What’s the Average Cost of Living in Austin, Texas?

The cost of living in Austin, Texas, is one of the biggest factors drawing active adults and retirees to the area. With its warm weather, relaxed lifestyle, and unique culture with live music, museums, and a diverse culinary scene, it’s no wonder so many are trading their snow shovels for the Austin sunshine. 

Before you pack your bags, this guide offers a snapshot of how far your dollar goes in this exciting city—an essential consideration if you’re choosing to relocate to Austin. From housing and healthcare to groceries and gas, we break down several Austin living expenses to help you make the move with confidence and excitement. 

Summary:

• Cost of Living in Austin, Texas

• Housing Costs in Austin, Texas

• Other Austin, Texas, Living Expenses

  • Grocery Shopping and Dining Out in Austin

  • Transportation Options and Fuel Costs in Austin

  • Healthcare and Insurance Costs in Austin

  • Utilities, Internet, and Phone Expenses in Austin

  • Tax Rates in the Austin Area

  • Recreation Costs in Austin, Texas

• Average Salary in Austin, Texas

• Average Cost to Build a New Home in Austin by Neighborhood

• Cost of Living in Austin, Texas, Conclusion

Cost of Living in Austin, Texas

Austin is known for its creativity, community spirit, and great weather. But how does it impact the bottom line of your budget? The Austin, Texas, price of living may surprise you. Here, you can enjoy all that this dynamic city offers without the financial stress some other major cities may put on your pocketbook. According to RentCafe®, as of March 2025, the cost of living for Austin, Texas, is around 3% higher than the state average but 3% lower than the national average, helping you benefit from big-city perks at a more reasonable price tag.

The Austin cost of living for housing can be a bit more expensive, depending on the location, with the average cost being about 4% higher than the U.S. average (RentCafe, March 2025). However, average grocery, utility, and healthcare prices all come in at slightly below national numbers. As of February 2025, the MIT® Living Wage Calculator finds that a household of two adults with no children needs roughly $68,937 per year (before taxes) to live in Austin.

Housing Costs in Austin, Texas

As of May 2025, Redfin® reports the median home price in Austin is $560K, with homes typically on the market for about 48 days. That can be beneficial if you’re looking to shop around without pressure.

Prefer to rent before buying a new home? Per Apartments.com®, the average monthly rent in Austin hovers around $1,433 for a one-bedroom apartment as of July 2025, about 12% below the national average. A two-bedroom apartment averages $1.8K, and three bedrooms cost about $2.4K each month, all offering you room to breathe and budget. MIT estimates that two adults spend around $19.8K per year on housing in Austin.

Other Austin, Texas, Living Expenses

While housing is typically a large part of the Austin average cost of living, other essentials like healthcare and groceries contribute to your annual budget. Planning for Austin, Texas, living expenses like personal care, entertainment, and clothing tends to be more affordable than in many metro areas. RentCafe notes that entertainment and personal care services cost about 8% less in Austin than the national average as of March 2025, with clothing around 8% cheaper, too. That offers more room in your wallet for weekend outings and new hobbies like a wine club, as well as other everyday needs. 

Grocery Shopping and Dining Out in Austin

Groceries cost about 3% less in Austin than the national average, according to RentCafe (March 2025), while MIT estimates that a household of two adults spends approximately $7.7K annually for food as of February 2025, which includes home cooking along with the occasional night out. 

And you’ll absolutely want to dine out now and then in Austin. From food trucks serving legendary tacos to lakeside dinners with a view, the city offers lots of flavor for your taste buds. It’s a foodie paradise minus the sticker shock. Numbeo™ finds that a simple meal at a low-priced restaurant averages $20 as of July 2025, while a three-course spread at a nicer, mid-range establishment runs about $75. 

Transportation Options and Fuel Costs in Austin

Getting around Austin can often be cheaper than you might think. RentCafe finds transportation costs to be 5% lower than the national average as of March 2025, with AAA® stating that gas prices in Austin average $2.744 as of July 2025, compared to the national average of $3.178. MIT’s February 2025 Living Wage data estimates that transportation for a household of two adults averages $11.8K annually.

Public transportation is also an option if you prefer to save on gas when commuting. CapMetro offers bus day passes for $2.50 and daily commuter passes for Express and Rail routes for $7 as of May 2025. You can even ride the CapMetro Rail from Downtown Austin to Leander. Prefer two-wheel rides? Austin has bike and scooter rentals, plus friendly pedicabs for a scenic lift.

Healthcare and Insurance Costs in Austin

The average living cost in Austin, Texas, for healthcare is 1% below the national average, per RentCafe’s March 2025 data. Whether it’s a routine check-up or filling a prescription, you’ll likely spend a little less here. MoneyGeek® reports that the more affordable Texas monthly insurance premiums range from $306–$555 as of June 2025, depending on the plan coverage and your personal medical needs. Overall, February 2025 data from MIT finds that a household of two adults spends about $7.2K annually in medical expenses, which includes doctor visits, prescriptions, and insurance.

Utilities, Internet, and Phone Expenses in Austin

RentCafe reports that utility costs in Austin are 1% less than the national average as of March 2025, with monthly energy bills being approximately $196. MIT finds internet and mobile fees average $2K annually for a household of two adults living in Austin, meaning streaming shows, attending Zoom book clubs, or FaceTiming loved ones could average $170 per month as of February 2025.

Tax Rates in the Austin Area

One tax benefit Texas residents enjoy is that there’s no state income tax. However, sales tax does factor into the cost to live in Austin, TX, and the 2025 sales tax rate is 8.25% per Avalara®, which incorporates both the state and local rates. MIT estimates $8.4K/year in total taxes for two adults, including sales and other applicable taxes.

Recreation Costs in Austin, Texas

When it comes to attractions and recreational activities, Austin really shines. You can find an abundance of free and affordable fun things to do in Austin. Take a stroll around Lady Bird Lake or picnic at Zilker Park. Catch a concert at ACL Live (prices vary depending on the date, location, and performer), explore the Blanton Museum of Art for free every Tuesday, or enjoy an evening of wine and cheese tasting at Antonelli’s for $50. Whether you're outdoorsy, artsy, or just like to stay active, there’s plenty to enjoy within your budget. 

Average Salary in Austin, Texas

ZipRecruiter® reports the average annual salary in Austin is $69K or $5.7K monthly as of April 2025, with most residents earning somewhere between $50.5K–$85.9K. 

Average Cost to Build a New Home in Austin by Neighborhood

Many wonderful neighborhoods in and around Austin are ideal for active adults beginning their next life chapter. Here are a few of the best places to live in Austin, where you can find new construction homes.

Georgetown

Georgetown is a gem for those who love a hometown with charm, community, and accessibility. The historic downtown square is one of the most picturesque in Texas, lined with boutiques, galleries, and cozy cafes. You’ll find plenty of parks, trails, and even a stunning riverwalk along the San Gabriel River. If you’re seeking a peaceful place to settle down that still keeps you engaged, Georgetown could be perfect for you. The cost to build a new home in Georgetown, according to NewHomeSource™, ranges from the lower $200Ks to upper $1.3M as of May 2025. New homes in Del Webb 55+ communities in Georgetown, TX, start in the lower $300Ks.

Round Rock

Round Rock offers the best of both worlds: big-city convenience and a laid-back suburban feel. It’s well known for quality healthcare access, ample shopping at spots like IKEA and Round Rock Premium Outlets, and an easy drive into Austin. Outdoor enthusiasts appreciate places like Old Settlers Park and Brushy Creek Trail, which offer scenic paths, pickleball courts, and plenty of space for exploring nature. Round Rock can be a great option for those who want to stay active while also being conveniently close to the downtown area. Plus, the community offers a warm and welcoming vibe. New construction homes in Round Rock range from the mid $200Ks to the upper $1.7M, per NewHomeSource (May 2025).

Leander

Situated northwest of Austin, Leander is a growing suburb with a friendly, relaxed pace. It connects easily to Austin via the MetroRail, so making trips into the city can be convenient and don’t require driving or dealing with traffic. Nature lovers enjoy the town’s access to Hill Country views, nearby lakes, and local wineries. It’s perfect for folks looking to be close enough to the city for culture and dining, but far enough away to enjoy quieter mornings and star-filled nights. Leander attracts all kinds of homebuyers, so you’ll find a diverse demographic. The cost of new construction homes in Leander ranges from the low $300Ks to low $2.2M, according to NewHomeSource as of May 2025.

Kyle

Located south of Austin, Kyle has transformed from a sleepy town into a thriving suburb. It offers an enchanting small-town atmosphere with a growing list of restaurants, grocery stores, and wellness services. Kyle tends to be especially popular with those looking for value and space without sacrificing easy access to Austin’s amenities. The area is also known for hosting local farmers' markets and seasonal festivals, great for keeping your social calendar full and your weekends fun. As of May 2025, the cost to build a new home in Kyle, per NewHomeSource, ranges from the lower $200Ks to the upper $800Ks.

Bastrop

Bastrop can feel like a hidden Texas treasure, with its historic downtown, strong arts scene, and stunning views of the Colorado River. Nature plays a big role here, with Bastrop State Park offering scenic trails, camping, and bird-watching year-round. It’s ideal for active adults who crave slower mornings, creative inspiration, and a little more elbow room. You’ll find local shops, hometown eateries, and a real sense of community pride. If you’re dreaming of a quieter, more artistic life close to nature and Austin, Bastrop may suit you well. The cost to build a new home in Bastrop, according to NewHomeSource, ranges from the upper $200Ks to the lower $600Ks. Explore Del Webb active adult communities in Bastrop, TX.

Cost of Living in Austin, Texas, Conclusion

Understanding the average cost of living in Austin, Texas, is key to feeling confident when choosing this dynamic city for your retirement plans. Whether you’re seeking pickleball games and wine tasting or outdoor adventures and a myriad of cultural attractions, Austin is an excellent spot for your next chapter. The reasonable Austin cost of living, beautiful neighborhoods, and abundant recreational activities help make this sparkling city a place where you can flourish.

Explore active adult communities in Austin, TX, today, or browse more Del Webb blogs. 

Written By: Jordan Thomson, Freelance Writer