Comparing Austin and San Francisco (SF) in 2025 is a study in “expensive” vs. “extraordinary.” While Austin has seen prices skyrocket over the last five years, San Francisco remains in a category of its own regarding the cost of living.
Here is the breakdown of how these two cities serve different life stages and income levels.
1. Family of Four
Household Income: $200,000/year
At this level, the difference is between homeownership and renting.
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Austin (Comfortable & Growing): On $200k, you are a “high earner.” You can afford a high-end 4-bedroom home in a top school district like Eanes (West Lake Hills) or Round Rock with a mortgage that doesn’t consume your entire life.
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Housing: Median 3-bedroom rent is ~$2,500; median home price is ~$500k.
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Taxes: $0 state income tax means you keep thousands more each year compared to California.
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San Francisco (The “Middle-Class” Struggle): In SF, a $200k income for a family of four is technically classified as “low income” for certain housing assistance programs. Buying a home is almost impossible without a massive down payment (median home price is $1.3M+).
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Housing: A 3-bedroom apartment averages $5,500/month.
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Taxes: You will pay roughly 8–10% in state income tax, further reducing your take-home pay.
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Verdict: Austin is the winner. A family on $200k in Austin lives a “luxury” lifestyle; in SF, they live a “modest” one.
2. Young Couple
Household Income: $100,000/year
This is where the lifestyle “vibe” matters most.
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Austin (Social & Vibrant): You can afford a nice 1-bedroom apartment in a “walkable” area like East Austin or South Lamar (~$1,800/month). You’ll have plenty of discretionary income for the city’s famous live music, BBQ, and outdoor activities at Lady Bird Lake.
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San Francisco (The Cultural Trade-off): You are likely renting a small studio or an older 1-bedroom in a neighborhood like The Richmond or Sunset (~$3,200/month). You will be “rent-burdened,” likely spending 40–50% of your income on housing.
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The Perk: You don’t need a car. SF’s walkability and public transit are world-class, whereas Austin essentially requires a vehicle, which adds ~$800/month in gas, insurance, and maintenance.
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Verdict: Austin wins on financial breathing room. However, if you work in specialized Tech or AI, the networking “ROI” of being in SF might outweigh the high costs.
3. Single Person
Income: $40,000/year
At $40k, both cities are incredibly difficult, but SF is nearly “prohibitive.”
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Austin: This is below the “living wage” (currently ~$45k for a single adult). To survive, you must have roommates. You would likely live in further-out areas like Riverside or North Lamar. You will spend a huge portion of your check on a car and rent.
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San Francisco: $40k is deep in the “poverty” tier for the Bay Area. You would likely be renting a single room in a shared house with 3–4 other people.
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The “Hack”: Because you don’t need a car in SF, you save the ~$10,000/year a car costs. This makes SF slightly more survivable than it looks on paper, but it is still a significant struggle.
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Verdict: Austin, but only by a hair. In both cities, a $40k salary requires “survival mode” budgeting.