Austin residents will need to earn significantly more to live comfortably in 2025, according to a new study by SmartAsset. The report reveals that single adults in Austin would need to make $101,587 a year to maintain a comfortable lifestyle, which is $1,830 more than previous salary requirements. The combined income necessary to live comfortably in Austin is $233,376 a year for a family of two working adults and two children.
The study defines a “comfortable lifestyle” as one where 50% of income goes to needs and living expenses, 30% to wants, and 20% to savings or debt payments. This means a single Austinite must allocate $50,794 to living expenses, $30,476 to discretionary spending, and $20,317 to savings or debt. For families of four, the breakdown would be $116,688 on living expenses, $70,013 on discretionary spending, and $46,675 toward savings or debt.
Despite the increase, Austin ranks as the 51st most affordable city out of the 100 most populous U.S. cities regarding salary requirements to maintain financial stability. For context, the median household income in the city was $74,474 in 2023. Several Texas cities are more affordable than Austin for those seeking a comfortable lifestyle.
San Antonio and Houston stand out as the top two cities with the lowest statewide salary requirements. Single residents need to make $86,694 and $90,064, respectively. Indianapolis, Indiana, is the most affordable U.S. city, with residents needing to make $1,515 less than those in San Antonio.
Austin salary requirements increase in 2025
Other Texas cities in the report include Dallas, Irving, and Garland at No. 31, with a required salary of $95,930; Fort Worth and Arlington at No. 34, with a required salary of $96,429; and Plano, Frisco, and McKinney at No.
69, with a required salary of $107,994. Newly released U.S. Census Bureau data has also revealed significant population growth in Texas counties. Caldwell County, which includes cities like Lockhart and Luling, ranked No.
9 among the top 10 U.S. counties with the highest growth rates by percentage, adding 2,323 residents from July 2023 to July 2024, a growth rate of 4.6%. Houston-Pasadena Woodlands nearly led the nation as the second-fastest growing metro area in 2024, adding 198,171 residents and bringing the total population to 7,796,182. Dallas-Fort Worth-Arlington followed closely as the third-fastest growing metro area, gaining 177,922 residents and a total population of over 8.34 million.
Kristie Wilder, a Census Bureau Population Division demographer, stated that the nation’s population growth in major metros was primarily driven by international migration. “While births continue to contribute to overall growth, rising net international migration is offsetting the ongoing net domestic outmigration we see in many of these areas,” Wilder said.
Image Credits: Photo by Alexandra Gorn on Unsplash
