Austin vs New Orleans: cost of living compared
New Orleans is 22% cheaper than Austin overall. Austin (TX) has no state income tax; LA tops out around 4.25%.
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
Overall, the cost of living in Austin is considerably higher than in New Orleans. This significant difference is primarily driven by housing expenses, which are substantially greater in Austin. Other categories like transportation, food, and miscellaneous goods and services also contribute to Austin being a more expensive place to live, while New Orleans generally falls below the national average across most spending areas.
Housing
Housing costs present the most dramatic difference between the two cities. Both median home prices and typical one-bedroom rents are much higher in Austin compared to New Orleans. While not explicitly detailed, the older housing stock in New Orleans might suggest different maintenance or insurance considerations, particularly given its coastal location, whereas Austin's newer developments could mean different property tax structures.
Taxes and everyday costs
Daily expenses vary notably. New Orleans residents face a state income tax, which is absent in Texas, impacting take-home pay. Transportation costs are higher in Austin, while food and healthcare expenses are generally more affordable in New Orleans. Utilities are somewhat more expensive in Austin. These factors mean daily spending on essentials will generally be lower in New Orleans.
Lifestyle trade-offs
Beyond costs, a move between these cities means adjusting to different environments. Austin offers a drier, inland climate, while New Orleans is humid and coastal. Commute times are generally longer in Austin. New Orleans is known for its historic architecture and walkable, dense neighborhoods, whereas Austin has a more sprawling character. Both cities experience distinct weather patterns, including hurricane season for New Orleans.
Bottom line
For households considering a move, the financial impact is substantial. New Orleans offers a significantly lower cost of living across the board, especially in housing, which could free up considerable budget for other priorities. Austin, while offering a different economic landscape and no state income tax, demands a much larger financial commitment for housing and most everyday expenses, requiring a higher income to maintain a similar lifestyle.
| Measure | Austin, TX | New Orleans, LA |
|---|---|---|
| Overall cost of living (US avg = 100) | 118 | 92 |
| Housing index | 132 | 74 |
| Transportation index | 109 | 93 |
| Food index | 102 | 95 |
| Healthcare index | 102 | 92 |
| Utilities index | 112 | 108 |
| Misc index | 102 | 88 |
| Median home price | $498,000 | $248,000 |
| Median 1-bedroom rent | $1,750/mo | $1,200/mo |
| Average commute | 30 min | 26 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific New Orleans home with the True Cost Calculator.