A new cost of living index highlights what many Austin renters are acutely aware of: Local rents are among the most expensive in the United States.
According to Numbeo’s 2025 Cost of Living Index, Austin has a rent index of 50.1, ranking 12th among major North American cities and highest in Texas, ahead of Dallas, Houston, and San Antonio. New York City, which tops the list, has a rent index of 100.
As Numbeo explains, the Rent Index estimates the cost of renting an apartment in a city compared to New York City. For example, a rent index of 50 indicates that the average rent in that city is 50% lower than the average rent in New York City.
Here are the rent indices for other parts of Texas:
46.2 in Dallas, 39.8 in Houston, 34.6 in San Antonio
Austin is an expensive apartment market, but renters are making a big splash these days. The Austin metropolitan area had the largest year-over-year decline in rents in December, at 7.4%, among large U.S. cities, according to a new report from Apartment List.
According to Apartment List, rents decreased by 0.6% in December, making 2024 the second consecutive year that the national median rent ended lower than it was at the beginning of the year.
“Rent increases are currently being cushioned by a robust construction pipeline that delivered the highest number of new apartments in decades in 2024. Although the supply boom may have peaked in 2024, There is still significant runway in 2025,” Apartment List said. .
living expenses
Numbeo’s Rent Index maintains Austin’s top spot in Texas, while the Composite Cost of Living Index ranks Dallas first in the Lone Star State and 24th in North America with a score of 65.8. Similar to the Rent Index, the Cost of Living Index compares the cost of living in New York City (taken as 100) to the cost of living in other cities. Texas cities have a rating of 61.7, Houston 60.6, and San Antonio 58.8.
Numbeo’s cost of living index takes into account the cost of items such as groceries, restaurant meals, transportation, and utilities. The index does not include rent.
When rent is added to the cost of living index, Dallas ranks 21st in North America (57.1), one spot ahead of Austin (56.6). Houston ranks 35th (51.4) and San Antonio ranks 42nd (34.6).
Personal finance website Unbiased reported in November that the cost of living in Dallas is 3 percent higher than the national average and 12 percent higher than the Texas average. Singles in Dallas spend an estimated $1,192 a month without rent, according to Numbeo data. For a family of four in Dallas, monthly expenses, excluding rent, would total an estimated $4,202.
“On average, you can expect to pay more for almost everything in Dallas than in many other cities and towns in Texas,” notes Unbiased. “However, depending on personal preferences and purchasing choices, the cost of living could be slightly lower or higher than the average resident.”
restaurant index
In contrast to rent and cost of living metrics, Houston outperforms Dallas, Austin, and San Antonio on Numbeo’s restaurant metrics. This index compares food and drink prices at restaurants and bars with prices in New York City.
Houston ranks 25th with a restaurant index of 68.9. Dallas ranks 32nd (67.1), Austin 34th (66.6) and San Antonio 36th (65.2).
The National Restaurant Association reported in December that U.S. menu prices rose 3.6% over the past 12 months, outpacing increases in grocery prices and the federal government’s overall Consumer Price Index. Fortunately for diners, this is the smallest 12-month increase in menu prices since August 2020, according to the association.
Toast Inc., which provides a cloud-based restaurant management system, said the increase in menu prices reflects rising food prices.
“Food prices are rising due to inflation, labor costs, fuel costs and supply chain disruptions, all of which are impacting restaurant profitability,” Toast said. As an option to combat rising prices, some restaurants are introducing service charges and simplifying their menus to avoid passing all costs on to customers.
