When you are trying to decide where to live when you retire, the cost of living is something that you should consider. Austin is not a cheap place to live. The average cost of living is 11 percent more than the national average price.
In Texas, residents do not have to pay an income tax, so this can add up to savings. There are also other ways to save money. Let’s take a look at the other main areas to breakdown the cost of living in Austin.
The prices of homes increased in Austin more than 6 percent last year, and Zillow predicts the prices will continue to rise along with rental rates. The median home value in Austin is $311,700. The average monthly rent in Austin is $1,419 within the city. Outside the city limits, a one-bedroom apartment monthly rent is $1,245, and a two-bedroom apartment rents around $1,562 a month.
Electricity in Texas can be expensive. According to the US Energy Information Association, Texas homes use 26 percent more electricity than the national average with the average annual electricity cost at $1,800. Some utility providers use wind turbines to offer free electricity at night, which can offset your costs if you use appliances like the washer, dryer, and dishwasher during the evening hours.
Austin residents spend about the same as the national average on groceries. Shoppers in Austin pay about $2.17 for a gallon of milk, $2.50 for a dozen eggs, $10.99 for pizza, and around $15 for meals at an inexpensive restaurant. For two people to eat at a mid-range restaurant, the average cost is $50.
Transportation costs in the Austin area are in line with the national average, accounting for 18 percent of the household spending. Retirees probably spend less as they may only have one vehicle and do not have to drive the daily commute to work. Gas prices average around $1.80 - $2.00 a gallon. A monthly public transportation pass runs $60. Auto insurance rates in Austin are higher than the national average. The average annual premium in Austin is $1,726. Texas is the fifth most expensive state for car insurance. Rates vary based on the type of vehicle, driving record, and the amount you drive.
The cost of senior care is higher in some areas and lower in some areas based on the national average. Assisted living facilities costs are higher in Austin with costs averaging $54,915 compared to the national median of $43,500. Nursing home costs are lower in Austin. The national median cost for semi-private nursing homes is $80,300 and private rooms average $91,250. In Austin, the median costs are $60,225 and $84,315. Adult daycare and home health care services are pretty comparable to the national averages.
When setting your retirement budget, it’s always a good idea to shop around for various rates on utilities, housing, insurance, and food. You can always look to live somewhere close to shops and attractions so you can walk.
Find assisted living in Austin near you.