Austin vs Louisville: cost of living compared
Louisville is 31% cheaper than Austin overall. Austin (TX) has no state income tax; KY tops out around 4.5%.
Indexes use a US average of 100: below 100 is cheaper than the national average. Housing and transportation are derived from median home prices, rents and commute times; figures come from BLS, Census ACS, Numbeo and the MIT Living Wage Calculator.
The big picture
Louisville offers a substantially more affordable cost of living compared to Austin. The overall expenses in Louisville are noticeably below the national average, while Austin's are well above it. This significant difference is primarily driven by housing costs, which are much higher in Austin. Other categories like transportation, food, and utilities also contribute to Austin being a more expensive place to live, though to a lesser degree.
Housing
The housing market presents a stark contrast between the two metros. Median home prices in Austin are more than double those in Louisville, and median one-bedroom rents follow a similar pattern, being considerably higher in Austin. Louisville's housing costs are well below the national average, while Austin's are substantially above it. This makes homeownership and renting significantly more accessible in Louisville.
Taxes and everyday costs
Daily expenses, beyond housing, also show a clear difference. Kentucky has a state income tax, unlike Texas, which impacts take-home pay. Transportation, food, healthcare, and utilities are all more expensive in Austin than in Louisville. Louisville's costs in these categories are generally below the national average, making everyday spending noticeably lighter there compared to Austin.
Lifestyle trade-offs
Movers would notice distinct lifestyle differences. Austin is known for its warm climate, while Louisville experiences all four seasons, including colder winters. Austin generally feels more densely populated and has a longer average commute time. Louisville's commute is shorter, and its pace might feel more relaxed. Both metros offer distinct cultural and recreational opportunities.
Bottom line
For households prioritizing budget, moving to Louisville from Austin would result in substantial savings across nearly all spending categories. The most significant financial relief would come from housing, whether buying or renting. While Austin offers a vibrant, warm-weather experience, Louisville provides a more budget-friendly environment with lower everyday costs and a shorter average commute, impacting a household's financial outlook considerably.
| Measure | Austin, TX | Louisville, KY |
|---|---|---|
| Overall cost of living (US avg = 100) | 118 | 82 |
| Housing index | 132 | 63 |
| Transportation index | 109 | 85 |
| Food index | 102 | 88 |
| Healthcare index | 102 | 88 |
| Utilities index | 112 | 92 |
| Misc index | 102 | 80 |
| Median home price | $498,000 | $218,000 |
| Median 1-bedroom rent | $1,750/mo | $975/mo |
| Average commute | 30 min | 24 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Louisville home with the True Cost Calculator.