Austin vs Tempe

Category-by-Category Breakdown

Index values shown. National average = 100. Lower is cheaper.

💰 Salary Equivalence

To maintain the same standard of living:

See exact take-home pay: Texas salaries · Arizona salaries

Living in Austin vs Tempe

Housing is typically the biggest factor in any cost-of-living comparison. Austin has a housing index of 123 while Tempe sits at 114 (national average = 100). The median home in Austin costs $430,000 compared to $400,000 in Tempe, a difference of $30,000. Monthly rent follows a similar pattern: $1,700 in Austin versus $1,600 in Tempe.

Groceries and everyday expenses show a narrower gap: Austin scores 96 while Tempe scores 100. Both cities are close to the national average for grocery costs.

Healthcare costs in Austin (97) are higher than Tempe (95). Both are close to the national average.

Median household income in Austin is $75,413 compared to $56,068 in Tempe. When adjusted for cost of living, purchasing power is similar in both cities.

Relocating: Austin vs Tempe

If you are considering a move between Austin (index: 107) and Tempe (index: 106), the 1% cost difference has real implications for your budget. Tempe is the more affordable option, but the right choice depends on your income, career opportunities, and lifestyle priorities.

Housing budget reality: Using the 28% rule (spending no more than 28% of gross income on housing), the median household in Austin can afford $1,760/month, while the median household in Tempe can afford $1,308/month. With median homes at $430,000 in Austin versus $400,000 in Tempe, homeownership requires above-median income in the pricier market.

Renting vs buying: At $1,700/month in Austin and $1,600/month in Tempe, renters face similar costs in both cities. The rent-to-own ratio in each city determines whether renting or buying offers better value for your situation.

Income adjustment: A $75,000 salary goes about equally far in both cities. Before accepting a job in either city, use the salary equivalence data above to understand what you would need to earn to maintain your current standard of living.

Reading These Numbers: Austin (107) vs Tempe (106)

The cost of living index uses 100 as the national average. Austin at 107 is 7% above the US average, while Tempe at 106 is 6% above average. Both cities are close to the national average in overall costs.

Austin and Tempe land within 1 points of each other on the composite index (107 vs 106), so the overall cost picture is similar. Housing shows the widest single-category margin at 123 versus 114, making it the area where residents will feel the most day-to-day price difference between Austin and Tempe. Housing, the largest line item for most households, favors Tempe with indices of 114 versus 123. Median home prices of $430,000 in Austin and $400,000 in Tempe underscore this gap. Neither city is cheaper across the board: Austin has an edge in groceries and transportation, while Tempe is more affordable for housing and utilities. Your actual savings depend on which categories consume the biggest share of your personal budget.

For renters: With median rents of $1,700/month in Austin and $1,600/month in Tempe, the annual rent difference is approximately $1,200. Over a 5-year period, that compounds to $6,000 in savings by choosing the more affordable city.

For homebuyers: The $30,000 difference in median home prices between Austin and Tempe translates to roughly $1,800 per month in mortgage payments at current rates. Factor this into your budget alongside property taxes and insurance, which also vary by location.

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