The Real Cost of Keeping Austin Weird: A Local Expert’s Guide to Budget Living in ATX

I’m Raul, your ApartmentHomeLiving.com local expert for Austin. I spend most of my time helping people understand what it actually costs to live in the music capital of Texas and where the best places to settle are.

The city has a reputation for being a creative hub while providing plenty of job opportunities. You’ll get fantastic food and an unmatched outdoor lifestyle. In this guide, I’ll walk through the major costs to consider that shape daily life in the city.

Expenses that Shape the Cost of Living in Austin

Austin used to be a small town compared to big metroplex hubs like Dallas and Houston, but that reality has changed over the years as tech corporations and people from out of state were attracted to the area.

The cost of living has changed as well, from food prices to rent and I’ve broken down what you can expect when moving to Austin.

Apartment Rent Prices Across Austin Neighborhoods

Housing costs make up the biggest portion of any resident’s monthly budget. Here is a quick comparison by floorplan of the average apartment prices in the city:

Studio apartments are on the lower end and a two-bedroom will cost around $2,000.

Downtown Austin and nearby areas like South Congress or East Austin are burgeoning hubs and tend to have the highest rents in the city.

You’ll find more affordable rates toward the outskirts of town where you're out of walking distance from the major restaurants, nightlife, and offices.

I moved to the Mueller neighborhood when I first got to Austin, before the HEB and huge shopping complex was built and it was very affordable.

Now, you’d have to look at areas like Windsor Park or Pleasant Valley to find lower monthly rates for rent by comparison.

Austin’s Growing Population and Tech Industry

A mass influx of out-of-state residents started moving into Austin over the past few years. People from California and other high-cost-of-living states flocked to Austin. The growing population has brought with it growing prices.

Austin’s expanding tech industry also had a major role in shaping the cost of living. Large companies and startups continue to hire new workers who are paid high wages, driving up prices in all types of establishments.

The growth also increased the demand for housing in neighborhoods closest to major office buildings.

You’ll constantly see new construction of additional housing units around town to accommodate the growing population. Downtown and surrounding areas have become significantly affected as well as newer developments like the Domain and Mueller.

Utility Costs in Austin

Every living situation in Austin is a bit different and brings with it a set of extra fees to consider. Here are some of the most common bills you’ll need to plan for.

• Electricity
• Water
• Gas
• Trash
• Internet
• Parking

I originally moved into a home in Austin and had to take care of typical home costs like electricity, gas, and trash. My bill was around $300 for a home and you can expect anywhere from $150 to $200 for an apartment.

Apartment buildings that include amenities like gyms, dog parks, or swimming pools may have an extra maintenance fee to keep everything running smoothly. If the apartment is downtown, you’ll likely have to tack on a parking fee as well.

You don’t have a lot of HOAs in Austin, so you won’t have to pay extra monthly fees when renting or purchasing a home.

Why Summer Electricity Bills Are Higher in Austin

If you’ve never experienced it before, Austin summers are intense. The humidity is much higher than places like Arizona and temperatures regularly reach the upper 90s and will climb above 100 degrees multiple times from June to September.

Air conditioning is a must and all housing complexes are legally required to provide air conditioning that cools temps to at least 85 degrees.

You’ll need to plan in advance for your summer electricity bills to climb as your air conditioning unit will run throughout most of the day and night.

Having inefficient insulation or older air conditioning units will raise your bills even higher during the summer months.

Transportation Costs for Austin Residents

Most residents have their own cars for commuting around town. Gas prices are on average with other cities in the state but traffic has increased with the growing population and older street infrastructure.

You may not need to drive your own vehicle if you’re moving to areas like Downtown or East Austin. Restaurants, grocery stores, and local shops are all close enough to walk or rent a scooter.

For public transportation, Austin has an active bus system and a commuter train that goes through central Austin. If you don’t live near central Austin, you’ll still need to find your way to the train station.

I actually drove a moped scooter for short commutes while living in the Mueller area, which helped me save on gas and parking fees.

Parking Costs in Downtown and Central Austin

While Austin is not anywhere near as bad as places like New York or Las Vegas, parking can get expensive if you plan on living in central Austin neighborhoods like Downtown or North University.

Apartments in these spaces typically come with a monthly parking fee added onto your living expenses for a dedicated spot.

Neighborhoods outside these areas have plenty of street parking but it can be hard to find an open spot. East Austin or South Lamar are neighborhoods that have seen significant growth and I’ve found it’s become much harder to grab parking during peak times.

Grocery Costs and Food Prices in Austin

Austin is filled with grocery retailers and corner shops that carry almost any item you’re looking for. You get national chains like Whole Foods and Randalls, but you’ll also get more local options like HEB and Wheatsville Co-op.

Prices will vary depending on what option you choose. Whole Foods started in Austin and has its corporate headquarters located there, so there is a bigger population that prefers organic, healthy products. These will be higher in price than at stores like Randalls.

You also get an abundance of farmers' markets on weekends that bring in fresh produce and local meats from the surrounding area.

Dining Out and Austin’s Restaurant Culture

The mix of Austin’s restaurant scene is unlike other cities. You get the full mix of casual restaurants, upscale dining establishments, local dining, and food truck centers.

I’ve tried them all and prices vary between each one. Typically, food trucks are the least expensive but it really depends on the location and how popular the food is.

You’re able to walk to restaurants around the South Congress, East Austin, and Downtown neighborhoods.

On average, prices are typically lower than in major cities in Texas like Dallas and Houston but more comparable to a city like San Antonio.

Everyday Lifestyle Expenses in Austin

The music capital is well known throughout Texas for its annual music festivals, outdoor recreation, and holistic living.

There are plenty of free options to enjoy like walking around Lady Bird Lake or enjoying a casual picnic at Zilker Park. However, added monthly expenses can increase quickly with subscriptions to the area's many gyms, fitness studios, or co-working spaces.

It’s fairly easy to spend money every weekend attending the different social events around town. This is especially true when events like SXSW come to town.

You’ll also find yourself drawn to a weekly brunch or coffee shop visit. You’ll need to budget in advance so you don’t end up overspending on all the fun activities around Austin.

Tips for Managing Living Costs In Austin

While living in the city, I discovered a few secret tips for managing your expenses for rent, transportation, food, and activities.

Affordable Neighborhoods in Austin

The city has changed drastically in recent years and the neighborhoods that were affordable when I first moved to town have become more expensive.

The more affordable areas of Austin are typically around the southern, southwestern, and Eastern city borders. Neighborhoods like Garrison Park, Franklin Park, Montopolis, and East MLK are more realistic for single living or small family accommodations.

Of course, the further you go from the city center, the fewer venues and establishments you have access to. It’s still a relatively short drive into town if you have a vehicle or a long bus ride using public transportation.

Austin Neighborhoods Known for Higher Living Costs

The social and lifestyle benefits of living closer to the city’s popular hot spots bring many advantages, but you’ll pay a higher rent cost for the convenience.

Downtown, South Congress, the Domain, and East Austin are filled with nightlife, restaurants, and employers. You can practically walk to get everything you need. Of course, that means that rent prices are higher and many of the apartments around these areas are newly built.

You’ll also have to deal with more foot traffic and noise in these areas since it’s where most tourists visit when they come to town.

Although not as expensive, you’ll still pay higher rent prices in neighborhoods like South Lamar, Bouldin Creek, and Hyde Park.

Choosing Between Central Austin and Suburban Living

The big choice when moving to Austin is whether or not you want to be where all the action goes down.

Places like Downtown, South Congress, Central Austin, Zilker Park and East Austin are constantly busy year-round. It’s also where a lot of activities are centralized when music festivals come to town like ACL or SXSW.

These areas give you the quintessential Austin experience but they are also considerably more expensive.

Your best bet for managing costs is to move to a location near Windsor Park or Parker Lane. You’re still close enough to the city but far enough in the suburbs, where prices are more manageable.

Choosing Public Transportation

While Austin’s affordable bus system is active, it isn’t nearly as big as cities like Dallas or Houston. The inexpensive tickets are appealing but if a bus breaks down or gets delayed, you could be waiting a while. They also tend to take at least twice the amount of time it would take to drive anywhere in the city.

Another good option to managing gas prices or public parking fees is to park a little further from your location and rent an electric scooter or bike. Austin is filled with these rentals all over time, making it convenient to ride into the city without worrying about parking.

I personally purchased a scooter for a fraction of the cost of a car and it worked well for traveling short distances around Austin. It was also a huge saver on gas every month.

The commuter rail station is another good option and connects Leander to downtown Austin with nine intermediate stations. There is free parking at some of the suburban stations and it runs every day except on Sundays.

The Full Cost of Living in Austin

Living in Austin in a wonderful experience filled with music, culture, and fun events year-round. Housing costs is the biggest factor to consier but you’ll also need to add on transportation costs, groceries, and entertainment.

On average, I budget around $2,000 - $3,000 for monthly expenses. Renters who carefully research neighborhoods to find the best value or choose to live with roommates will benefit the most. Search apartment costs in different Austin neighborhoods using Apartmenthomeliving.com to find a home that fits your lifestyle and your budget.