Austin,
Texas
Austin is a boomtown with big opportunities and even bigger price tags. The promise of the 'Silicon Hills' lifestyle is real, but increasingly out of reach for middle-class families.
American Dream Index
Austin, TX
Median Income
$80,000
Median 3BR
$525,000
Rent 2BR
$1,900/mo
Unemployment
3.4%
Population
979K
Median HH Income
$80,000
Median 3BR Price
$525,000
ADI Score
52
Pop. Growth/yr
+2.1%
Unemployment
3.4%
City Scorecard
Hover any card for detailed analysis. Grades reflect the default 2-adult, 2-child median-income household.
Housing Affordability
Median home prices are over 6.5x the median household income, putting ownership out of reach for most local workers.
Housing Affordability — D+
At $525,000 for a median 3-bedroom home and a median household income around $80,000, Austin's price-to-income ratio has soared. Even with a 20% down payment, monthly mortgage costs consume well over 40% of the typical family's gross income. The post-pandemic run-up in prices has cooled slightly, but affordability remains deeply strained.
Jobs & Economy
Austin's tech-driven economy offers strong job growth and above-average wages in high-skill sectors.
Jobs & Economy — B+
With major employers like Tesla, Apple, Dell, and a robust university-adjacent startup scene, Austin's labor market is dynamic. Unemployment sits around 3.4%, and wage growth has been strong, particularly in tech and professional services. However, wages in service, healthcare, and education sectors lag far behind the cost of living.
Schools
Austin ISD offers solid options, but quality varies significantly by neighborhood and district.
Schools — B-
Austin ISD has several highly regarded magnet and specialty programs, and the presence of UT Austin elevates the broader educational ecosystem. However, overcrowding in growing suburbs and equity gaps across the district are real concerns. Families in wealthier zip codes access considerably better-resourced schools than those in eastern Austin.
Healthcare
Healthcare access is adequate but expensive, with costs rising alongside the city's rapid growth.
Healthcare — B-
Austin has reputable hospital systems including St. David's and Ascension Seton, and the healthcare industry is growing. Individual marketplace premiums average around $420/month, and provider shortages in primary care mean wait times are increasing. Uninsured rates remain higher than in comparable metros.
Childcare
Infant care averaging $1,600/month is a major financial burden on working families with young children.
Childcare — C
Texas ranks near the bottom nationally for childcare subsidy availability, and Austin's high cost of living drives childcare costs above the national average. Infant daycare can easily exceed $1,600 per month per child, which for median-income households represents more than 20% of gross income. Wait lists at quality centers are often 12-18 months long.
Safety
Crime rates are above the national average, particularly for property crime, though large disparities exist by neighborhood.
Safety — C+
Austin's crime index of 54 reflects above-average property crime and a violent crime rate that has ticked upward in recent years. The city's rapid population growth has strained public safety resources. Neighborhoods in central and eastern Austin see higher incident rates, while suburbs like Cedar Park and Round Rock are considerably safer.
Walkability & Transit
Austin is overwhelmingly car-dependent, with a walkability score of 42 and limited transit infrastructure.
Walkability & Transit — D+
Despite a growing urban core and some bikeable corridors, the vast majority of Austin requires a car for daily life. Cap Metro provides bus service and a small light rail line, but coverage and frequency fall short for most commuters. Ongoing Project Connect investments may improve transit in coming years, but infrastructure lags far behind the city's growth.
Culture & Lifestyle
Austin's live music scene, outdoor culture, festivals, and dining make it one of America's most vibrant lifestyle cities.
Culture & Lifestyle — A-
Branded 'Live Music Capital of the World,' Austin hosts SXSW, Austin City Limits, and hundreds of local venues. Barton Springs, Zilker Park, and Lady Bird Lake offer exceptional outdoor recreation. A young, creative population fuels a thriving food and arts scene. This cultural richness is a major draw — though gentrification is pushing longtime residents out.
Why people are moving here
No State Income Tax
Texas has no personal income tax, which meaningfully boosts take-home pay compared to states like California or New York. For a family earning $80,000, this can translate to $4,000–$6,000 in additional annual income. It's a real and tangible benefit that partially offsets Austin's high housing costs.
Thriving Tech Job Market
Austin has become a legitimate tech hub with Tesla, Apple, Google, and hundreds of startups operating in the metro. High-skill workers in software, engineering, and finance can command salaries well above the city median. For those in these sectors, Austin offers career opportunity rarely matched outside of San Francisco or New York.
Exceptional Quality of Life
From Barton Springs to the Barton Creek Greenbelt, Austin's natural beauty and outdoor culture are world-class. The city's music, food, and festival scene are unmatched among cities its size. For families who value lifestyle and energy, Austin delivers a unique urban experience.
Strong Long-Term Growth Trajectory
Austin consistently ranks among the fastest-growing metros in the country, and population and economic momentum show little sign of slowing. Homeowners who could afford to buy in previous years have seen substantial equity gains. Infrastructure, universities, and institutional investment continue to grow the city's long-term foundations.
What the boosters don't mention
Housing Affordability Crisis
At a median home price of $525,000 against a median household income of $80,000, the price-to-income ratio is over 6.5x — well above the 3x rule of thumb for healthy affordability. Median-income families are effectively priced out of homeownership in most Austin neighborhoods without significant outside wealth. This is the defining challenge for working families considering Austin.
Car Dependency and Traffic
Austin consistently ranks among the worst cities in the country for traffic congestion, and its limited transit system offers few alternatives for most residents. The average Austin commuter loses hundreds of hours per year to gridlock. Without a car — and the associated expenses — daily life in most of Austin is simply not viable.
Rising Property Taxes
Texas's lack of income tax is partially offset by high property taxes, which in Travis County can run 2.0–2.5% of assessed value annually. On a $525,000 home, that's $10,500–$13,000 per year in property taxes alone — a substantial and often underestimated burden for homebuyers. Reassessments have followed rising home values, creating sticker shock for long-term residents.
Cost of Living Has Caught Up to Wages
The narrative of Austin as an affordable alternative to coastal cities is increasingly outdated. Rent, groceries, utilities, and especially childcare costs have risen sharply alongside home prices. For service workers, teachers, nurses, and others in essential but lower-wage roles, Austin has become genuinely unaffordable, accelerating displacement to suburbs and exurbs.
The Bottom Line
Austin offers real opportunity — especially for tech workers and high earners who can leverage Texas's no-income-tax advantage — but the American Dream of homeownership is increasingly elusive for median-income families. The city's energy and job market are compelling, but housing costs, traffic, and a limited safety net create serious structural headwinds. Families should run the numbers carefully and consider neighboring suburbs like Round Rock or Pflugerville, where costs are meaningfully lower.
Austin ZIP Code Map
Each hexagon represents a ZIP code. Hover for details. Source: FHFA HPI metro-level estimates, HUD FMR, 2024 Q4.
Price Range
Most Affordable ZIPs
Retirement Savings Projection
On Austin's median household income of $80,000, disciplined retirement saving is achievable but requires careful management of the city's high cost of living — particularly housing, childcare, and transportation costs that can crowd out savings.
Austin's high housing costs, property taxes, and general cost of living make hitting 15-20% savings rates genuinely difficult for median-income families, especially those with children, and real-world savings rates for many Austin households fall well short of these targets.
At 15% savings rate
Saving 15% of $80,000 annually ($12,000/year or $1,000/month) over 30 years at a 7% average return yields approximately $1.13 million — a solid retirement foundation, though Austin's high cost of living may require a larger nest egg or relocation in retirement.
At 20% savings rate
Saving 20% of $80,000 annually ($16,000/year) over 30 years at 7% yields approximately $1.51 million — a more comfortable position, particularly if the family can pay off a home mortgage and reduce fixed expenses before retirement.
Make this personal
Enter your details to see how Austin looks for your specific situation — not the median household.
Your Personalized ADI Score
Income
$80,000/yr
Price-to-Income Ratio
6.6x
Monthly Ownership Cost
$3,150/mo