Is Austin, TX Affordable for Renters? [2025]

Yes, Austin is affordable for renters in 2025 compared to 2024, and has been cooling off after a post-pandemic boom. The average rent in Austin in Austin dropped 6.1% over the past 12 months, bringing the overall median rent down to approximately $1,297 from $1,381. Compared to the national median rent of $1,401, Austin renters are paying about 7.4% less for apartment rentals.
Austin is among the biggest declines among major U.S. cities, with some calling it a “collapse in rent prices.” Apartment developers are slowing the pace of construction, existing listings are taking longer to fill, and landlords are even offering concessions and move-in specials again. Looking ahead, CoStar forecasts that median asking rent in Austin will finish 2025 at about $1,557, roughly back to pre-pandemic levels .
What Are the Current Trends in Austin’s Rental Market?
Austin’s rental market is shifting quickly. After peaking around $1,726 in 2021, median rents have dropped to about $1,381 as of July 2025. That makes it the biggest rent decline among major U.S. metros. Vacancy rates have also climbed, which puts more negotiating power in renters’ hands.
Austin’s wave of new apartment complex construction over the last few years has slowed, and perks like a free month or waived application fees are back on the table. It’s expected for rents to stabilize or inch back upward later in the year as new supply eases up.
There’s good news for renters looking for relief in one of the country’s previously most expensive markets. Austin’s rental scene is officially in correction territory after a wave of new apartment supply pushed vacancy rates near 10%, forcing landlords to offer steep concessions. Rents are expected to continue falling through the end of the year and analysts anticipate a modest rebound in 2026 as the market starts to rebalance.
Average Rent Prices in Austin, TX
The average rent in Austin varies depending on the size of the apartment and the area. Here’s the current snapshot from July 2025:
Bedrooms | Austin Median Rent Price | National Median Rent Price | Savings vs. National (%) |
---|---|---|---|
Studio | $1,281 | $1,281 | 0% |
1-Bedroom | $1,489 | $1,401 | 6.30% |
2-Bedroom | $1,726 | $1,758 | -1.80% |
3-Bedroom | $2,527 | $2,128 | 18.70% |
Our data shows you can save by choosing a smaller unit or looking slightly outside core areas, but premium spots and larger units align closely with national mid-sized norms.
What is the Average Rent of a 1-Bedroom Apartment in Austin?
As of July 2025, the average cost for a 1‑bedroom apartment in Austin is $1,527. Final rental prices depend on factors like building age, downtown adjacency, and extras like parking or amenities.
What is the Average Rent of a 2-bedroom Apartment in Austin?
A two-bedroom apartment in Austin will cost an average of $1,928. These units are a popular choice for roommates or small families looking for more space at a cost still competitive with national averages.
How Much Rent Can I Afford in Austin?
Median rents in Austin run below the national average, giving renters solid value. Here’s how Austin’s apartment prices stacks up in 2025:
City | Average 1-Bedroom Rent | Cost of Living Index* |
---|---|---|
New York, NY | $4,929 | 172.5 |
Los Angeles, CA | $2,601 | 161.7 |
Austin, TX | $1,527 | 129.1 |
Atlanta, GA | $1,839 | 113.3 |
Seattle, WA | $2,397 | 158.1 |
Birmingham, AL | $1,494 | 87 |
*Cost‑of‑Living Index: U.S. = 100; Austin scores ~129.1 data sourced from BestPlaces.
Compared to coastal cities, Austin offers a sweet spot. It’s true that its cost of living is higher than parts of the Midwest or South, but at a fraction of what you'd pay in New York or San Francisco. When you move to Austin, you gain big-city perks without the ultra-high rent.
The 30% Rule
When you’re looking for an apartment, it’s important to stick to a realistic budget. The 30% rule is a long-standing guideline. The goal is not to spend more than a third of your pre-tax income on rent. So if you earn $80,000 a year before taxes, you should aim to spend no more than $2,000 a month on rent.
In a fast-growing city like Austin, where rental prices swing dramatically from one neighborhood to the next, this rule is more of a starting point than a hard limit. Think of it as a general target that allows for some flexibility depending on your lifestyle, priorities, and where in Austin you want to live.
The 50/30/20 Rule
An alternative budgeting method many Austinites use is the 50/30/20 rule: 50% of your take-home pay goes to essentials like rent, groceries, and transportation; 30% covers wants; and 20% goes toward savings or debt. Since rent falls under that 50% needs category, you'll need to factor in other essentials when planning your budget. This approach gives you more flexibility than a flat rent cap and helps you manage your cost of living in Austin without sacrificing long-term goals.
The 3x Rent Rule
Here’s a popular standard many Austin landlords rely on: your monthly income should be at least three times the rent. That means you’d need to earn $6,000 a month to qualify for a $2,000 apartment. It’s a quick way for property managers to gauge financial stability. But if you fall a bit short, don’t panic. A combination of solid references, a strong rental track record, offering a larger security deposit, and signing with a guarantor can sometimes sway approval in your favor.
How Does the Overall Cost of Living in Austin Compare to the National Average?
Overall, Austin’s cost of living is about 29.1% higher than the U.S. average. Housing remains the most significant expense. Housing is about 89% above the U.S. average while apartment rentals are, which is still an overall 5.8% above the national average. The median home cost in Austin is $577,400, compared to a $338,100 median in the U.S.
Other categories like groceries and healthcare are priced right at or slightly below average. For example, according to MIT living wage data, groceries cost the average adult $4,231 a year and healthcare runs $3,133. Transportation will run $10,197 a year.
Are Utilities and Other Expenses Affordable in Austin?
Utilities in Austin will add to your monthly budget. Electricity costs around $190 a month, and gas bills run about $60. Water tends to be more affordable than in many other major cities at roughly $56, and fuel costs are lower than the national average. Overall, you won’t pay outrageous fees for utilities in Austin.
Location | Avg Electricity Cost | Avg Gas Cost | Avg Water Cost | Avg Fuel Cost | Avg Total Cost |
---|---|---|---|---|---|
Austin, TX | $189.62 | $59.63 | $55.72 | $1.53 | $306.49 |
Texas | $168.22 | $32.01 | $51.60 | $0.79 | $252.62 |
U.S. | $150.93 | $51.12 | $45.52 | 5.57 | $253.14 |
Overall, renters in Austin should budget around $306 per month for standard utilities, including electricity, gas, and water. Renter’s insurance is commonly required but typically costs just $15 to $25 a month. If you drive, be prepared to add on $100 to $200 for parking in central areas, and car insurance in Texas tends to be higher than the national average. Austin remains very car-dependent, and those without access to reliable transit may find transportation to be one of their biggest recurring costs.
How Does the Cost of Renting Vary By Neighborhood in Austin?
Where you live in Austin can significantly impact your rent. Here's how some of the city’s neighborhoods stack up:
Area | Starting 1-Bedroom Rent | Starting 2-Bedroom Rent | Best For |
---|---|---|---|
Downtown Austin | $1,199 | $1,450 | Best for professionals who want walkability, nightlife, and urban energy |
Mueller | $1,112 | $1,735 | Best for families and young professionals seeking parks, schools, and cafes |
South Lamar | $999 | $1,260 | Best for creatives and locals who want bars, food trucks, and quick commutes |
Hyde Park | $899 | $1,350 | Best for students and academics who want quiet charm near UT Austin |
South Congress | $1,928 | $2,527 | Best for trendsetters who want walkable access to music, shops, and dining |
North Lamar | $1,299 | $1,799 | Best for budget-minded renters looking for diversity and fast freeway access |
Rent in Austin’s Cheapest Neighborhoods
If you’re looking to stretch your budget, you can choose some of Austin’s cheapest neighborhoods. They may be farther out or require some compromises. Make sure any area you choose has a good crime score and is safe for your lifestyle, whether that’s hitting the bars at night or biking around town by day.
Neighborhood | 1-Bedroom Average Rent | 2-Bedroom Average Rent | % Below Average Austin Rent | Best For |
---|---|---|---|---|
North University | $1,259 | $2,350 | 18% | UT students and faculty who want walkability and campus access |
North Austin | $1,046 | $1,344 | 29.80% | Budget-conscious renters who want suburban calm with quick freeway access |
Windsor Hills | $1,114 | $1,652 | 25.20% | Families and long-term renters who want space and quiet in Northeast Austin |
North Lamar | $1,039 | $1,236 | 30.20% | Renters seeking low prices, cultural diversity, and fast commutes |
North University
Tucked just north of campus, North University blends academic energy with old-school Austin charm. This walkable enclave is packed with old-school bungalows, leafy streets, and low-rise apartments that attract students, professors, and longtime locals alike. Coffee shops, bookstores, and vintage spots line the quiet corridors, while UT Austin is just a bike ride away. Renters here enjoy the rare combo of convenience, character, and calm. Locals also have easy access to Hyde Park, Central Market, and late-night eats that never disappoint.
North Austin
North Austin is where convenience meets square footage. With areas like North Burnet and Gracywoods seeing steady growth, it’s a top pick for renters who want space to spread out, and without getting too far from the action. You’ll find newer apartments, tech-driven job hubs, and some of the city’s best hidden-gem restaurants. It’s less hustle, more livable that’s and often easier on your wallet than downtown.
Windsor Hills
Windsor Hills flies under the radar—but savvy renters know it’s a solid find. Tucked in Northeast Austin, it offers big backyards, mid-century feel, and prices that won’t make you flinch. It’s a quieter pocket with quick access to I-35 and 290, making commutes easy and rent checks less painful. If you’re into space, savings, and a neighborhood that feels lived-in (in a good way), Windsor Hills is worth a look.
North Lamar
North Lamar keeps it practical. It’s one of the more affordable spots in Austin, with older apartments and duplexes that offer plenty of space for the price. The neighborhood’s packed with international grocery stores, taco trucks, and hidden food gems, all just a quick drive from downtown or The Domain. If you’re into value and variety, North Lamar delivers without the thrills or fuss.
Rent in Austin’s Most Expensive Neighborhoods
Despite Austin’s declining rents, there are plenty of affluent areas where you can spend a bundle to live near nightlife and enjoy the best amenities. Take your pick of walkable streets, live music, pub crawls, dining, outdoor fun, and more. If you’re wondering what high rental prices get you in Austin, here are some of the city’s most expensive neighborhoods.
Neighborhood | 1-Bedroom Average Rent | 2-Bedroom Average Rent | % Above Average Austin Rent | Best For |
---|---|---|---|---|
Barton Creek | $1,527 | $1,928 | 3% | Renters who want quiet hill country living near Zilker Park |
Downtown | $3,083 | $4,910 | 107.10% | Professionals seeking nightlife, skyline views, and car-free living |
Allandale | $1,937 | $2,203 | 26.80% | Families and professionals looking for charm, green space, and top AISD schools |
Westlake Hills | $1,527 | $1,928 | 2.60% | Renters prioritizing elite schools, privacy, and upscale tranquility |
Barton Creek
This upscale West Austin is known for its luxury homes, trails, and next-level peace and quiet. Think gated communities, golf course views, and rent prices to match. Barton Creek pulls in renters who want privacy and proximity—just 20 minutes from downtown but a world away from the hustle. With top-rated schools, Hill Country views, and easy access to outdoor escapes, it’s where high-end living meets laid-back Austin.
Downtown
Right in the heart of the city, Downtown Austin delivers high-rise living, skyline views, and unbeatable walkability. It’s the epicenter of nightlife, live music, and tech headquarters—all packed into a dense, energetic grid. Renters here trade square footage for convenience, with everything from rooftop pools to food truck courts just steps away. If you want luxury amenities, car-free commutes, and front-row access to everything the city has to offer, Downtown Austin should be at the top of your apartment hunting list.
Allandale
Situated in North Central Austin, Allandale offers a family-friendly edge. Known for its mid-century homes, shaded sidewalks, and pocket parks, it’s a neighborhood that balances comfort with convenience. Renters here enjoy quick access to grocery stores, coffee shops, and local spots like Barley Swine and Yard Bar. With highly regarded public schools and a close community, Allandale is ideal for those who want suburban calm just minutes from the city core.
Westlake Hills
Perched just west of Lady Bird Lake, Westlake Hills is where Austin’s hill country elegance meets top-tier living. Known for its sweeping views, private drives, and award-winning Eanes ISD schools, it’s a haven for renters who want space, quiet, and serious curb appeal. Rents are steep, but so are the perks. If you want sunset patios, nature preserves, and a straight shot to downtown via Loop 360, you need to find your next place in Westlake Hills.
What is a Comfortable Salary for a Renter in Austin?
To comfortably afford the average rent in Austin, most experts recommend earning at least $51,064 a year. This aligns with MIT’s estimate of a livable wage in Austin, which is $24.55 an hour. This figure accounts for the basics, like food, shelter, and medical care.
You’ll want to earn more or take on a side hustle to enjoy a thriving Austin lifestyle with all the nightlife. Of course, you can get by on less if you live a frugal lifestyle, choose a smaller unit, or want to team up with roommates. Ultimately, a “comfortable” salary depends on your financial goals, lifestyle preferences, and how much you’re willing to trade location for affordability.
Are There Hidden Costs to Renting in Austin?
There are hidden costs anywhere you move, including Austin. Don’t forget to budget for the application fee, a security deposit, and sometimes first and last month’s rent. Some apartment complexes also charge an admin and processing fees. Utilities, internet, and (sometimes) renter’s insurance is also part of your monthly budget.
- Renter’s Insurance: Renters’ insurance isn’t mandatory in Texas, but your landlord may require it. Even if it’s not required, you should get it anyway since it’s only around $25 or less and will protect you from personal belongings, liability, and additional living expenses.
- Application + Admin Fees: Application and admin fees are around $30 to $150 per application, per adult and another $100 to $200 to cover the paperwork shuffle.
- Parking + Amenities: Dedicated, secure parking could tack on another $90 to $350/month, depending on if it’s a small add-on to your rent or you need to find a secure location somewhere else. Some buildings also charge extra for perks like gyms or pools, so that’s worth asking about up front.
- Pets: If you want to bring along your dog or cat, a refundable pet deposit of $100 to $600 and non-refundable fees of $250–$500 are also required. Some landlords also charge monthly pet rent of $10–$60. Yep, even your dog will have to pull their weight and chip in for rent.
- Moving Costs: A local move in Austin will cost around $300 for a studio apartment to $1,600+ for a 3-bedroom. If you want to rent a truck yourself, expect $30 to $100 each day, plus mileage and gas. You’ll also need to pay for movers’ tips, or if you take a DIY approach, don’t forget the boxes and bubble wrap.
- Security Deposits: There is no legal limit on the amount a landlord can charge for a security deposit in Austin, but you can expect it to be one month’s rent, so plan ahead.
What Are the Best Ways to Save on Rent in Austin?
When the cost of living and inflation is high, saving on the average rent in Austin is a must. Here are some smart strategies to stretch your budget without sacrificing comfort or convenience.
1. Look Into Rental Assistance
Check out programs like the local government’s Austin’s Affordable Housing online tool and local nonprofits. You might be able to secure help with rent, deposits, or emergency support.
2. Negotiate Your Lease
If your credit is sparkling and you earn a steady income, use it to negotiate your rent. Landlords might also agree to reduce your security deposit, waive your application fee, or lower your rent in exchange for signing a longer lease.
3. Find a Roommate
Splitting rent and utilities with a roommate is one of the fastest, most effective ways to cut down on your housing costs. Before you jump into a roommate situation, pick someone reliable and set ground rules upfront, including how to pay for utilities and deal with overnight guests and cleaning.
4. Focus on Location Over Extras
Instead of getting enticed by those extras like a dazzling rooftop, pet area, and trendy lounge, focus on location instead. It’s a better investment in the long run and saving the money will make your life more comfortable in the long run.
5. Save for Upfront Costs
Set aside savings as soon as possible so you can jump on a good apartment. Everything from security deposit to application fees and moving expenses will quickly add up. Having the cash will offer more flexibility.
6. Know Your Rights
It’s important to understand your rights as a tenant and resources available if you’re in danger of eviction. Check out resources from the Department of Community Affairs to stay informed.
Find an Apartment in Austin, TX
Making the move and finding an apartment in Austin doesn’t have to lead to being overwhelmed by scrolling sky-high prices. Whether you’re drawn to the cultural buzz of East Austin, the picture-perfect parks of Zilker, or the quieter charm of Austin’s neighborhoods like Allandale or Windsor Park, there’s something for every lifestyle and income level. The tumbling average rent in Austin will give you more flexibility to explore the market.
Ready to make your move? Apartment List’s personalized quiz, you can find apartments in Austin that match your budget, must-haves, and timeline. With us, you’ll spend 5 minutes and save 50 hours searching.
Is Austin Affordable for Renters? FAQs
Is Renting Cheaper Than Buying a Home in Austin?
Yes, renting is typically cheaper than buying a home in Austin—especially in the short term. While mortgage payments can rival monthly rent, buying also comes with major upfront costs like down payments, taxes, insurance, and ongoing maintenance. Unless you plan to stay long-term, renting usually offers more financial flexibility.
Is Austin’s Rental Market Competitive?
Yes, Austin’s rental market remains competitive. Despite recent rent drops, demand is strong and listings in desirable areas still go quickly. To improve your chances, have your documents ready and act fast when you find a place that fits.
What’s a Livable Wage in Austin?
A livable wage in Austin is about $24.55 per hour, or roughly $54,700 per year. This estimate from MIT covers basic needs like housing, food, healthcare, and transportation for a single adult without dependents.
What If I Can’t Afford Rent in Austin, TX?
If rent in Austin feels out of reach, consider getting roommates, looking in more affordable neighborhoods, or timing your move during off-peak months. You can also explore rental assistance programs or use Apartment List to find places within your budget.
Are Utilities Typically Included in Rent in Austin?
No, utilities are usually not included in rent. Most Austin renters pay separately for electricity, water, gas, and internet. Some buildings may include water or trash, so always ask during your apartment search.
When Is the Best Time to Rent an Apartment in Austin?
The best time to rent in Austin is between October and February. During this off-season, rents are typically lower and landlords may offer concessions like reduced deposits or free first months.
Does Austin Have Rent Control?
No, Austin does not have rent control. Texas law prohibits cities from regulating rent prices, so landlords can increase rent with proper notice.
What’s the Average Security Deposit in Austin?
Most landlords in Austin charge a security deposit equal to one month’s rent. However, the exact amount can vary based on credit history or lease terms.
Are Furnished Apartments Common in Austin?
Furnished apartments are available but not common in Austin. They’re more likely to be found in short-term rentals, corporate housing, or luxury developments.
Can I Negotiate Rent in Austin?
Yes, you can often negotiate rent in Austin—especially during off-peak seasons or in buildings with vacancies. Strong credit, a solid rental history, or a longer lease can improve your leverage.
Is Public Transit a Viable Option for Renters in Austin?
Public transit is limited in Austin and varies by neighborhood. While CapMetro serves several central areas, most renters still rely on personal vehicles for daily commuting.
How Much Should I Budget for Utilities in Austin?
Plan to spend around $300–$325 per month on utilities in Austin. This includes electricity, gas, water, and internet, though air conditioning costs can spike in the summer.
Do Apartments in Austin Include Utilities?
Most apartments in Austin do not include utilities. Occasionally, landlords cover water or trash, but tenants are typically responsible for electricity and internet.
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