A Complete Guide From Your Movers in Austin
Whether it’s for work, a change of scenery, or you’re craving access to new types of taco trucks, these are all common reasons that people move to Austin, Texas. Regardless of the reason, you'll need to know just how expensive life will be if you do decide to take that big step into the capital of Texas. Let’s take a deep dive into the cost of living of a city like Austin in the post-pandemic world.
How Much is the Cost of Living in Austin?
Thinking of moving to Austin sometime soon? You are not alone my friend. Austin has become a huge center of growth in Texas, as well as the nation. It has been growing at a seemingly exponential rate in recent years, but despite what you’ve heard on the major podcasts the city’s growth has actually slowed to only a 2.39% increase this past year. This means that the city of Austin is no longer the fastest growing city in America. In fact, Celina, TX has now taken the lead as the fastest growing city in America. I don’t think that I could fill a page on the city of Celina, so I’ll leave that one to someone who can. Austin was all the rave as in recent times, but the word must’ve gotten out on how expensive (and hot) the metroplex is.
How Has The Economy Affected Moving Services in Austin?
Let’s do a quick overview of the housing market as this often determines whether people are moving around or not. America is at a weird place economically right now with high inflation, higher interest rates and rising gas prices at the time of this article being written. These factors influence the real estate market in the sense that they will have less of an ability to save up for a down payment with these economic factors consistently rising.
We’re actually at a 30 year low in terms of home turnover rates. That means that in the past three decades, we’re currently experiencing the lowest number of people buying and selling homes not just in Austin, but all of America. When I take a drive around Austin and its various neighborhoods to check on our movers in Austin at job sites to see how their moves are going, it seems like every 7th or 8th house has a “for sale” sign in front of it. So, what are some reasons as to why people are skipping town?
Let’s take higher interest rates, for example. If someone were to sell their home now, they would likely end up with a much higher monthly payment than what they are currently paying. This can discourage homeowners from moving from their current residence to a new one as they would be put into a more expensive monthly payment. Since home prices have risen so much in recent years, their new home would also likely be a much smaller one for a home value similar to their current one they own. Why downsize for a more expensive home?
Also, in 2020 the average income needed to be able to save up to buy a home was around $53k per year. Now, in 2024, the average annual income needed to save up for a home is around $121k. How in the heck did this happen? This increase in needed salary is due to the increase in inflation we’ve experienced in recent years. According to ChatGPT, during the pandemic in 2020 and up until the time of this article being written in 2024, inflation has increased a whopping 21.20%. That means that on average, commodities and services are about 21.2% more expensive. Quite the pickle we’ve found ourselves in!
Home Prices in One of Austin’s Most Popular Neighborhoods
Take these new economic challenges and couple them with the fact that Austin already had an overpriced real estate market from everyone and their mother wanting to move here.. and the result is a stagnate real estate market. Let’s look at one of Austins’ most popular neighborhoods, for example, the Mueller neighborhood. This area in northeast Austin has increased in value by 99% in the past decade or so. That’s a huge increase in home values!
Good for you if you bought something in this area before the pandemic. I do have some good news for you though, the prices of these homes have steadily been going down this year in 2024. Also, compare the increase in South Congress (SoCo) houses going from the mid $600’s to the $800’s in Austin from the start of the pandemic to 2024. Most every popular neighborhood in Austin is experiencing this same trend.
An increase in interest rates, inflation and home prices have had a huge effect on the number of homes realtors are able to sell as well as interested buyers. Also, the increase in apartment rent that has increased in recent years makes it tough for renters to want to make the transition over to buying as they are unable to save as much money for that 20% down payment. These recent economic changes really are a recipe for disaster for realtors and moving companies in Austin alike.
What Are Utilities Prices Like in Austin?
Utilities prices are actually pretty affordable in Austin relative to other major metropolitan areas in the U.S. If you’re moving here soon and would like to start setting up your utilities, you can use this link to start getting set up. Here’s a breakdown of some of the common costs that you will have to pay if you end up moving to the capital of the Lone Star state.
- Electricity: The average residential electricity rate in Austin is around 10-11¢ per kWh, depending on your household usage. Monthly costs can vary based on your consumption, and there are actually lower rates for high-usage households. Austin Energy is the main game in town when it comes to paying for electricity so you’ll definitely need to read this electricity schedule provided by Austin Energy if you’d like to stay in the know about what to expect for your first electric bill.
- Water: The average monthly cost for water is about $17.20. This rate has climbed steadily over the years due to the increased number of people moving to Austin. The Colorado River and the Highland Lake system (Lake Travis and Lake Buchanan) are the primary sources of public water for the city of Austin. Austin Water treats the city's water and distributes it amongst the people of the city. Stay thirsty my friends.
- Natural Gas: Though you likely won’t need to heat your house except for a month or two in the winter, natural gas is available to help with heating. It’s mostly used for heating up water for showers, cooking if your stove uses natural gas and to dry your clothes if your dryer is powered with natural gas. Monthly costs for natural gas typically range around $17. Is $17 too rich for your blood? In Texas, you can turn the AC off for the entire 2 or 3 month pathetic excuse for a winter we have down here.
Overall Utility Costs: For your average one to two bedroom apartment, expect to pay around $128-177 per month for utilities (including heating, electricity, and gas). If you hire Sarver Movers as your movers in Austin, to move you into a large 4 bedroom house, you can expect to pay anywhere from $400-$500 per month in utilities during the summer. Here’s a pro tip, high quality and energy efficient windows are important to lower your utility bill, especially in the summer.
How Much is Transportation in Austin?
Well that depends on where you would like to go and if you plan to ride in style. We have multiple options that people living downtown can use and even a few options available to people in the surrounding towns and cities. Let’s cover these modes of transportation that are both public as well as private.
- Capital Metro: The City of Austin’s public transportation system. Though there is no subway, the MetroRail system has one line, the Red Line, which goes from Leander to downtown Austin and back. It costs $3.50 and usually runs on time. Plans are in place to add two more lines, the Orange and Blue Lines, to help reduce traffic in the city.
- RideShare Apps: While Uber and Lyft left Austin in May 2016 due to stricter regulations, smaller apps like RideAustin and Fasten stepped in. However, after a statewide law passed in May 2017, Uber and Lyft returned to Austin under more lenient state regulations.
- E-Scooters: A popular mode of transportation, especially in the downtown area. Be cautious though—riding an e-scooter under the influence can lead to a DUI in the downtown area.
- Pedicabs: Pedicabs are a great option for short distances in downtown Austin , such as hopping between bars on 6th Street. However, they are not a practical solution for longer commutes.
- Gas Prices: Gas prices have significantly increased, impacting public transportation, rideshares, and everyday commuters. Since 2020, gas prices have risen by 47%, peaking at $4.67 in July 2022, but they have since stabilized around $2.82 per gallon.
As you can see, the prices to get around town have gone up significantly in the past couple of years, but it’s not all gloom and doom as the prices seem to be leveling off. And the transportation, along with traffic, seem to be getting better. Traffic in Austin isn’t as bad as LA or Houston, but it certainly is in the running for the worst traffic in the state of Texas at least. If you get a chance I highly recommend taking a pedicab, simply for the joy and experience of it as a stylish way to get around downtown. If you’re not sure how to pick your pedicab driver, find one that’s playing your favorite type of music from the boombox attached to the back of the pedicab, as that will make for an even better riding experience.
What Are Grocery and Dining Out Prices Like in Austin?
On average, grocery costs in Austin are generally slightly above the national average. Following is a list of some grocery staples:
- Milk (1 gallon): Around $3.50 in Austin compared to the national average of $3.25.
- Eggs (1 dozen): About $3.20 in Austin, while the national average is $3.10.
- Bread (1 loaf): Roughly $3.00 in Austin, similar to the national average.
- Chicken (1 lb): Costs around $4.50 in Austin, while the national average hovers around $4.00.
The national average cost of dining out for a mid-range meal is about $15-$25 per person. Austin is now known as being a foodie city, famous for its BBQ, Tex-Mex, and a growing farm-to-table movement. Following is an overview of average dining costs for these Austin popular dining options:
- BBQ: A meal at popular BBQ joints (like Franklin Barbecue or La Barbecue) can range from $15-$25 per person, depending on the type of meat and sides. Brisket or ribs tend to be on the higher end, while pulled pork and sausage are usually more affordable.
- Tex-Mex: Dining out at popular Tex-Mex spots (such as Matt's El Rancho or Chuy's) typically costs about $12-$18 per person, depending on whether you're ordering tacos, enchiladas, or fajitas.
- Farm-to-Table: At higher-end, farm-to-table restaurants (like Odd Duck or Emmer & Rye), you can expect to pay around $20-$40 per person for a meal, reflecting the use of locally sourced and organic ingredients.
Overall, while grocery prices are slightly higher than the national average, the difference is generally minimal compared to other major U.S. cities. And if you choose to dine out, don’t fret - Austin has affordable options, as well as more expensive fine dining options for those special occasions.
What Are The Tax Implications of Living in Austin?
Nine times out of ten, wherever you’re moving from will not have as favorable of a tax situation as living in Austin, Texas. This is a state and city that are well-known for how easy it is to do business. Austin’s tax rates have remained relatively consistent since 2020, with just a few changes, particularly in property taxes.
The great state of Texas does not have a state income tax, which is a major benefit for residents and may come as a surprise to people currently living in another state and planning a long-distance move. This means you’ll have more money to tip your movers in Austin! That being said, due to the lack of state income tax, Austin has one of the highest property tax rates, which is about 2.3% of a property’s assessed value. Due to rising home values during the last four years, even though the rate hasn’t changed much, home prices have increased by about 35-40%, which has significantly raised property taxes for homeowners by about 5-10%.
As far as sales tax goes, Texas has a state sales tax rate of 6.25%, and local municipalities like Austin can add up to 2%, making the total sales tax 8.25%. The sales tax rate hasn’t changed over the past four years.
Overall, property taxes have been the main driver of cost increases in Austin from 2020 to 2024, fueled by the city’s rapid population growth and housing market boom. Sales taxes and the absence of a state income tax remain consistent advantages for residents.
Final Thoughts From Your Movers in Austin
As they say in Texas, that’s the whole enchilada when it comes to the cost of living in the city of Austin. We’ve touched on the main areas of expenses that you’ll come in contact with if you do decide to move down to our notoriously weird city. If you ever need movers in Austin, whether you’re coming from another city in Texas or making a long-distance move from another state, we are licensed, insured, and can handle all different types of these moves.
Why wait another day to plan your move to Austin? Get started opening the next chapter of your life by moving down to Austin, and reach out to our team of professional Austin movers for a free estimate today.