What is a Comfortable Salary to Live in Austin in 2024?

Austin has been one of the fastest growing cities in the U.S. over the past decade, attracting many new residents with its vibrant culture, strong job market, and high quality of life. But with this growth has come rising costs of living. If you're considering a move to Austin, a key question is what salary do you need to live comfortably in this popular Texas city?

Calculating a Comfortable Salary for Living in Austin in 2024: Housing, Expenses, and Savings

While "comfortable" means different things to different people, we can look at average costs for housing, food, transportation, healthcare, and other essentials to determine a baseline salary that allows you to make ends meet and enjoy some discretionary spending and savings in Austin.

According to Payscale, the cost of living in Austin is 3% higher than the national average as of early 2024.

The biggest driver is housing costs. The median home price in Austin is around $521,000, over 10% higher than Dallas.

Renting a one-bedroom apartment averages $1,862 per month.

To afford housing costs, a good rule of thumb is to spend no more than 30% of your pre-tax income on rent or mortgage.

What You Need to Earn to Live Well in Austin in 2024

For a family of four to live comfortably in Austin, the Economic Policy Institute estimates a household needs to earn around $100,000 per year to cover housing, food, transportation, healthcare, taxes and other necessities.

For a single adult, that drops to around $55,000-$60,000 per year.

Of course, your target salary also depends on your lifestyle and spending habits.

Groceries run about 8-12% cheaper than the national average in Austin.

Dining out can range from $12 for an inexpensive meal to $50+ per person at a nice restaurant.

Utilities and transportation costs are a bit lower than average, while healthcare is slightly higher. Don't forget to factor in income taxes as well.

What Does a Comfortable Income Look Like in Austin?

Based on the data, an individual making at least $60,000 per year or a dual-income household earning $100,000+ can likely live comfortably while covering essential costs, enjoying some dining out and entertainment, and still saving for the future.

Tech and other professional salaries in Austin can top six figures, providing even more flexibility.

Keep in mind the "50-30-20 rule" for budgeting: aim to spend 50% on needs, 30% on wants and discretionary spending, and 20% on savings and debt repayment.

With the median household income in Austin around $86,000, many residents make enough to live very comfortably in this vibrant city.

Consider your own income and lifestyle to determine how much you need.

While Austin's cost of living has risen along with its popularity, it remains more affordable than many other large cities.

With some smart budgeting, a salary of $60k+ for an individual or $100k+ for a family can provide a comfortable lifestyle in one of the most exciting cities in Texas and the U.S. Factor in your own needs and come see what Austin has to offer!