Affordable Living in Austin Minnesota
A Comprehensive Guide for 2024
Austin, Minnesota offers a cost-effective living environment compared to national averages. Located in the southeastern part of the state, this city provides residents with an affordable lifestyle while maintaining access to essential amenities.
The cost of living in Austin, MN is approximately 23.7% lower than the U.S. average, with a BestPlaces Cost of Living score of 76.3. This makes Austin an attractive option for those seeking a more budget-friendly place to call home. Housing costs are particularly favorable, with prices significantly below both state and national averages.
Recent data shows a slight increase in living expenses, with Austin area prices rising 1.3% from the previous year. The most notable increases were observed in transportation, food, and housing sectors. Despite these modest upticks, Austin remains an economical choice for individuals and families looking to stretch their dollars further in Minnesota.
Overview of Cost of Living
Austin, Minnesota offers a relatively affordable cost of living compared to many other areas in the United States. The city's cost of living index stands at 87.6, which is 13.4 points lower than the national average of 101.0.
This lower cost of living makes Austin an attractive option for individuals and families seeking more affordable living arrangements. Housing costs in particular tend to be lower than in many other parts of the country.
Transportation, food, and housing have seen the largest price increases in Austin over the past year, with overall prices rising 1.3% from the previous year. Despite these increases, the city remains comparatively affordable.
The average monthly cost of living in Austin is $2,153. This places the city in the top 15% of most expensive cities globally, ranking 1407th out of 9294 worldwide and 42nd out of 54 in Minnesota.
For those considering a move to Austin, using a cost of living calculator can help provide a clearer picture of expected expenses. These tools typically factor in costs such as housing, utilities, groceries, and transportation.
Austin's affordability allows residents to maintain a comfortable lifestyle while potentially saving more of their income compared to living in more expensive cities.
Housing Costs in Austin
Austin, Minnesota offers relatively affordable housing options compared to national and state averages. Home prices and rent costs are significantly lower than many other areas, making it an attractive option for those seeking more affordable living arrangements.
Median Home Price
The median home price in Austin is $155,000, which is substantially lower than both national and state averages. This price point represents a 54.2% reduction compared to the national average of $338,100. It's also 49.9% less expensive than the average Minnesota home price of $309,500. For potential homebuyers, Austin presents an opportunity to purchase property at a more accessible price point.
Monthly Rent Prices
Renting in Austin is also more affordable than in many other locations. A typical two-bedroom unit in Austin costs $970 per month. This rental rate is 32.2% cheaper than the national average of $1,430. It's also 27.8% less expensive than the Minnesota state average of $1,240. These lower rental costs can provide significant savings for residents, especially those on fixed incomes or looking to reduce their housing expenses.
Housing Index
The housing cost index for Austin is notably lower than the national average. With a cost of living index of 84 (where 100 represents the national average), Austin's housing expenses are approximately 16% below the U.S. norm. This lower index reflects the city's more affordable housing market. Austin ranks as the 4th cheapest city in Minnesota out of 147 locations for overall cost of living. On a national scale, it places 629th out of 6,412 areas evaluated, indicating its competitive position in terms of affordability.
Taxes in Austin
Austin, Minnesota residents face various taxes that impact their overall cost of living. The city's tax structure includes income and property taxes, which contribute to local services and infrastructure.
Income Tax Rates
Minnesota uses a progressive income tax system with rates ranging from 5.35% to 9.85%. Austin residents pay state income taxes based on their earnings. For 2024, single filers with taxable income up to $28,080 fall into the lowest bracket at 5.35%. The highest rate of 9.85% applies to single filers with taxable income over $171,220. Married couples filing jointly have different income thresholds for each tax bracket.
Austin does not impose an additional local income tax on its residents. This means residents only pay state and federal income taxes on their earnings.
Property Tax Overview
Property taxes in Austin fund local services such as schools, public safety, and infrastructure. The city's property tax rate is composed of levies from various entities, including the city, county, and school district. In 2024, Austin's total property tax rate is approximately 1.2% of the assessed property value.
Homeowners in Austin may be eligible for property tax relief programs. These include the Homestead Credit Refund and the Property Tax Refund for Renters, which can help offset some of the tax burden for qualifying residents. The exact amount of property taxes owed depends on factors like the property's assessed value and any applicable exemptions.
Living Expenses Breakdown
Austin, Minnesota offers a relatively affordable cost of living compared to national averages. Key expenses like food, healthcare, utilities, and transportation contribute to the overall cost of living in the city.
Food Costs
The groceries index in Austin is lower than the national average, making food costs more manageable for residents. Local supermarkets and grocery stores offer competitive prices on essential items.
Typical grocery prices in Austin:
Gallon of milk: $3.20
Loaf of bread: $2.50
Dozen eggs: $2.80
Dining out is also reasonably priced. A meal at an inexpensive restaurant costs around $12-$15 per person. Fast food options are available for those seeking more budget-friendly choices.
Healthcare Costs
Healthcare expenses in Austin are generally lower than the national average. The city has several medical facilities, including Mayo Clinic Health System in Austin, providing quality care at competitive rates.
Average healthcare costs:
Doctor's visit: $100-$120
Dental check-up: $80-$100
Prescription medications: 10-15% below national average
Health insurance premiums in Austin are also relatively affordable, contributing to the overall lower healthcare costs for residents.
Utilities Expenses
Utility costs in Austin are slightly below the national average. This includes expenses for electricity, heating, water, and garbage collection.
Monthly utility estimates for a 900 sq ft apartment:
Electricity: $90-$110
Water: $30-$40
Internet (60 Mbps): $50-$60
Energy costs may fluctuate seasonally due to Minnesota's climate, with higher heating expenses in winter and potential air conditioning costs in summer.
Transportation Costs
Transportation expenses in Austin are lower than many other U.S. cities. The city's smaller size contributes to shorter commute times and reduced fuel consumption.
Transportation cost factors:
Gasoline: Prices are typically 5-10% below national average
Public transit: Limited options, but affordable when available
Vehicle maintenance: Generally less expensive than larger cities
Many residents rely on personal vehicles for transportation. However, the compact nature of Austin allows for some walking and biking options, potentially reducing overall transportation costs.
Cost of Living Comparison
Austin, Minnesota offers a more affordable lifestyle compared to many other cities in the United States. The cost of living index for Austin stands at 87.6, which is 13.4 points lower than the national average of 101.0.
Housing costs in Austin are particularly competitive. Residents can expect to pay less for both home purchases and rentals compared to the national average.
Food expenses in Austin are also more budget-friendly. Grocery prices and dining out costs tend to be lower than in many other parts of the country.
Transportation and healthcare costs in Austin generally align closer to the national average. However, residents may still find some savings in these areas compared to larger metropolitan areas.
The C2ER (Council for Community and Economic Research) provides detailed cost of living data for cities across the U.S. Their index takes into account various factors including:
Housing
Utilities
Groceries
Transportation
Healthcare
Miscellaneous goods and services
When comparing Austin to other Minnesota cities, it remains relatively affordable. The cost of living in Austin is about 10% lower than the average city in the state.
For those considering a move to Austin, MN, these lower living costs can translate to increased purchasing power and potentially a higher quality of life, depending on individual circumstances and income levels.
Safety and Crime
Austin, Minnesota has lower crime rates compared to national averages. The city's safety profile is characterized by relatively low violent crime but higher property crime incidents.
Violent Crime Rates
Austin's violent crime rate is 32% lower than the national average. Residents have a 1 in 397 chance of becoming a victim of violent crime. This statistic places Austin in a favorable position compared to many other U.S. cities.
The city's lower violent crime rate contributes to its overall safety ranking. Austin is considered safer than 39% of cities in the United States.
Property Crime Statistics
Property crime is more prevalent in Austin compared to violent crime. Residents face a 1 in 49 chance of experiencing property crime. This rate is slightly higher than the national average.
The overall crime rate in Austin is 30.89 per 1,000 residents during a standard year. While this figure includes both violent and property crimes, it's primarily driven by property-related incidents.
Austin's crime rates have shown improvement over time. Year-over-year crime in the city has decreased by 8%, indicating positive trends in local safety measures.
Quality of Life
Austin, Minnesota offers a balanced quality of life with strong educational opportunities, diverse recreational activities, and unique cultural attractions. The city provides a mix of small-town charm and modern amenities for residents to enjoy.
Education System
Austin Public Schools serves the community with six elementary schools, one middle school, and one high school. The district focuses on personalized learning and technology integration. Riverland Community College provides higher education options, offering associate degrees and career training programs.
Austin High School boasts a 92% graduation rate, above the state average. Advanced Placement courses and extracurricular activities enhance student experiences. The district also offers early childhood education programs and adult learning opportunities.
Recreation and Leisure
Austin's parks and recreation department maintains over 30 parks and green spaces. Todd Park, the largest in the city, features sports fields, hiking trails, and a swimming pool. The Jay C. Hormel Nature Center provides 500 acres of prairie, forest, and wetlands for outdoor enthusiasts.
The Austin Community Recreation Center offers fitness facilities, an indoor pool, and youth programs. Anglers enjoy fishing on the Cedar River, while golfers can play at the Austin Country Club or Meadow Greens Golf Course.
Winter activities include cross-country skiing and ice skating at various locations throughout the city.
Cultural Attractions
The SPAM Museum, a unique attraction dedicated to the famous canned meat product, draws visitors from around the world. It offers interactive exhibits and free admission.
The Historic Hormel Home, once owned by the Hormel family, is now a museum showcasing early 20th-century architecture and local history. The Austin ArtWorks Center hosts exhibitions, classes, and events celebrating local artists.
The Paramount Theatre, built in 1929, hosts live performances and classic film screenings. Annual events like the Mower County Fair and Austin ArtWorks Festival bring the community together to celebrate local culture and creativity.
Economic Factors
Austin, Minnesota's economy is influenced by several key industries. The city is home to Hormel Foods Corporation, a major employer that drives local economic activity.
Manufacturing plays a significant role in Austin's job market. This sector provides stable employment opportunities and contributes to the city's overall economic health.
The cost of living in Austin is notably lower than national and state averages. Housing costs are particularly affordable, with home prices about 54% below the national average.
Rental prices in Austin are also competitive. A two-bedroom apartment typically costs around $970 per month, which is 32% less than the national average.
Food costs in Austin are slightly below average compared to the rest of the United States. This helps residents maintain a reasonable standard of living.
The job market in Austin offers diverse opportunities across various sectors. While wages may be lower than in larger metropolitan areas, they are generally in line with the reduced cost of living.
Austin's overall cost of living index stands at 72.9, indicating it is about 27% cheaper to live in than the average U.S. city. This affordability makes Austin an attractive option for residents and businesses alike.
