Cost of Living in Austin vs. California: What You’ll Gain (and What You Won’t)

Robert Rutkowski
Apr 10
7 min read

Updated: Apr 17

By Robert Rutkowski – Texas Realtor & Relocation Expert

If you're considering relocating from California to Austin, Texas, you're not alone. Thousands of individuals and families are making the transition each month, drawn by promises of a lower cost of living, a thriving job market, and a lifestyle that balances Southern charm with modern urban energy.

But is the cost of living in Austin truly lower than in California? And what trade-offs should you be prepared for? As a Texas Realtor who has helped many clients relocate from California, I want to offer a clear, professional comparison to help you make a confident, well-informed decision.

Housing: The Most Significant Difference

In California, the median home price in 2025 exceeds $800,000, with rental costs for a three-bedroom apartment often ranging from $3,500 to $5,000 per month in major cities. In contrast, Austin offers a median home price between $470,000 and $520,000, while similar rental properties range from $2,000 to $2,800 per month.

What you gain by relocating is substantial: more square footage, newer homes, larger lots, and in many cases, quicker paths to homeownership. In addition to affordability, Austin offers a mix of newly built communities and established neighborhoods with charm and character. Homebuyers can often find properties with modern amenities such as open floor plans, energy-efficient appliances, and outdoor living spaces.

However, California's coastal properties, ocean views, and temperate climate remain unmatched, and while Austin's real estate market is growing steadily, the pace of appreciation in some California markets has historically been faster. Buyers should also be mindful that while Austin homes cost less, property taxes in Texas are higher than the national average, which can impact monthly mortgage costs.

Another factor to consider is the speed and competition of each market. In California, buyers often face bidding wars and limited inventory. While Austin remains competitive, especially in desirable school districts or proximity to downtown, the process tends to be less aggressive, giving buyers more breathing room.

Daily Expenses: Groceries, Gas, and Entertainment

Grocery prices in California tend to be 15% to 20% higher due to transportation costs, higher wages, and additional state taxes. Organic and specialty items also come at a premium in many parts of the Golden State. In Texas, particularly Austin, food prices are slightly lower, especially when shopping at regional chains such as H-E-B or visiting local farmers markets.

Gasoline prices are another area of significant savings. In California, gas averages between $5.50 and $6.50 per gallon. In Texas, drivers typically pay between $3.00 and $3.80 per gallon. Over time, these savings add up, especially for households with multiple vehicles or lengthy commutes.

Dining and entertainment are essential aspects of quality of life. California offers world-renowned restaurants, high-end venues, and a wide variety of entertainment options. Austin, however, is no slouch when it comes to culture. Known as the "Live Music Capital of the World," Austin features an array of dining experiences, from gourmet restaurants to casual food trucks, and a thriving music and arts scene that rivals larger metropolitan areas. Costs for dining out, concert tickets, and leisure activities are generally more affordable in Austin.

Additionally, many everyday expenses, such as gym memberships, childcare, home services, and personal care, are less costly in Texas. For example, hiring a cleaner or landscaper in Austin can cost 20–30% less than in major California cities.

Taxes: A Clear Advantage in Texas

California imposes a state income tax that can reach up to 13.3%, one of the highest in the nation. Texas, by contrast, has no state income tax, making it an attractive destination for high-income earners, entrepreneurs, and retirees looking to preserve more of their earnings. This difference can translate into thousands—or even tens of thousands—of dollars saved annually.

Sales tax in California starts at 7.25% and can increase with local surcharges. In Texas, the base sales tax is 6.25%, with a maximum of 8.25% in certain local jurisdictions. This creates further opportunities for savings in day-to-day purchases.

However, Texas offsets the lack of income tax with higher property taxes. Depending on the county, property tax rates can range from 2% to 3% of the home's assessed value. It's crucial to consider the full picture when calculating the impact of taxes on your budget. Even with higher property taxes, many Californians relocating to Texas still come out ahead financially due to the elimination of income tax.

Healthcare: Important Differences to Consider

Healthcare is an essential factor for individuals and families, especially those with ongoing medical needs. California offers a broad network of healthcare providers, public health programs, and some of the best medical research institutions in the country. Access to specialists is relatively easy in metropolitan areas, and public health initiatives are well-funded.

Austin, like much of Texas, is continuing to grow its healthcare infrastructure. The city boasts several major hospitals and healthcare systems, including St. David's HealthCare, Ascension Seton, and Baylor Scott & White. The expansion of telemedicine and private healthcare facilities has improved access, particularly in suburban areas.

That said, Texas has fewer public healthcare options, and private insurance may be more expensive, particularly for the self-employed or those transitioning between jobs. Additionally, health outcomes in Texas can vary widely by region, and rural areas often face shortages of providers. For those relocating with families or seniors, it’s important to explore available health plans and proximity to care providers in advance.

Transportation and Commuting

Transportation is a major consideration in both California and Texas. California's major cities, such as Los Angeles, San Francisco, and San Diego, are known for their heavy traffic and long commute times. Vehicle registration and smog compliance fees can also be costly. While public transit systems exist, they are often underfunded or inefficient, leading many residents to rely on their personal vehicles.

Austin is similarly car-dependent, though traffic is generally more manageable compared to California's largest metros. Commute times in Austin can vary significantly depending on your neighborhood, but many suburbs offer quick access to the city via major highways. The city has made strides in developing bike lanes and pedestrian-friendly areas, particularly in neighborhoods like Mueller, South Congress, and East Austin.

Public transportation in Austin, while improving, remains limited. CapMetro provides bus service throughout the city, and a light rail expansion is planned for the coming years. For now, owning a vehicle is still the most efficient way to navigate Austin.

For newcomers, one of the perks of Texas is lower vehicle registration fees and no annual smog checks. Fuel costs, maintenance, and insurance rates are also generally more favorable than in California.

Education: Public and Higher Learning

California has a reputation for strong public schools in certain areas, along with a wide variety of charter and magnet school options. Cities like Palo Alto and Irvine are known for their top-ranked districts, though access to these schools often comes with a high cost of living.

Texas also has many high-performing public school districts, particularly in suburban areas surrounding Austin. Communities such as Round Rock, Leander, Dripping Springs, and Lake Travis are frequently ranked among the best for education. Texas also offers open enrollment and school choice policies, giving parents more flexibility in selecting the right school for their children.

In terms of higher education, California is home to the prestigious University of California system and numerous private universities. Austin, however, is home to the University of Texas, a flagship public research university that draws students from across the globe. UT Austin is highly regarded for its programs in engineering, business, law, and the arts.

Additionally, the cost of higher education in Texas is typically lower for residents, and financial aid options are robust. Students and families moving to Texas may find that college becomes more accessible and affordable.

Lifestyle and Culture

One of the most overlooked aspects of relocating is how lifestyle and culture shift from one state to another. California is known for its diversity, coastal living, progressive policies, and access to a wide range of cultural experiences. From Silicon Valley tech hubs to Hollywood and the wine country, California's culture is vibrant and varied.

Austin offers a different but equally dynamic lifestyle. Known for its live music scene, outdoor recreation, and entrepreneurial spirit, Austin combines the friendliness of a small town with the opportunity of a major city. Residents enjoy kayaking on Lady Bird Lake, hiking in the Barton Creek Greenbelt, and attending music festivals like SXSW and ACL.

The cultural vibe in Austin is open, inclusive, and innovative. Whether you're into technology, the arts, food, or fitness, there's a place for you. While you might miss the ocean and the diversity of global cuisine found in California, Austin provides a growing international food scene and numerous lifestyle benefits at a more affordable price.

Additionally, the pace of life in Austin is generally more relaxed. There’s less hustle and more time for community, creativity, and exploration. For many Californians, that shift in pace is one of the most refreshing aspects of the move.

Final Thoughts

If your goals include reducing your cost of living, increasing your quality of life, and securing long-term financial growth, Austin presents a compelling case. The city offers more attainable housing, keeps more money in your pocket through lower taxes, and continues to attract talent and investment across a variety of industries.

Relocating from California to Austin is not just a financial decision—it’s a lifestyle transformation. Understanding the nuances of both markets can help you navigate the transition successfully.

As a relocation expert and real estate professional, I work closely with clients to evaluate their specific needs, preferences, and financial goals to make their move to Texas as seamless and rewarding as possible. Whether you’re just starting to consider the idea or ready to take the next step, I’m here to guide you through every part of the process.

If you're ready to explore your options in Austin or want help comparing neighborhoods, schools, or investment opportunities, reach out today. Let's find the right home—and the right lifestyle—for your next chapter.