The cost of living is increasing everywhere you turn. It’s determined by basic essentials like housing and food costs, what the average salary is like in a particular location, and how much it costs for things like insurance and childcare. While everything is going up, some places are increasing at slower speeds. This is good news, especially for those in Austin. Compared to other cities around the country, Austin’s cost of living is slightly higher than average, but isn’t increasing as quickly.
In Austin, you can expect to pay more than average for housing, but less than average for food, groceries, and utilities. What you save on your food bill can help you pay for those housing and rental costs. Many people in the Austin area live with family, friends, or roommates to help share some of the financial burden if they need it.
What’s making the costs go up?
Inflation
The biggest driving factor in cost-of-living increases is inflation. Inflation is usually around 2% annually. If your salary increases at a higher rate than inflation, you won’t experience the effects of inflated costs. But if your salary stays the same or increases at a lower rate, then effectively, it’s like your salary is decreasing. In this instance, inflation can be devastating for people who already live paycheck to paycheck.
Supply and demand
A long time ago, young people lived at home much longer than they do now. They would complete college close by and stay living in the same house. Some individuals would only leave after they got married. As these dynamics changed and young people started leaving the home earlier, moving to big cities, and getting their own apartments, it meant the supply of housing decreased while the demand increased.
In high-demand cities like Austin, Texas, this means that housing costs are a bit higher than average. The cost of a single-family home is around $360,000 on average, and the median rental rates are around $1335.
How can you find affordable housing?
There are many affordable housing programs available to people in need. Additionally, some first-time homebuyers can qualify for down payment assistance as well. One of the most difficult challenges with getting into a rental are the high deposits. With a rental, sometimes you need first and last month’s rent plus a security deposit. This can mean you need at least $3,000 in cash.
While this may sound like a small amount to you, for others, it’s more than they can save in a year. One way to afford move-in costs is to look for personal loans in Austin, TX. Once you find and secure housing, you can use this loan to pay for the high cost of move-in fees. With low monthly repayment options, you’ll be able to pay it off quickly.
Another way to make housing more affordable is to rent a room. If it’s just you, you might benefit from renting out a room in someone else’s home. This can be a good option especially for college students who want a home in the city.
Do I need a car in Austin?
If you spend most of your time in the city, the public light rail and buses are more than enough to get you around. However, for those who like to explore outside the city, a car would be necessary. Parking in the city can be limited. It might be more cost effective to rent a car for the occasional weekend trip than it would to own your own vehicle.
What’s the average income?
In 2019, the average income in Austin, Texas was close to $81,000. This was almost $20,000 higher than the average in Texas and across the United States. However, this higher salary is offset by the higher housing costs that go with living in a high-demand metropolitan area.
What are the best jobs in Austin, TX?
Some of the best jobs in Austin include medical professionals, CEO’s, architects, and even some tech jobs. These account for the higher ranges of income in the area. Customer service professionals, small businesses, and others account for the lower and mid ranges. Crypto traders and investors also love this city. People love Austin for the friendly people and the hip vibe. They love the more moderate temperatures that Texas offers as well.