Austin is moderately more expensive than the US average, and almost all of the gap is housing. The headline number depends entirely on where you draw the line around the city, which is the single most common way this question gets answered wrong. In June 2026 the median sales price was 605,000 dollars inside the city of Austin and 450,000 dollars across the five-county Austin-Round Rock-San Marcos metro, per Unlock MLS, and a one-bedroom rents for roughly 1,300 to 1,400 dollars a month. The other headline is the Texas tax trade-off: there is no state income tax, which is a real draw, but property taxes are high, with a combined rate near two percent of taxable value inside the city. Groceries and most everyday costs run close to or a little below the national average. Here is the breakdown, with the standing caveat that these numbers move, so treat them as a mid-2026 snapshot and verify the current figures before you budget.
The short version
Austin costs roughly ten percent more than the US average overall, and the gap is almost entirely housing. Outside of rent and home prices, day-to-day costs (groceries, eating out, getting around) sit close to the national average, and groceries actually run a touch cheaper. The two numbers that define the city’s affordability are the price of housing and the property tax bill that comes with owning it.
Buying a home
There is no single Austin median, and the gap between the two published ones is wide enough to change a decision. Unlock MLS, the local multiple listing service, put the June 2026 median sales price at 605,000 dollars inside the city of Austin, up 3.6 percent from a year earlier, and 450,000 dollars across the five-county Austin-Round Rock-San Marcos metro, up 1.1 percent. Travis County on its own ran 499,900 dollars for the first half of the year. Both headline figures are off the pandemic peak and both remain above the national median. On top of the mortgage, budget for property taxes with a combined rate near two percent of the home’s taxable value, which adds several hundred dollars a month to the real cost of ownership. Prices vary widely by area, from the central-west and Westlake premium down to the more affordable suburbs.
Renting
Renting is the more flexible entry point, and it costs less than the buying figures suggest. The listing trackers disagree on the exact number, which is worth knowing before you anchor on one. As of July 2026 Zumper put the Austin one-bedroom at 1,274 dollars a month and the two-bedroom at 1,616, while RentCafe put the same units at 1,415 and 1,820. Call it roughly 1,300 to 1,400 dollars for a one-bedroom and 1,600 to 1,800 for a two-bedroom. The spread by neighborhood is far larger than the spread between sources: central and East Side addresses command a premium, while the northern and far-south suburbs run meaningfully cheaper. Where you live drives the number more than almost anything else, which is what our neighborhoods guide is for.
The tax trade-off: no income tax, high property tax
This is the part newcomers most need to understand. Texas has no state income tax, written into the state constitution, which is genuinely valuable, especially on a high salary. But the state makes it up elsewhere: property taxes are among the highest in the country, with a combined rate for tax year 2025 near two percent of taxable value inside Austin (school district, city, county, health district, and community college combined), charged on taxable value after homestead and other exemptions rather than on the purchase price, and sales tax runs 8.25 percent. For homeowners, the property tax bill offsets a chunk of the income-tax savings; for high earners who rent, the no-income-tax math is more clearly a win.
Groceries, utilities, and getting around
Everyday costs are close to average, with a few Austin-specific notes. Groceries run a little below the national average, and a single person might spend 400 to 500 dollars a month. Utilities are reasonable most of the year, but summer air-conditioning pushes electric bills up from roughly June through September. Austin is car-dependent outside the central core, so factor in a car, gas, and parking unless you land somewhere genuinely walkable.
Salaries and the tech factor
The cost-of-living math depends heavily on what you earn. Austin’s tech sector (the Silicon Hills boom) pushed both wages and housing prices up, so the numbers work much more comfortably on a software salary than on a service-industry one. The flip side of the growth that made Austin expensive is a strong job market, especially in tech, which is the trade a lot of newcomers are making.
How it compares
Austin is a clear bargain next to the coastal tech hubs: noticeably cheaper than San Francisco, New York, or Los Angeles. It is more expensive than the rest of Texas, including Dallas, Houston, and San Antonio, and a bit above the national average. The pitch is the combination: big-city jobs and culture, no state income tax, and a lower cost than the coasts, in exchange for high property taxes and summers that earn the air conditioning.
Common questions
- Is Austin expensive to live in?
- Moderately. Austin runs roughly ten percent above the US average overall, and nearly all of that is housing. Outside of rent and home prices, everyday costs are close to the national average, and groceries are slightly cheaper. The big variables are your housing choice and, if you buy, the property tax bill.
- What is the average rent and home price in Austin?
- As of July 2026, a one-bedroom rents for roughly 1,300 to 1,400 dollars a month and a two-bedroom for roughly 1,600 to 1,800, with a wide spread by neighborhood. On the buying side, Unlock MLS put the June 2026 median sales price at 605,000 dollars inside the city of Austin and 450,000 dollars across the five-county metro, so which figure applies to you depends on where you are looking. These move, so verify current figures before budgeting.
- Does Austin have a state income tax?
- No. Texas has no state income tax, which is set in the state constitution and is one of the main draws for movers and businesses. The trade-off is that the state leans on property tax (high) and sales tax (8.25 percent in Austin) instead.
- Are property taxes high in Austin?
- Yes. The combined rate inside Austin for tax year 2025 is near two percent of a home’s taxable value, blending the school district, city, county, health district, and community college. That rate is charged on taxable value after homestead and other exemptions, not on what you paid, so the share of the purchase price you actually hand over is somewhat lower and depends on the property and your exemptions.
- Is Austin cheaper than other big cities?
- It depends which ones. Austin is significantly cheaper than San Francisco, New York, and Los Angeles, but more expensive than the rest of Texas (Dallas, Houston, San Antonio) and a bit above the national average. The no-income-tax benefit and the job market are the value proposition.
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