A new rental report from Zillow has revealed Austin renters need to make about 18 percent more money than they did five years ago in order to afford rent in 2025.
Zillow analysts examined the income needed to afford rent in 50 major U.S. metros, and determined rent prices in each city as of April 2025. They used the Zillow Observed Rent Index (ZORI), instead of a median or average figure, finding a number that's roughly in the middle of offerings in the Zillow database and that is weighted for variables including decade built, structure type, and year rented.
The typical Austin renter needs to make $68,840 a year to afford living in the city, the report found. To afford rent for a single-family home, the income needed increases even further to $90,825.
Despite Austin's rising rent cost of living, it's still more affordable than many other cities. Nationally, the typical income needed for someone to comfortably afford rent comes out to nearly $81,000. The study says that figure has increased nearly 35 percent since 2020.
"Housing costs have surged since pre-pandemic, with rents growing quite a bit faster than wages," said senior Zillow economist Orphe Divounguy. "This often leaves little room for other expenses, making it particularly difficult for those hoping to save for a down payment on a future home. High upfront costs are often overlooked, which can keep renters in their current homes."
Zillow estimated Austin's rent prices at $1,721 for April 2025, which is less costly than the national rent index of $2,024. Additionally, Austinites are spending about 20 percent of their income on rent, while the typical American spends almost 30 percent of their income on rent.
In the short term, renters are also saving hundreds of dollars per month in comparison to those that own their homes, as a recent SmartAsset study discovered the median monthly housing costs for an Austin homeowner came out to $2,768. Of course, homeowners can hope that they see that money again when selling.
At least we're not living on the East or West Coast, where eight U.S. metros require six-figure incomes to afford rent. Residents in San Jose, California need to make $136,532 a year to afford rent, the highest out of all 50 U.S. cities. Rent prices in San Jose came out to $3,413 in April.
Here's how much money renters need to afford living in other Texas metros, according to Zillow:
- Dallas – $71,413
- Houston – $67,731
- San Antonio – $58,590
