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Living in Austin Texas Pros and Cons: A Local's Honest List

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October 13, 2026

Living in Austin Texas Pros and Cons: A Local's Honest List

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The biggest pros of living in Austin, Texas are no state income tax, a strong job market, amazing food and outdoor life, and buyers finally having room to negotiate on homes. The biggest cons are the summer heat, traffic, high property taxes and home prices that are still higher than most of Texas. As an Austin real estate agent who moved here from the Midwest, here’s my honest list, with real numbers.

Key takeaways

  • Pro: Texas has no state income tax.
  • Pro: Austin passed 1 million residents in 2025, and the job market keeps drawing people.
  • Con: Austin averaged 29 days of 100 degrees or more a year from 1991 to 2020.
  • Con: a $500,000 Austin homestead owes about $8,215 a year in property taxes.
  • Pro or con depending on your side: home prices have come down, and buyers can negotiate.

What are the pros of living in Austin?

No state income tax

Texas has no personal income tax (Texas Comptroller). If you’re moving from a state that has one, that’s real money back in your paycheck every month.

Jobs and growth

Austin surpassed 1 million residents in 2025 (CRE Daily), and big employers keep coming to the metro, from Round Rock to Georgetown. More jobs means more options, especially if you’re relocating for work.

Food, music and the outdoors

Breakfast tacos are a food group. Live music is everywhere. Barton Springs, Lady Bird Lake, Lake Travis and the Hill Country swimming holes are your summer. And there’s always a new restaurant to try. (I’m always looking for a new spicy food challenge I probably shouldn’t finish.)

Mild winters

Austin’s normal January high is around 62 degrees, and a typical year has about 12 freezes (KXAN). Coming from Iowa, I’ll take it.

Buyers have negotiating room right now

In August 2026, the City of Austin’s median home price was $560,000, down 4.3% from a year earlier, with 4.6 months of inventory (Unlock MLS). Sellers are negotiating and builders are offering incentives.

Which pro matters most to you?

Moving to Austin? Text MOVING to 563.650.0452 and I’ll send you my free Austin relocation guide with every neighborhood and suburb broken down.

What are the cons of living in Austin?

The heat

It’s hot. Austin averaged 29 days of 100 degrees or more a year from 1991 to 2020, and the record is 90 days in 2011 (KXAN). Look for shade trees, a covered patio and a newer AC when you shop for a home. And plan your summers around early mornings, pools and lakes, because that is how locals survive July and August.

Traffic and construction

TxDOT is rebuilding I-35 through central Austin in a project running through 2033 (TxDOT). Toll roads help but add up. Your commute should drive where you live.

Property taxes

No income tax means higher property taxes. A $500,000 homestead inside Austin city limits, Travis County and Austin ISD will owe about $8,215 in local property taxes this year (Community Impact). Here’s my full breakdown of Austin property taxes 2026.

Cedar fever

Mountain cedar pollen hits from about December through February. Plenty of people who never had allergies get it here.

Still pricier than most of Texas

Austin homes cost more than a lot of Texas, though the suburbs help. Williamson County’s median was $399,900 and Hays County’s was $355,000 in August 2026 (Unlock MLS).

Why are some people leaving Austin?

Usually cost, traffic or the heat. Some people move a little farther out to a suburb for more space and lower prices, and some leave Texas altogether. In my experience, the people who love it here picked the right neighborhood for their life. The people who don’t often picked a house without thinking about the commute, the taxes or the summers.

Is Austin a good place to live?

For a lot of people, yes, if you go in with your eyes open. Pick your area based on your daily life, budget for taxes and tolls, and visit in August once so you know what you’re signing up for. Start with what to know before moving to Austin and where not to live in Austin Texas.

Austin or the suburbs: which one fits you?

A lot of the pros and cons above change depending on where you land. Here’s the quick version of how I explain it to clients:

  • Central Austin (Hyde Park, Crestview, Zilker, Travis Heights): walkability, character and short drives, with smaller lots and higher prices.
  • North suburbs (Round Rock and Cedar Park, Georgetown, Leander): newer homes, big employers nearby and more space for the money.
  • Northeast suburbs (Pflugerville, Hutto): growing downtowns, new parks and quick access to SH 130.
  • Southwest and the Hill Country (Dripping Springs and Driftwood): land, views and wineries, with longer drives into town.

The heat and the I-35 traffic follow you everywhere, but the taxes, commute and home prices can change a lot from one area to the next. That’s why I always start with your daily life first and the house second. Which area are you leaning toward?

My honest take on living in Austin

I moved here and explored one neighborhood a day until I’d covered the whole city. I know it better than my husband, who grew up here. (He won’t admit it.) Here’s what I’d actually do: make a list of your top three pros and your top three deal breakers, then pick areas that hit the pros and dodge the deal breakers. Austin isn’t one place. It’s a dozen different lifestyles within an hour of each other, and the right one makes all the difference.

FAQ

Is Austin, Texas a good place to live?

For many people, yes. Austin offers no state income tax, a strong job market, great food and outdoor life. The trade-offs are heat, traffic, property taxes and higher home prices than most of Texas.

What are the downsides of living in Austin?

The biggest downsides are long, hot summers, traffic and I-35 construction, high property taxes, cedar fever in winter and home prices above most of Texas.

Why are people moving away from Austin?

Most people who leave cite cost, traffic or the heat. Many move to nearby suburbs for more space and lower prices.

Does Austin have a state income tax?

No. Texas has no personal income tax, but property taxes are higher to make up for it.

How hot does Austin get?

Austin averaged 29 days of 100 degrees or more a year from 1991 to 2020, with a record of 90 days in 2011.

Ready to find your spot in Austin?

Tell me what matters to you and I’ll match you with neighborhoods that fit: fill out my 2-minute buyer questionnaire. Or book a 15-minute call and let’s talk it through. Talk soon!

Connect with Sarah

Sarah Maddali, REALTOR® | Serendipity Realty Group at Compass | 563.650.0452
Serendipity Realty Group is a real estate team affiliated with Compass. Equal Housing Opportunity.

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