Is Austin Affordable?

Is Austin Affordable? Everything You Need to Know Before Moving In

Austin is commonly known as one of the best places to live in the United States, thanks to its affordable housing, great location, and warm weather. 

However, some people still think that Austin isn’t as affordable as everyone says. For this reason, we decided to write an article to increase the awareness about the affordability of this amazing city.

Without further ado, here’s everything you need to know about Austin, Texas:

 

Overview- What it’s like to live in Austin?

Besides being the actual state capital of Texas, Austin is also the cultural capital of the state. Austin is a phenomenal cultural scene ready for exploring. With its great brunch spots, fabulous cafes, feral nightlife, and beautiful scenery, the city offers a plethora of unforgettable experience for everyone.

The city is home to the famous University of Texas at Austin and several other prestigious universities.

When it comes to the population, it has recently been on a significant uptrend with more and more people moving in each year. Although people usually say that Californians have been swooping in, there are also many people moving from New York and Florida as well.

Growing population obviously increases the demand for housing, and this is where the question of supply and demand over housing options comes into play.

Is Austin still an affordable city for an average person wanting to move in? Let’s take a look.

Current housing situation

Austin has undoubtedly become one of the fastest-growing cities in the U.S. However, the number of available homes and apartments is very limited compared to the large number of residents moving in each year.

Property prices have gone up by 20% in Q2 2021 alone. The median house price of Austin currently sits at $470,000.

Here is a list of other similar markets and their median house prices for comparison:

-Houston: $300,000

-Seattle: $765,000

-Denver: $545,000

-San Francisco Bay Area: $1.79 million

It is safe to say that in comparison with similar markets, Austin is a very affordable city for anyone wanting to move in. The only issue with affordability here is the purchase price of homes. This significantly pushes up the overall cost of living in Austin, and it is the reason why people think Austin is too costly for them.

There, of course, is a different option for you if you don't want to purchase a property, and it simply is to rent it out. Let’s check the rent prices, then:

Rent prices

The average rent in Austin sits at around $1,450, which is slightly under the national average renting price of $1,463. However, it is essential to say that the rental prices vary in each neighborhood.

The Downtown areas such as Rainey Street can be easily priced at $2,300 or more. Whereas more affordable rentals can be found in South Austin neighborhoods such as Riverside at around $1,250.

 

Most popular neighborhoods in Austin

Rainey Street

Rainey Street is a very feral neighborhood. It truly is the life of the party. It's one of the unique places to live in Austin if you’re up for late nights on one of the most entertaining streets.

Wells Branch

This neighborhood is 15 miles north of Downtown Austin, which makes it a convenient spot if you want the best of both worlds– it's close enough to the lively center, but far enough to not having to be in the center of all events.

Mueller

This North Austin neighborhood is perfect for family life since it's calmer than other neighborhoods. The neighborhood also has a wide variety of restaurants and great places worth visiting.

There, of course, are many more great neighborhoods in Austin, but we simply wanted to point out our most favorite ones to give your a slight idea of what you can expect from each.

General costs of living expenses

Living in Austin generally demands air conditioning for the famous hot and humid summers, but other utilities should also be taken into account.

The average cost for gas, water, and electricity is around $150/ month. 

Yearly, that would cost up to $1,800, which may seem like a lot at first glance, but it's actually %15 less than the national average of $2,060 per year.

Another advantage is a cheaper internet connection. The average price for an internet connection in Texas is around $63 per month, which is less expensive than an internet connection in other states, where it could cost over $100/month.

Salaries

The average hourly wage in Austin is $26.53, which sums up to around $55,182 per year. The hourly wages for Austin are, in fact, higher compared to the national average of $25.72. The minimum wage matches the federal minimum at $7.25 an hour.

Generally speaking, living in Austin on a $40-50k salary is much more doable compared to other popular cities such as New York or San Francisco. It’s also easier to comfortably make a living in Austin than in other major cities. 

This is one of the many reasons why so many people are moving in each year.

Conclusion

Choosing to move to a new city isn’t an easy task since there are many things you have to take into account. We hope that our article helped you increase your awareness about the beautiful city of Austin and that you now have all the necessary information to make the right decision. 

If there’s anything you’d like to ask about living in Austin, feel free to reach out to us. Our team will be more than happy to answer all your questions. 

Make sure to check our blog section for more helpful articles.

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