What kind of city is Austin Texas?
What Is It Like to Live In Austin?
In 2022, the Austin metropolitan area was named the fastest-growing in the U.S. for the 12th year in a row, based on a detailed report by City Demographer Lila Valencia.
With so many people moving to Austin, you can’t help but wonder, what kind of city is Austin, Texas?
We asked a family who moved to Austin from Indiana last year about their reason for moving, and here's what they said:
“The decision to come to Austin was largely influenced by prior visits which inspired a deep appreciation of the community, its cultural events, and attractions. Also, my wife and I are both musicians and appreciate the variety of musical offerings. I can't imagine anywhere else in the world I'd rather be.”
The city's rich cultural scene, growing popularity, and economy add extra appeal to its great dining, lively nightlife, quality schools, and abundant outdoor activities.
You might ask yourself, is living in Central Texas's Austin the right city for me? That's for you to determine. We aim to help you consider the pros and cons of living in Austin, Texas—personally, it's one of our top cities.
The Pros of Living in Austin
Pro #1: Live Music Capital of the World
There is a reason why Austin earned the title of “Live Music Capital of the World”
You can enjoy live music every night and attend numerous music and art festivals all year round.
In this city, it’s really easy for you to go out to bars or restaurants and hear people playing music.
Some notable events include the Austin City Limits Music Festival, Besame Mucho Festival, Levitation, and iHeartCountry Festival.
Art is also a big part of Austin's charm, with artwork available at the Pecan Street Festival, the Blanton Museum of Art at the University of Texas, and the Austin Art Garage.
The Austin Studio Tour offers a unique opportunity to meet local artists and explore their studios across the city.
If you love music, art, or just want to immerse yourself in a creative community, Austin is the place to be.
Pro #2: Good Weather Year-Round
Austin enjoys around 300 sunny days, giving it a long summer feel.
In Austin, Texas, summers are hot, winters are short and cold, and it's partly cloudy all year. Temperatures range from 43°F to 97°F, rarely dropping below 30°F or going above 102°F.
Austin is perfect for nature lovers, with endless options for outdoor activities like hiking, biking, kayaking, canoeing, and swimming. It's an ideal city for families who love being outside. The Colorado River runs through Austin, providing plenty of opportunities for fun in the water.
The city offers a wide variety of outdoor activities, and with its pleasant weather all year long, it's almost always a good time to be outdoors. Austinites value the outdoors and are mindful of the environment, making it easy to appreciate living in a city that cares about nature.
Pro #3: Gradually Becoming More Diverse
According to Data USA, As of 2021, 18.5% of Austin, TX residents were born outside of the country (175k people).
The Hispanic and Asian communities have seen significant growth, with the Hispanic population increasing since the 1990s and the Asian population more than doubling.
The following chart shows the 7 races represented in Austin, TX as a share of the total population.
As more people from different parts of the country and world come to Austin, we can expect even more diversity. This mix of cultures brings new ideas and perspectives that make the city wealthier.
Pro #4: It's a Millennial Magnet
According to SmartAsset's study, Austin attracted 103,461 new millennials in 2022.
Millennials are defined as those between the ages of 25 to 44.
Needless to say, Austin is popular among millennials, who make up 40.42% of the city's population—a number that continues to grow each year.
So Austin is a young city and if you are in this demographic then it’ll be relatively easy for you to go out, meet new people, and make friends.
It’s fun to be here in your 20s and 30s because there’s always a new hand to shake and a new adventure to undertake.
Pro #5: Texas Without State Income Tax
One major benefit of moving to Austin compared to say California is that Texas doesn't have state income taxes. This means you get to keep more of your earnings—around 10% more for us!
Additionally, your money goes further than in Silicon Valley. Recognized by Bloomberg, Forbes, and Business Insider as the "next Silicon Valley," Austin is ripe with opportunities.
It has more startups per capita than any other U.S. city, including Silicon Valley, and is a leader in tech jobs and independent business growth. Thanks to the city's economic policies, affordable rent, and booming job market, many startups are choosing Austin over the more expensive Silicon Valley.
The absence of state income taxes is also why many retirees choose to move to Texas, as their savings last longer.
The Cons of Living in Austin
Con #1: A City Designed for Cars
As with any city, there are always good things and bad things about it.
Austin's public transport isn't great so you'll need a car here.
If you're moving to Austin without a car, consider looking for a used one on Facebook Marketplace.
The bus system exists but it's slow, especially for getting around downtown. A trip that takes 20 minutes by car can take hours by bus, and most buses and the light rail stop running early in the evening.
There's a 32-mile light rail with nine stops from downtown to Leander, which could be convenient if you live near a station.
Despite efforts to increase bicycle lanes, driving remains the most common way to get around Austin, though be prepared for significant traffic, especially during rush hour.
Like many big cities, Austin has traffic issues, so it's wise to consider all your options before deciding how to commute.
Con #2: Austin's Growing Cost of Living
Austin's rapid growth is a double-edged sword as it has made housing more expensive. With more people moving in, there aren't enough affordable homes, causing prices to skyrocket for both buying and renting.
A lot of the affordable houses are so far outside of Austin that some people don’t even consider it within the city boundaries. They are detached and far away from the fun and exciting part of Austin.
The city is attracting wealthier individuals, especially with tech companies arriving, leading to a more luxury housing market resembling the West Coast prices therefore making it hard for average earners to find affordable places.
The shortage of affordable housing is a big problem, impacting both locals and new residents struggling with high costs.
Currently, the average Austin home value is $533,719, while the average rent for a one-bedroom apartment in Austin is around $1,439 a month.
Austin became very popular during the pandemic because it was affordable, interest rates were low, and many people were working remotely. It became the top place in the U.S. where people moved in early 2021. However, this influx of new people quickly made house prices soar. By April 2022, the average home price hit $555,000, up 88% from 2019.
Since then, prices have dropped to an average of $424,990, but that's still higher than the U.S. average of $408,732. So, buying a home in Austin isn't as cheap as it used to be.
Because Austin's home prices are higher than the average, fewer people want to buy homes there, which has led to lower prices in 2023.
Selling is hard at the moment, but it's because Austin's market was too hot and is now becoming more normal and reasonable. The city’s real estate market is a victim of its own success, you could say.
Con #3: Lack of Seasonal Variety
Moving to Austin, Texas, means you won't have much of a winter. Whether this is good or bad depends on what you like.
If you are coming from the Midwest or East Coast it can be easy to miss the cold and snow, especially during Christmas, whereas other people can be happy to skip winter weather.
So, it varies from person to person. But one thing is sure: you won't get to see all four seasons in Austin.
The weather in Austin is great for sun lovers but might not be for everyone, especially if you enjoy having four distinct seasons. With climate change, spring and fall are becoming shorter, leading to longer and hotter summers. In recent years, Texas has experienced 50 days in a row of temperatures over 100 degrees.
Austin is the 20th most humid city in the U.S., and the humidity feels even worse when temperatures reach 107˚F. If you have asthma or allergies, you'll likely need to use air conditioning for about five months a year.
However, if you enjoy sunny weather, Austin could be perfect for you. The heat here is relatively dry, not as dry as West Texas, but much less humid than Houston.
Con #4: No Pro Sports Teams
If you like college Football, the University of Texas probably has a strong team in that sport.
However, they don't offer men's soccer, but Austin's new MLS team, Austin FC, does.
If you're from another city like Chicago and you’re really into the NBA or NFL and you want to follow your hometown's major sports team, then you'll need to travel to Houston or San Antonio to watch them play.
Additionally, it might be hard to find a trendy bar in Austin that broadcasts the big games.
Con #5: Steep Property Taxes
As we mentioned earlier in our blog, Texas doesn't have income tax, which is appealing.
However, it compensates for this with high sales and property taxes, making it rank ninth in the country for both.
As a result, Texas's overall tax burden is the 30th highest in the U.S. When considering the state's average healthcare and education systems, the value of living in Texas might not seem as great.
Is Austin a good place to live?
To sum everything up, Austin is a great city. Personally speaking, we think Austin is very good for younger people looking for jobs. Most of the things to do here are geared toward younger folk.
If you can tolerate the cons, then you should definitely move here. But if any of them sound like too much, like the heat, then do not move to Austin.