Cost of Living

Texas consistently ranks as one of the nation's most favorable business climates based on its low tax burden and competitive regulatory environment. In Texas, aggregate costs for real estate, energy, wages and taxes are below most states in the country.

Compared to other major business centers, Austin is well known for offering affordable living. The National Association of Realtors reports that the median home price in Austin was $263,300 in 2015 while the national median was $223,900. The National Association of Home Builders, which also produces median home price estimates, has similar difference between Austin and the nation. Their fourth quarter 2015 estimate for Austin is $266,000 and the national estimate is $226,000. NAHB estimates that 58.4% of homes sold in Austin are affordable to households earning Austin's median family income – close to the 63.3% national affordability rate.

Texas features no personal or corporate income tax, and overall the state has one of the lowest state and local tax burdens in the nation, ranking 43rd among the 50 states in taxes paid per $1000 of personal income.

Cost of Living Index, 2015 (U.S.=100)

Cost of Living Calculator

Source: The Council for Community & Economic Research, Cost of Living Index.

Median Home Price, Existing Single-Family Homes

  2013 2014 2015 Percent change
2013-2014 2014-2015
Austin MSA $222,900 $240,700 $263,300 8.0% 9.4%
United States $197,400 $208,900 $22,3900 5.8% 7.2%

Median Home Price, 2015

Source: National Association of Realtors.

Average Home Price, 4-Bedroom, 2-Full Bath Homes

Submarket 2015
 Austin $362,030
 Cedar Park $304,574
 Georgetown $304,110
 Kyle $215,925
 Pflugerville $213,797
 Round Rock $268,211
 San Marcos $226,787

Source: Coldwell Banker.

Median Apartment Rents, 2016

  1 bedroom 2 bedrooms 3 bedrooms
Austin MSA $965 $1,204 $1,629
U.S. Metros* $869 $1,082 $1,453

*weighted average of medians for all U.S. metros.
Source: U.S. Department of Housing & Urban Development.

Note: Time series of annual and monthly numbers for home prices and other housing market indicators are updated monthly on the Chamber's Economic Indicators page.

Tax Burden, 2013

  Texas United States
State & local taxes per capita, total $3,750 $4,423
   Property 1,547 1,421
   Sales and gross receipts 1,741 1,518
   Individual income - 979
   Corporate income - 156
   Other 463 348
State and local taxes per $1000 of personal income 87 100

State & Local Taxes Per Capita, 2013

Source: U.S. Census Bureau, State & Local Government Finances.

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