Austin Cost of Living (2026)
Austin’s cost of living runs about 3% above the U.S. average on the C2ER composite index — the highest of Texas’s big three metros by that measure — and housing is the main reason. The metro median home sold for $412,000 in August 2026 (Unlock MLS) and the housing index sits roughly 8% above the national norm. No state income tax and apartment rents that have softened since 2024 take some of the sting out.
COL index (US avg = 100)
103
Median home value
$412,000
Median 1-BR rent
$1,400/mo
Effective property tax
1.31% effective (Travis County)
Austin cost of living vs. the U.S. average
| Category | Austin index | U.S. average | Difference | What it means |
|---|---|---|---|---|
| Overall | 103 | 100 | +3% | 3% above U.S. average on the C2ER composite index |
| Housing | 108 | 100 | +8% | 8% above average — Austin’s defining cost, the opposite of Houston and Dallas |
| Groceries | 97 | 100 | -3% | slightly below average |
| Utilities | 98 | 100 | -2% | near average; milder winters than North Texas ease the bill |
| Transportation | 100 | 100 | even | right at the national average; a car-dependent metro |
| Healthcare | 99 | 100 | -1% | near average |
Index base: 100 = U.S. national average. A value of 94 means ~6% below the national average.
Sources & methodology
- COL composite index: C2ER / BLS / BEA regional price parities (2024–2025), base 100 = U.S. average; corroborated at ~3% above average by 2026 cost-of-living trackers (source)
- Property tax: Tax Foundation, county effective rates on owner-occupied homes (2024): Travis County 1.31%, an effective rate after exemptions across all owners. A new buyer inside Austin city limits faces a combined rate of about 2.05%, before exemptions (City of Austin + Austin ISD + Travis County + ACC + Central Health, 2025; TCAD 2025 Annual Report, ACC, Central Health); that is a different basis and the two should not be compared directly. (source)
- Median home price: Austin-Round Rock-San Marcos metro median sale price, August 2026: $412,000; City of Austin: $560,000 the same month (Unlock MLS, the Austin Board of REALTORS® MLS, August 2026 Central Texas Housing Report, checked October 2026) (source)
- Median rent: RentCafe observed rent, May 2026 (1-bedroom ~$1,412); Austin rents have fallen year over year amid heavy new apartment supply (source)
- Median household income: U.S. Census Bureau, American Community Survey 2024 (Austin city ≈ $93,700)
- Why indices disagree on Austin: Composite indices do not agree on where Austin sits. C2ER/BLS-based indices put it about 3% above the U.S. average and ahead of Dallas, while the BEA’s 2024 regional price parities put Austin–Round Rock at 98.1 against Dallas–Fort Worth at 103.1. RPP covers the entire metro, including lower-cost outlying counties; C2ER prices a professional household’s basket in the urban core. Both measures appear on this site, and the gap reflects the basket, not an error.
- Comfortable salary (~$75,000): derived from MIT Living Wage + Austin COL index, 2025–2026
Figures accessed May 2026. Cost-of-living estimates vary by source and household; use the calculator below for your own income and city pair.
Compare Austin to your current city
Cost of Living Comparison
Compare how far your dollar goes between cities. Index of 100 = national average.
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Frequently Asked Questions
Is Austin expensive to live in?
By Texas standards, yes. Austin’s C2ER composite cost-of-living index is about 103 (base 100), roughly 3% above the national average and the highest of the state’s big metros on that measure. The BEA’s regional price parities, which cover the whole metro rather than the urban core, put Austin slightly below Dallas instead. Housing drives the difference: the Austin metro median sale price was $412,000 in August 2026 (Unlock MLS, the Austin Board of REALTORS® MLS) and the housing index runs about 8% above average. The offsets are real. Texas charges no state income tax, and a wave of new apartments has pushed the typical 1-bedroom rent down to about $1,400 a month.
What salary do you need to live comfortably in Austin?
A single person needs roughly $75,000 a year to live comfortably in Austin as of 2026, an estimate derived from the MIT Living Wage figure adjusted for Austin’s cost-of-living index. Families and the pricier central neighborhoods (Travis Heights, Tarrytown, downtown) push that number higher. For context, the Census puts Austin’s median household income near $93,700. Because Texas has no state income tax, your take-home pay stretches further than the same gross salary would in a state that taxes income.
Why is Austin housing so expensive?
A decade of tech hiring and corporate relocations pulled in more people than the city could build homes for, and prices climbed faster than almost any large U.S. metro through the early 2020s. The market has cooled since its 2022 peak, but the Austin metro median sale price was still $412,000 in August 2026 (Unlock MLS August 2026 report), and $560,000 inside the City of Austin limits the same month. Renting tells a different story. Builders delivered tens of thousands of new apartments, and that supply has dragged the median 1-bedroom rent down to roughly $1,400, lower than a year ago.
Is Austin or Dallas more expensive?
Close enough that the answer depends on the yardstick. The C2ER composite puts Austin a touch higher (103 versus 102); the BEA’s 2024 regional price parities flip it, at 98.1 for Austin–Round Rock against 103.1 for Dallas–Fort Worth. What is not ambiguous is where the money goes. Austin homes are pricier: inside city limits, Redfin’s median sale price for the three months to August 2026 was $549,636 in Austin against $448,703 in Dallas, and Austin utility bills run steeper. Property tax depends on the address and on which rate you compare: before exemptions, a City of Dallas home carries a combined rate near 2.23%, while an Austin city-limits stack varies by school district and MUD (see the property-tax note under Sources); after exemptions, the county effective rate is 1.31% in Travis County and 1.45% in Dallas County (Tax Foundation, 2024). If you are buying, Austin usually costs more; if you are renting, Dallas can edge ahead.
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