Austin vs Memphis: cost of living compared

Memphis is 34% cheaper than Austin overall. Neither TX nor TN has a state income tax.

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

Moving from Memphis to Austin would mean a substantially higher overall cost of living. Austin's expenses are considerably above the national average, while Memphis offers a significantly more affordable environment, well below the national benchmark. This substantial difference is primarily driven by housing costs, which show a dramatic gap between the two cities, making it the most impactful factor in the overall budget comparison.

Housing

Housing presents the most striking difference. Austin's median home prices are dramatically higher, and even a one-bedroom rental commands a much steeper monthly payment compared to Memphis. While both states lack a state income tax, property taxes and insurance costs can vary, and Austin's higher home values would likely translate to considerably greater ownership expenses beyond the mortgage itself. Memphis offers a far more accessible housing market for both buyers and renters.

Taxes and everyday costs

Daily expenses also vary, though both states share the advantage of no state income tax. Transportation costs are noticeably higher in Austin, as are utilities. Food, healthcare, and miscellaneous expenses are also more expensive in Austin, albeit with a slightly smaller difference compared to housing. Overall, everyday spending on necessities would be considerably lighter on the wallet in Memphis, allowing for more discretionary income.

Lifestyle trade-offs

Beyond costs, a mover would notice distinct lifestyle differences. Austin typically experiences a hot, humid subtropical climate with a generally more arid feel in summer, while Memphis has a humid subtropical climate with hot, humid summers and mild winters. Austin is known for its vibrant urban core and surrounding hill country, often requiring more driving. Memphis, situated on the Mississippi River, has a rich historical character and a different pace, with a slightly shorter average commute time.

Bottom line

For households considering a move, the financial implications are clear: Austin represents a considerably more expensive place to live across almost all categories, with housing being the most significant differentiator. Memphis offers a much lower cost of entry into homeownership and a more affordable daily existence. While both cities offer unique experiences without a state income tax burden, a move to Austin would necessitate a substantially larger budget to maintain a similar standard of living compared to Memphis.

Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Memphis home with the True Cost Calculator.

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