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.
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.
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.
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.
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.
Home Prices: The median home price in Tarrytown is about $810K. It's a mix of elegant historic homes and sleek, modern builds, some with private docks on Lake Austin.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.
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 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 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.
Home Prices: Circle C Ranch homes have an average sale price of $704k. These properties often have ample outdoor space, perfect for playing, barbecuing, or gardening. The variety of home styles—from charming single-stories to more expansive two-story homes—means you can find the ideal fit for your family’s needs.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.
Transportation: Commuting from Circle C Ranch is a breeze, thanks to its proximity to major highways and public transport options. Whether heading to downtown Austin for work or exploring the local shops, getting around is hassle-free.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.
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.
To get a better understanding of whether living in Austin is affordable for you, let’s compare it to other cities in Texas:
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.
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.
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.
Yes, Austin is an excellent choice for families due to its quality schools, diverse recreational activities, and vibrant community spirit.
Property taxes in Austin typically range from 1.7% to 2.2% of the home’s assessed value.
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.