Austin Texas Cost of Living 2023

Are you considering moving to Austin, Texas? You’re not alone! Many people are flocking to this vibrant city for its networking opportunities, fresh start potential, and trendy environment. Of course, it doesn’t hurt that Austin is just plain cool. But the real question is, can you afford to live here? Whether you’re moving in the next few months or next year, let’s explore the cost of living in Austin.

Hi, I’m Tiffany Moore, a real estate agent and broker in Austin, Texas. I specialize in helping people from around the world buy and sell homes in this area. If you want to stay informed about Austin’s real estate market and lifestyle, please subscribe to my YouTube channel and give me a like. And if you have any questions about relocating here, don’t hesitate to contact me. My information is below.

The Cost Of A Home In Austin

Let’s start with the biggest expense of all: housing. The cost of a home is a significant factor in everyone’s budget, and Austin’s housing market has undergone several changes in recent years. Today, we’ll explore the current cost of homeownership in Austin and compare it to other regions in the US.

Austin’s housing market is booming, and you’ve probably heard that people are moving here every day. However, the cost of living in Austin is all relative. It depends on where you’re moving from. To illustrate this point, let’s compare the cost of living in Austin to that of San Jose, California, and Louisville, Kentucky. The affordability of Austin depends on which of these two regions you’re comparing it to.

Let’s dive into some figures on the median home sale price for Austin and other cities. In October 2020, the median sales price for homes in the Austin/Round Rock metro area was $475,000, a 4% increase from the previous year. However, this is a significant decrease compared to May of that same year, when the median sales price was $550,000, representing a 13% decrease. While the housing market in Austin and across the country is changing, real estate trends show that it will continue to rise over time. For those not planning to buy and sell in the short-term, this dip should not pose much of an issue. These numbers are specifically for the Austin Round Rock Metro Area.

Now, let’s focus on the city of Austin. In October of 2021, the median sales price for homes in the city was $555,000, a 3% increase from the previous year. However, in May of that year, the median sales price was $667,000, marking a 17% increase. Despite the current economic situation and layoffs in the tech industry, which many newcomers to Austin work in, the median sales price in the city has increased by 3% from the previous year.

The Cost Of Utilities In Austin

Aside from housing, other factors that contribute to the cost of living include utilities, groceries, gas, and health coverage. In Austin, utilities cost 5% lower than the national average, with electricity averaging at around $160 per month, and cell phone plans costing around $175 per month. As for gas prices, the average cost per gallon in Austin is currently around $2.68. While food expenses vary depending on individual habits, grocery expenses tend to make up a significant portion of people’s expenses.

Austin is a great place to live with lower grocery prices, which are 8% lower than the national average. Prices for common groceries like bread, milk, eggs, bananas, and hamburgers are relatively low in Austin. However, healthcare costs are 5% higher than the national average, possibly because of the availability of specialists in the city.

The Cost Of Living In Austin Compared To Other Cities

If you are moving to Austin from San Jose, you will find that housing is much more affordable in Austin. The median sales price for a home in San Jose is 2.6 times higher than in Austin, with a median sales price of 1.45 million in San Jose compared to 555,000 in Austin. While payscale.com is a good resource for information on utilities, healthcare, and other expenses, the data on housing prices can be unreliable.

Aside from housing, San Jose has a higher cost of living than Austin, with utilities, groceries, transportation, and healthcare all costing more than the national average. For example, utilities are 24% higher, groceries are 21% higher, and healthcare is 20% higher in San Jose than the national average. Additionally, prices for common groceries like bread, milk, eggs, bananas, and hamburgers are higher in San Jose than in Austin.

If you’re considering moving to Austin, Texas, and are concerned about the cost of living, especially compared to where you’re currently living, it’s important to note that the median sales price for a home in Austin was $555,000 in October 2022, while in Louisville, Kentucky, it was $242,000. This means that the cost of housing is the most significant expense for most people. Keep in mind that the numbers for November are not yet available in any area, so these are the most accurate figures.

For example, if you’re moving from Louisville, Kentucky, to Austin, Texas, and want to maintain the same cost of living, you would need to earn around $230,000 instead of $100,000. The cost of utilities in Louisville is 3% higher than the national average, while groceries are 7% lower, and healthcare is 19% lower. The prices for common grocery items are similar to Austin’s, with the exception of housing and healthcare, which are higher in Austin.

Entertainment In Austin

When it comes to dining out, Austin offers a wide range of options to suit any taste and budget. You can spend as little as $2 on a taco or as much as $500 on a fancy dinner. Expect to pay around $10 to $14 for a good cocktail in Austin, although prices can vary depending on where you go.

Are you planning to visit Austin and wondering about the cost of living there? Allow me to share some insights that might help. My husband and I love going to Pinballs, an adult arcade with an impressive whiskey bar. While prices can vary depending on where you go, a good cocktail usually costs between $9 and $15. However, we once splurged on a $25 rye Manhattan at Pinballs, which was worth every penny. If you’re a movie buff, expect to pay $10 for a matinee and $14 for an evening show. Gym memberships at places like Gold’s Gym or LA Fitness typically range between $35 and $45.

It’s important to remember that the cost of living in Austin may vary depending on where you’re coming from. While it might seem cheap compared to San Jose, it could be more expensive than other cities like Louisville, Kentucky. Consider your monthly budget and weigh the pros and cons of moving to Austin. Will you be saving money or spending more? If you have any questions about moving to Austin or buying a home there, feel free to reach out to me.