Cost of Living in Austin, TX

Broker’s Notes

What it actually costs to run a home in Austin

For our household (2,200 sq ft in Northwest Austin, four people), total utilities average about $656 per month across electric, gas, water/wastewater/trash, and internet. Mild months drop to around $450; peak summer hits about $700. The national average sits around $640, so Austin’s in line. Water tends to run higher than most cities, but power runs slightly lower. Houston and Dallas come in similar to Austin; Phoenix averages around $720; LA can easily top $1,000 a month. The real takeaway: utilities aren’t where Austin gets expensive. Housing and property taxes are what define affordability here.

What most people don’t realize is that there are three completely different electric systems inside ERCOT, and the one you fall under can dramatically change your bill. Regulated city utilities like Austin Energy and CPS Energy in San Antonio set rates through city council, no choice of provider. Electric cooperatives like Pedernales Electric (mine) and Bluebonnet are member-owned nonprofits that return surplus as capital credits. My January bill literally has a line that says “capital credit discount distribution” with about $10 back. Deregulated markets cover places like Dallas, Houston, and parts of Pflugerville and Round Rock. In those areas, you can shop providers like Reliant, TXU, or Green Mountain. Worth knowing before you sign a contract on a home in a specific area.

Gas is statewide-regulated through the Texas Railroad Commission. In Central Texas that means Atmos. Predictable rates, no surprise spikes; Atmos customers held flat during the 2021 winter storm while electric prices were soaring. Water is where Austin charges more, with tiered rates that jump past 10,000 gallons to encourage conservation in a drought-prone region. As of late 2025 we’re under Stage 2 drought restrictions, with Lake Travis around 40% full. Trash fees scale with bin size, and downsizing can save $10–20/month easily. If you’re moving to the area and want a real read on what your specific household will pay based on where you’re buying, the system you’ll be on, and how much water you actually use, get in touch. Happy to walk through it.