Moving From California to Austin: What to Know in 2026

If you live in California and you've been thinking about moving to Austin, you are not alone. Thousands of Californians have made the same move over the last few years, and the trend is still going strong in 2026. According to Redfin migration data from early 2026, San Francisco and Los Angeles rank among the top cities where homebuyers are searching for homes in Austin.

Why? The math is simple. California's housing costs are among the highest in the country, and Austin offers a similar quality of life at a fraction of the price. But moving across state lines is a big decision. This guide breaks down everything you need to know about relocating from California to Austin in 2026 — housing costs, taxes, lifestyle, and what to watch out for.

Housing Costs: California vs. Austin

The biggest reason Californians move to Austin is housing affordability. Let's look at the numbers side by side, using median home sale prices from Redfin data through May 2026:

City	Median Home Price	Cost of Living vs. National Avg
San Francisco, CA	$1,698,983	64% higher
Los Angeles, CA	$1,049,372	52% higher
San Diego, CA	$954,429	47% higher
Austin, TX	$542,460	4% lower

Source: Redfin housing market data, May 2026; Redfin cost-of-living index.

The difference is massive. A home in San Francisco costs more than three times what the same home would cost in Austin. Even compared to Los Angeles, Austin's median price is roughly half. For a California homeowner selling a property at California prices, the purchasing power in Austin is enormous.

Here's what that looks like in real terms. If you sell a home in Los Angeles for $1 million and buy a comparable home in Austin for $542,000, you could pocket nearly $460,000 — or upgrade to a much larger, newer home and still have money left over.

Renting vs. Buying in Austin

If you are not ready to buy right away, Austin's rental market is also more affordable than California's major metros. A one-bedroom apartment in central Austin typically runs between $1,400 and $2,200 per month, depending on the neighborhood. In San Francisco or Los Angeles, the same apartment could easily cost $2,800 to $4,000 or more.

Taxes: A Major Advantage for Texas

Texas is one of nine states with no state income tax. California has the highest state income tax rate in the country, topping out at 13.3% for the highest earners. That alone can mean tens of thousands of dollars in savings every year.

Here is how it breaks down:

• State income tax: 0% in Texas vs. up to 13.3% in California
• Sales tax: 6.25% state rate in Texas, with local additions bringing it to about 8.25% in Austin. California's base rate is 7.25%, with local additions often reaching 9.5% or higher.
• Property tax: This is the trade-off. Texas has no state income tax, so it funds local services through higher property taxes. Austin's average effective property tax rate is around 1.8% to 2.2%, compared to California's Proposition 13-protected rate of about 0.7% to 1.1%. However, because home values are so much lower in Austin, the actual dollar amount paid is often similar or even less.

The bottom line: most Californians moving to Austin come out well ahead on taxes, especially if they earn a good income. The savings from zero state income tax usually more than offset the higher property tax.

The Job Market in Austin

Austin is not just cheaper — it has a thriving economy. The city is home to major employers like Dell Technologies, Tesla's Gigafactory, Apple's second-largest campus, Oracle, and a growing number of tech startups and fintech companies. The region has been called "Silicon Hills" for good reason.

Austin's unemployment rate has consistently stayed at or below the national average. Major industries include technology, government, healthcare, education, and manufacturing. If you work in tech, the Austin metro offers opportunities that rival Silicon Valley — often with better compensation when you factor in the lower cost of living.

For remote workers, Austin is also an excellent base. The city has great internet infrastructure, a growing freelancer and startup community, and Central Time Zone hours that work well for coordinating with both coasts.

What You Get for Your Money

When Californians buy a home in Austin, they are often shocked by how much more house they can afford. Here is what a $542,000 budget (Austin's median) typically buys in the Austin area:

• A 3 to 4 bedroom, 2,000+ square foot single-family home
• Often with a backyard
• In a master-planned community with amenities like pools, trails, and parks
• In suburbs like Round Rock, Cedar Park, Leander, Kyle, or Pflugerville

That same budget in San Francisco or Los Angeles would barely cover a condo or a small home needing significant repairs.

Popular Austin Suburbs for California Transplants

If you are relocating from California, these Austin-area suburbs tend to be popular with newcomers:

• Round Rock: About 20 miles north of downtown Austin. Great schools, family-friendly, and home prices typically range from $350,000 to $600,000.
• Cedar Park: Northwest of Austin with a strong tech presence. Median prices are around $450,000 to $650,000.
• Leander: Further north along the commuter rail line. More space for your money, with homes starting in the mid-$300,000s.
• Kyle: South of Austin along I-35. One of the more affordable options, with homes starting in the low $300,000s.
• Pflugerville: Northeast of Austin with a diverse community and homes in the $350,000 to $550,000 range.

Lifestyle Changes to Expect

Moving from California to Austin is not just about money. The lifestyle is different in ways you should understand before making the move.

Weather

Austin has hot summers. From June through September, temperatures regularly hit the upper 90s to low 100s, with high humidity. It is a different kind of heat than California's dry heat. Winters are mild, with occasional cold fronts and rare ice events. You will not miss California's wildfire season, but you should be prepared for severe thunderstorms and the occasional tornado watch in the spring.

Food and Culture

Austin is famous for its food scene — especially barbecue and Tex-Mex. The city also has a thriving craft beer industry, live music on every corner, and festivals year-round, including South by Southwest (SXSW) and Austin City Limits. If you enjoy outdoor activities, Austin has lakes, hiking trails, and greenbelts that rival anything California offers.

Traffic

Austin traffic is real, but most Californians find it more manageable than Los Angeles or the Bay Area. The main corridors (I-35, MoPac, and Highway 183) can get congested during rush hour, but commute times are generally shorter. Many suburbs are connected by the MetroRail commuter line, and the city is expanding its public transit options.

Diversity

Austin is a diverse and growing city, with a large and growing Hispanic population, a strong tech industry drawing people from around the world, and a welcoming culture. About 33% of Austin's population identifies as Hispanic or Latino, and the city has deep Mexican-American roots.

Mortgage Rates in 2026

As of July 2026, the average 30-year fixed mortgage rate is around 6.5%, according to Bankrate's national survey of lenders. The National Association of Realtors reported a median existing-home price of $440,600 nationally in June 2026 — an all-time high. Inventory remains tight, though Austin has seen more inventory than many other major markets.

For California buyers coming with equity from a high-priced home sale, the combination of lower home prices and a strong down payment can keep monthly payments very manageable, even at current rates. A $400,000 loan at 6.5% produces a monthly principal and interest payment of about $2,528. In California, a $900,000 loan at the same rate would cost about $5,688 per month.

Tips for California Transplants

1. Visit first. Spend at least a week in Austin during summer before committing. The heat is not for everyone.
2. Rent before you buy. Give yourself time to explore neighborhoods and find the right fit.
3. Work with a local agent. A local Realtor who understands the Austin market can help you avoid overpaying and identify neighborhoods that match your lifestyle and budget.
4. Factor in property taxes. Use a property tax calculator to understand what you will actually pay. Texas property taxes are higher, but the overall tax burden is usually lower.
5. Get pre-approved early. The Austin market is still somewhat competitive. Having a pre-approval letter from a lender shows sellers you are serious.
6. Consider your commute. Traffic in Austin is getting worse as the city grows. Look at drive times from any neighborhood you are considering before making an offer.

The Bottom Line

Moving from California to Austin in 2026 is one of the most financially smart moves you can make. You can cut your housing costs in half, eliminate your state income tax burden, and enjoy a high quality of life in a city with great food, music, and outdoor activities. Austin's job market is strong, the community is welcoming, and your dollar goes significantly further.

That said, it is not a decision to make lightly. Visit the city, talk to locals, and work with an experienced local Realtor who can guide you through the process. If you are ready to make the move, Austin is waiting with open arms — and much lower mortgage payments.

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Thinking about moving to Austin? Sully Ruiz is a bilingual Realtor serving the Austin metro area and helping families from California and beyond find their perfect home. Reach out today for a free consultation and neighborhood recommendations tailored to your budget and lifestyle.

Sources: Redfin housing market data (May 2026), Bankrate mortgage rate survey (July 14, 2026), National Association of Realtors existing-home sales data (July 9, 2026), IRS SOI tax stats migration data.