Is It Affordable to Live in Austin, TX?

The Short Answer

For most people, no. With an affordability score of just 36 out of 100, Austin is in a housing affordability crisis. The median home price of $470K requires an annual income of about $135K to buy comfortably — well above what most residents earn.

Housing Costs vs. National Average

Home prices in Austin are 15% above the national median of $410K. Rent is 10% above the national median of $1,500/month.

The price-to-income ratio in Austin is 6.3x, meaning the median home costs 6.3 times the median household income. Financial experts generally consider anything above 5x to be unaffordable.

Income You Need

To comfortably purchase the median home in Austin (spending no more than 28% of gross income on housing), you'd need an annual household income of approximately $135K. The median household income in Austin is $75K — a gap of $60K.

For renters, you'd need about $66K per year to keep rent at or below 30% of income. Currently, 29.5% of renters are cost-burdened (spending more than 30% on rent).

Market Trends

Home prices changed by 1.5% year-over-year, while rents shifted by 0.8%. Price growth is moderate.

Similar Cities to Compare

These cities have similar affordability profiles to Austin: