Over the past several years, few American cities have seen the explosive growth and migration appeal of Austin, Texas. Between 2020 and 2024, the Austin–Round Rock–San Marcos metro area saw its population swell from approximately 2.3 million to 2.55 million, an 11% increase, making it the fastest-growing major metro in the U.S. during that period.
In the past year alone, the region added more than 58,000 new residents, further cementing its reputation as a relocation magnet. This surge underscores why the “Live Music Capital” remains one of the top reasons to move to Austin.
A Decade of In-Migration Momentum
Driven by both domestic and interstate migration, Austin continues to be a major relocation hotspot. U-Haul’s national data named Texas the #1 growth state in both 2022 and 2023, and Austin ranked 5th among its top 25 growth cities in 2023.
Census data confirms that a significant share of new residents come from high-cost coastal states. Between 2016 and 2020, nearly 10,000 people relocated from California to the Austin metro, almost matching the 10,305 new arrivals from within Texas.
However, recent trends show a slight cooling. Travis County recorded a net outflow of roughly 2,500 people between July 2022 and July 2023, its first negative net migration in about 20 years, a shift largely tied to rising housing costs. Yet despite this dip, the broader Austin metro continues to gain residents overall, signaling that its long-term appeal remains strong.
Job Market and Economic Strength
Austin’s employment landscape remains one of its strongest magnets. Ranked the #1 “boomtown” in America by LendingTree, the city posted exceptional growth from 2021–2023, including a 14.6% increase in GDP, a 9.4% rise in housing units, and a 5.1% population gain in just two years.
The Austin job market in 2024 remains robust, with unemployment hovering around 3.1%, far below state and national averages. The region added more than 22,700 jobs year-over-year, reflecting widespread growth across tech, construction, healthcare, and professional services.
Tech giants continue to deepen their roots:
- Tesla has moved its global headquarters to Austin and invested over $4.3 billion into its Gigafactory Texas facility.
- The company now employs more than 20,000 people in the region.
These expansions fuel not just tech hiring but also jobs in manufacturing, logistics, and supporting industries, making Austin’s economy one of the most dynamic in the country.
Housing Market and Cost of Living
Unsurprisingly, Austin’s rapid economic and population growth has profoundly shaped the housing market.
Between 2020 and 2021, home values rose by a staggering 40.3%, the largest increase in the nation during that period. As mortgage rates climbed and new supply entered the market, prices fell ~14% year-over-year by mid-2023, the steepest drop among major metros. Still, prices remain about 38% higher than in early 2020, reflecting continued long-term demand.
The city is responding with an unprecedented building boom. Austin ranked 3rd in the U.S. for new apartment construction in 2025, with 15,000+ units completed and another 26,715 expected by year-end. This surge is helping moderate rents, which have dropped 10.7% year-over-year, bringing the median asking rent to roughly $1,420 as of early 2025.
Living expenses remain above average. One index places Austin’s overall cost of living at 119 (U.S. average = 100), and another estimates monthly expenses at around $2,416 for a single person. However, despite rising costs, many still see Austin as more accessible than other innovation hubs like San Francisco, Seattle, or New York.
Talent, Education, and Quality of Life
The city’s demographic makeup also fuels its growth. Nearly 56% of residents hold bachelor’s degrees, placing Austin among the most highly educated major U.S. metros. Youth unemployment is also low, around 3.5% for residents aged 20–29, reflecting strong early-career opportunities.
Median income for college graduates stands at about $78,164, and the lifestyle is another major draw: Austin averages 355 leisure spots (restaurants, entertainment, amenities) per 100,000 residents, contributing to its ranking as one of the top cities for recent college graduates. The combination of outdoor access, cultural vibrancy, and a mild climate helps reinforce Austin’s appeal to young professionals and families alike.
Another element adding to Austin’s draw is Texas’s favorable tax framework. With no state income tax and supportive policies such as homestead exemptions, the state remains especially attractive to remote workers, entrepreneurs, and retirees looking to maximize income retention. These fiscal advantages have helped Texas consistently rank among the top migration destinations in the U.S., strengthening Austin’s appeal by extension.
Thinking About Making the Move?
Whether you're chasing career opportunities, seeking better weather, or looking to escape high-tax coastal cities, many Americans are still finding compelling reasons to move to Austin. If you’re planning a relocation, working with experienced Austin movers can make the transition smoother and stress-free.
While affordability concerns are real and the explosive “boomtown” pace has cooled slightly, Austin remains a vibrant, evolving metro filled with opportunity for individuals and families alike.
