- Austin is 39% cheaper overall than NYC
- Housing savings: up to $30,000/year on rent alone
- Texas has no state income tax — save $7k–$10k more on a $100k salary
- You'll likely need a car in Austin — budget $400–$700/mo if you don't have one
If you're considering leaving New York City for Austin, Texas, you're far from alone. Austin has been one of the fastest-growing cities in the U.S. for the past decade. But how much cheaper is it really? We crunched the numbers using BLS, HUD, and Census data so you don't have to guess.
The Bottom Line: Austin Is 39% Cheaper Overall
New York City's overall cost-of-living index sits at 168.0 (where 100 = national average), while Austin comes in at 103.0. That's a massive gap — roughly 39% cheaper in Austin across all categories combined.
For a household earning $75,000 in NYC, you'd only need about $52,200 in Austin to maintain the same standard of living. That's $22,800 a year back in your pocket — or roughly $1,900 per month.
Housing: Where the Real Savings Hit
The biggest driver is housing. NYC's housing index is a staggering 294.3 compared to Austin's 111.0. In real dollars:
- Studio apartment: $2,890/mo in NYC vs $1,200/mo in Austin (save $1,690/mo)
- 1-bedroom: $3,400/mo vs $1,400/mo (save $2,000/mo)
- 2-bedroom: $4,200/mo vs $1,750/mo (save $2,450/mo)
- 3-bedroom: $5,800/mo vs $2,400/mo (save $3,400/mo)
If you're renting a 2-bedroom, you'll save nearly $30,000 per year on rent alone. If you're buying, use our mortgage calculator to see how much more house you can afford.
Groceries: Austin Wins, But Not by Much
Groceries in NYC index at 116.6 vs Austin's 96.0. That's about 18% cheaper in Austin. For a household spending $780/mo on groceries in NYC, expect around $640/mo in Austin — saving about $140/mo or $1,680/year.
Transportation: NYC's Public Transit vs Austin's Car Culture
NYC's transportation index is 117.3 and Austin's is 94.0. But this comparison is tricky. In NYC, most people rely on public transit ($132/mo for a MetroCard). In Austin, you'll almost certainly need a car — with payments, insurance, gas, and maintenance adding up to $500–$800/mo.
The index says Austin is cheaper, but your actual costs depend heavily on whether you currently own a car in NYC.
Utilities and Healthcare
Utilities are nearly identical: NYC at 109.8, Austin at 99.0. Expect to save around $45/mo. Keep in mind Austin summers mean higher A/C bills — but NYC winters aren't exactly free either.
Healthcare indexes are close too: NYC 111.0 vs Austin 95.0. This translates to roughly $75/mo in savings.
The Tax Advantage
Here's the kicker that the cost-of-living index doesn't fully capture: Texas has no state income tax. New York's state income tax ranges from 4% to 10.9%, plus NYC imposes its own city income tax of 3.1%–3.9%.
On a $100,000 salary, you could save $7,000–$10,000 in state and city income taxes by moving to Austin. See your exact take-home pay in Texas at TaxTakeHome.com.
What Austin Isn't Cheaper For
Let's be honest about the trade-offs:
- Car ownership is essentially mandatory — budget $400–$700/mo if you don't currently have one
- Property taxes in Texas are high — averaging 1.8% vs New York's ~1.7% (but on a much cheaper home)
- Austin's housing costs have risen sharply — it's no longer the bargain it was in 2019
Run Your Own Numbers
Everyone's situation is different. Use the MoveNumbers comparison tool to plug in your actual salary and see personalized cost breakdowns. You can also explore other cities to find the best fit for your budget and lifestyle.
Data sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, HUD Fair Market Rents (2024–2025), and U.S. Census Bureau American Community Survey.