Is Austin Affordable?

Austin, Texas has become a magnet for job seekers, music lovers, and outdoor enthusiasts. With tech giants such as Tesla, Apple, and Oracle calling the city home, the job market continues to grow. 

But is Austin affordable?

Austin welcomes roughly 33,000 newcomers annually. With rising housing costs and an increasing cost of living in Austin, TX, it’s essential to understand what it takes to live comfortably in the city.

Austin Housing Market

As of 2024, Austin’s real estate market is competitive, yet there has been a break from the jaw-dropping price hikes of recent years. 

The median sale price in Austin is currently around $554,000, reflecting a modest 2.1% increase from 2023. Compare that to 2021-2022, when prices surged by as much as 20% annually, and it’s easy to see why the Austin housing market feels more approachable in 2024.

But what exactly does a half-million-dollar home buy you in Austin? The best neighborhoods in Austin offer a range of options, whether you’re eyeing luxury living, a family-friendly community, or a place with a starter home price tag. 

Best Neighborhoods to Live in Austin 

West Lake Hills

West Lake Hills stands out if you want a blend of luxury and natural beauty. It's a gorgeous, close-knit community just 15 minutes from downtown Austin. Stunning hilltop homes, outstanding schools, and green space—Westlake’s got it all.

• Home Prices: Living here is a splurge, with the median listing home price around $3 million. Yes, it’s pricey, but you’re getting spacious homes and gorgeous views, and some properties have Lake Austin access. Property taxes in this area vary significantly depending on home value and local tax rates. Still, many say it’s worth it for the lifestyle.
  
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Schools: Families love Westlake for its schools. Part of the Eanes Independent School District, these schools — especially Westlake High—are well-regarded for their academic rigor and excellent sports programs. 

• Cost of Living: The daily expenses for living in West Lake Hills are relatively reasonable:
  
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• • Groceries: The area has plenty of high-end and organic markets. Grocery prices are about 10-15% below the national average.
  • Transportation: Getting downtown is easy, thanks to nearby highways. However, public transit isn’t an option—most folks here rely on their cars.
  • Healthcare: With facilities like St. David’s Medical Center close by, quality healthcare is accessible here, though about 1% pricier than the national average.
  • Entertainment & Outdoor Perks: Westlake is a paradise for those who love the outdoors. You’ve got the Wild Basin Wilderness Preserve, ideal for hiking in addition to golf and tennis clubs. Popular restaurants include Abel’s on the Lake and Eddie V’s Prime Seafood.
  
  
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Tarrytown

One of the best places to live in Austin, TX, Tarrytown is effortlessly charming. Imagine tree-lined streets, historic homes oozing character, and Lake Austin at your doorstep. Residents enjoy a small-town feel and the amenities make everyday life comfortable.

Family-Friendly Perks: One of the biggest draws here for families is the lake access. For education, reputable local schools make this area a favorite among families. It is served by the Austin Independent School District and its strong reputation for quality education. Also, local schools like Casis Elementary are highly rated. Middle and high schools, such as O. Henry Middle School and Austin High School, also provide strong educational opportunities, contributing to Tarrytown’s appeal as a family-friendly neighborhood.

Cost of Living: The daily expenses for living in Tarrytown tend to be a bit higher:

Groceries and Dining: There’s no shortage of cozy cafes and quality restaurants like Mozart’s Coffee Roasters or Hula Hut. Food costs are about 12% below the national average. 

Transportation: While most people here rely on their cars, Tarrytown is surprisingly bike-friendly, especially along Lake Austin Boulevard. Whether by car or bike, it’s a quick trip downtown—perfect for those who love escaping to the city but enjoy living in a quieter space.

Healthcare: Tarrytown’s healthcare access is excellent, and costs are comparable to the Austin average.

Entertainment and Lifestyle: Living in Tarrytown is like having a permanent ticket to relaxation and adventure. You’re right by the lake, so weekends can be full of kayaking, paddle boarding, or enjoying a lazy afternoon in Reed Park. For a dose of city life, Austin’s music scene and lively downtown are just a short drive away.

Tarrytown blends a laid-back vibe with sophistication, thanks to its historic architecture, family-friendly feel, and lake access.

Best Neighborhoods in Austin for Growing Families

If you are moving to Austin with your family, here are the best neighborhoods to consider:

Mueller

Mueller is a master-planned neighborhood and a fantastic option for families wanting modern homes, a safe community, and a vibrant atmosphere. 

Home Prices: In Mueller, the median sale price is around $750,000. For that investment, you’re not just buying a house but embracing a lifestyle packed with amenities and community spirit. There are many new construction homes in Mueller, TX, meaning you can enjoy the latest designs and energy-efficient features. These also tend to be strong options for first-time homebuyers or growing families that are priced out of established and expensive neighborhoods.

Family-Friendly Perks: Mueller is a dream for families, bursting with parks, playgrounds, and beautifully maintained green spaces. You can spend your weekends exploring scenic trails, playing in the parks, or enjoying a delightful picnic under the Texas sun. The community vibe here is strong, with families gathering for local events and activities that foster a sense of belonging.

Cost of Living: While living in Mueller provides excellent value, it's worth considering the overall cost of living:

Groceries and Dining: The area is home to popular restaurants and cafes. Grab a bite at L’Oca d’Oro or enjoy Southern comfort food at Colleen’s Kitchen. Dining costs are comparable to most Austin restaurants, so you can enjoy a mix of casual and more upscale dining options without breaking the bank.

Transportation: Getting around is a breeze with easy access to major highways and public transportation options. You can enjoy a quick commute to downtown Austin while relishing Mueller's suburban feel.

Lifestyle: Mueller embodies a sense of community that makes it stand out. Whether it’s participating in neighborhood events, biking along the green belts, or participating in local festivals, there’s always something happening here. 

Circle C Ranch

Circle C Ranch is one of the best neighborhoods in Austin, TX. It captures the essence of suburban living while offering all the modern conveniences families desire.  This is the place for you if you’re seeking spacious lots and a friendly community atmosphere.

Cost of Living: The cost of living here is quite reasonable for what you get:

Property Taxes: Based on current data, expect to pay property taxes in the range of $12,000 to $18,500. This will vary based on the tax rate and the assessed home value of a property.

Groceries and Dining: Circle C Ranch is close to various grocery stores and restaurants, offering everything from casual dining to gourmet options. You can stop by Satellite ATX Restaurant or grab brunch at The Grove Wine Bar. While dining out might be slightly higher than the national average, the convenience and quality make it a worthwhile experience.

• • Lifestyle: Circle C Ranch's strong sense of community sets it apart. Residents enjoy seasonal celebrations or band together for community clean-up days. You’ll find friendly faces at the local farmers' market and the community pool. 
    

Understanding Property Taxes in Austin

Property taxes in Austin are moderate compared to other major Texas cities. The property tax rate in Austin, on average, is between 1.7% to 2.2% of the assessed home value. This is somewhat higher than in San Antonio but lower than in some of the more affluent regions of Dallas.

Cost of Living in Austin: Utilities and Insurance 

Utilities: The average monthly utility bill (including electricity, water, gas, and trash services) for a 1,500-square-foot home in Austin ranges from $180 to $250. Austin Energy, which provides these services, offers some of the lowest rates in Texas.

Utility expenses can increase during the summer as temperatures can exceed 100 degrees. Be prepared for higher air conditioning costs during that time. Austin Energy's Budget Billing program allows monthly averaging to make budgeting easier and potentially reduce costs.

According to Numbeo, essential utility costs for a 914-square-foot apartment range from $101 to $345, averaging $171.43. Residents pay an average of $71 monthly for the Internet.

Car Insurance: Auto insurance rates in Austin are reasonably priced compared to other Texas metropolitan areas. The average annual premium is about $1,500, depending on your driving history and chosen coverage levels.

Home Insurance: Home insurance in Austin typically costs around $1,700 per year, though this can vary based on factors such as the value and location of the property.

Comparing Austin to Other Texas Cities

To get a better understanding of whether living in Austin is affordable for you, let’s compare it to other cities in Texas:

Austin vs. San Antonio:

• Housing: San Antonio's median home price is approximately $255,000, making it significantly more affordable than Austin for housing. The housing market in San Antonio offers a broader range of affordable options, especially in suburban areas.
• Cost of Living in San Antonio: Daily expenses like groceries and dining are slightly lower in San Antonio, making it a more budget-friendly option for many families.
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Austin vs. Dallas:

• Housing: Dallas's median home price is around $449,000, a bit more affordable than Austin. However, the Dallas housing market in upscale neighborhoods can be pricy and competitive.
• Cost of Living in Dallas: Generally, Austin’s cost of living, including entertainment and dining, is similar to Dallas's.

Austin vs. Fort Worth:

• Housing: Fort Worth’s median home price is a tick under $300,000, making it an affordable option among popular cities in Texas.
• Cost of Living in Fort Worth, Texas: Living in Fort Worth is slightly cheaper than in Austin, but those seeking the Austin lifestyle may find the difference worth the extra expense.
  
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Is Austin Affordable?

Living in Austin is affordable, depending on your lifestyle and financial situation. While housing costs can be high, the city offers tremendous value regarding quality of life, job opportunities, and cultural experiences.

Housing:

• Pros: Austin’s thriving tech industry, excellent schools, and diverse neighborhoods make it a prime location for families and young professionals.
• Cons: Relatively high housing prices may challenge those on a tighter budget, but the new home market can offer more affordable alternatives.

Cost of Living:

• Pros: Grocery, utility, and dining costs are reasonable, especially considering Austin's quality of living and amenities.
• Cons: The elevated property taxes and housing prices may make the area more expensive, particularly in some of the best neighborhoods in Austin.
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Is Living in Austin Worth the Investment?

Living in Austin, Texas, can be pricier than other cities in the state, but it offers outstanding value in lifestyle, career opportunities, and vibrant culture. There's something for everyone, from outdoor activities at Lady Bird Lake to a thriving music scene.

For those contemplating where to live in Austin, the city balances career growth and a community-focused lifestyle. Although it may be pricier than cities like Fort Worth or San Antonio, many find Austin’s charm, opportunities, and amenities worth the investment.

FAQs

What is the average cost of housing in Austin, TX? 

As of 2024, the median home price in Austin is approximately $554,000, with some neighborhoods like West Lake Hills and Downtown Austin being more expensive.

Is Austin an excellent place to live for families? 

Yes, Austin is an excellent choice for families due to its quality schools, diverse recreational activities, and vibrant community spirit.

What are property taxes like in Austin? 

Property taxes in Austin typically range from 1.7% to 2.2% of the home’s assessed value. 

Is public transportation accessible in Austin? 

Austin offers public transportation through Capital Metro buses and a developing light rail system. The city is also bike-friendly, promoting an active lifestyle and reducing transportation costs.