Is 100k good for Austin?
Austin, Texas, has recently transformed into one of the country's most popular destinations, with a rich culture, a thriving job market, and a very high standard of life. However, the popularity of the city is bringing higher living costs. One of the questions that creep in for sure, when you think of moving to Austin, is whether that $100,000 might finally be enough to pull off comfortable living in such a vibrant city.
Cost of Living in Austin
Now, the only question that remains: is this a good enough salary in Austin? To start answering this question, it is important to get to know the living costs of the place. As of May 2024, Numbeo's data on the cost of living put that of living in Austin at about 1% higher than the national average. Although this may not sound very high at first glance, the cost of housing, in particular, shoots way above average in Austin compared to most other places in the country.
The median home price in Austin is in the mid- to high $500s, and a two-bedroom apartment rents on average at about $2,160 per month. These high costs of housing can quickly eat into even a six-figure salary. However, it's worth noting that the level of salaries paid out in Austin is also higher than the national average; the average annual salary is at approximately $60,260.
Examining a $100,000 Salary
So just how far will $100,000 stretch in Austin? According to CNN Money's cost of living calculator, $100,000 in Austin translates to about $96,000 in an "average" city. It wouldn't exactly fund a high-roller life, in other words, but it sure would be a nice salary.
A salary of $100,000 a year will let you comfortably afford median-priced home payments in Austin, where it will allow you to have room to spend about $2,500 on monthly mortgage payments (assuming a 20% down payment). Otherwise, you could rent a cozy flat in a great neighborhood of the city and still have plenty of spare room in your budget for other spendings.
Remember, the above is just a guesstimate, and the actual cost of living will depend on your lifestyle and spending habits. If one enjoys dining out often in any of the world-renowned restaurants all over Austin, regularly attends concerts and festivals, or has some outrageously expensive hobbies, then the cost can be much higher. Do not forget about the other quite essential spending for things like Austin cleaning service, utilities, transportation, and healthcare.
Quality of Life on $100k
What is nice about Austin, TX is the fact that, while it has a high cost of living, one really gets value for his money in terms of quality of life. Austin is a great city in the area of an outdoor playground filled with parks, trails, and lakes. World-class museums, theaters, and plenty of live music venues display a city filled with art and culture.
With a salary of $100,000, one can humanly live in Austin. You'll easily be able to afford dining out regularly, catching shows at the Austin City Limits Live at Moody Theater, or maybe visiting the Texas Hill Country every weekend. You would also have the best of medical and educational facilities, with top-rated hospitals and schools lying in the area.
Job Market Outlook
Of course, one would still have to find a job that pays at the $100,000 level if they would want to make $100,000 in salary, but at least there is such a possibility. Thankfully, several opportunities in Austin can offer just that. From the tech companies to healthcare, education, and even government.
The top employers in Austin are some of the biggest establishments the world over, and they include Apple, Dell, IBM, University of Texas at Austin, State of Texas, and others. The city is synonymous with the booming tech scene, where even the top giants—Google, Facebook, and Amazon—all have bases or a piece of the pie in Austin.
According to the Austin Chamber of Commerce, the median techie wage in the area is about $95,000, certainly putting me somewhere in the region of $100,000 with the overwhelming numbers. Other high-paying industries such as healthcare, finance, and professional services are also available in Austin.
Saving and Investment in 100k
A salary of $100,000 should be quite comfortable to live in Austin, with a lot of room left for splurging. However, there were ways that one had to be wary of spending and invest more into the future. Given that Austin is an expensive city, it is very easy for lifestyle inflation to creep in, and before he or she knows it, on a six-figure salary, one is living from paycheck to paycheck.
Experts suggest that at least 20% of your income should go into your long-term needs, like retirement, and 3-6 more month's worth of expenses into an emergency fund. This would translate to $20,000 per annum or approximately $1,700 a month based on a $100,000 salary.
Automated contributions into a 401(k) or IRA are a way of making savings easy. Some of your paycheck would go directly into savings before you had a chance to spend it. You may also want to look at another possible investment in index funds or real estate that may prove beneficial over time.
Now, is $100,000 a good salary in Austin?
The answer gets only one: a resounding "Yes." While the cost of living might be high over the national index, a six-figure salary definitely more than takes care of daily living and leaves plenty for playing around and generally having fun in Austin.
With the median home in the $500s, Austinites can seize a great number of high-paying jobs within a great place to launch and sustain one's career and life. Just make sure that you budget well, save for the rainy days, and make sure to use the many facilities in the city, including good cleaning services Austin to help keep your house tidy amid the busy schedule.
And whether it's an unbeaten economy, dynamic culture, or life quality that allures you to Austin, a $100,000 salary places you on pretty solid ground to enjoy life in this animated city.