Expert Advice for Those Moving From Austin to Dallas
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With one of the fastest growing economies in the nation, Texas has become a hot destination for individuals and businesses alike. Two of the most popular cities in the state are Austin and Dallas.
In recent years, Austin has seen explosive economic growth, but the cost of living has spiked dramatically. If you're considering moving from Austin to Dallas, here are some important things you should know.
What's the Cost of Living in Dallas?
When moving, one of the first things you should consider is any cost of living differences.
According to data from RentCafe, the average cost of living in Austin is about 9% higher than the state average, and the average cost of living in Dallas is about 11% higher than the state average. The median household income in Austin is $78,965, and the median household income in Dallas is $58,231.
Although the cost of living in both cities is about the same percentage higher than the national average, the two cities differ in various categories.
Austin Rent vs. Dallas Housing Costs
As of 2023, average monthly rent in Austin is approximately $1,799, while average monthly rent in Dallas is $1,577. The average cost of a house in Austin is $484,000, and the average cost of a house in Dallas is $439,403.
The combination of rapid population growth and constrained supply means that housing costs in Dallas are rising fast. Dallas had some of the fastest multifamily rent increases in the past year at a rate of 7.8% in Q3 2022 and occupancy rates had grown to over 94% by the end of 2022. Austin still has higher rents, but their growth has moderated in recent months.
Dallas Job Market vs. Austin Job Market
Like many other cities in Texas, Dallas has been experiencing a surge of job growth in the past few years. Dallas's job market has grown by a fifth over the past five years, for an average of 4% a year. The unemployment rate in Dallas was 3.60% as of April 2023, which is right at the national average and slightly lower than the state average of 4.10%.
In other words, the job market in Dallas is very strong. Some of the fastest-growing industries in Dallas include:
- Technology;
- Healthcare;
- Financial Services;
- Trade and Transportation;
- Hospitality Services; and
- Education.
Despite these impressive numbers, Dallas's job market isn't as robust as Austin's: Austin was recently ranked the #2 job market in the nation, behind Nashville and ahead of Jacksonville. Specifically, the number of tech jobs in Austin has risen by 62% over the past decade and isn't showing signs of stopping soon.
Dallas's Business Environment vs. Austin's Business Environment
Both the Dallas-Fort Worth and Austin metro areas have business-friendly environments that are home to several major company headquarters.
Dallas has headquarters for 24 Fortune 500 companies and 49 Fortune 1,000 companies. Some of the largest companies that have headquarters in Dallas, TX, include:
- ExxonMobil;
- McKesson;
- AT&T;
- American Airlines;
- CBRE Group;
- HF Sinclair;
- Texas Instruments;
- 7-11;
- Southwest Airlines; and
- Gamestop.
Austin has a lower concentration of Fortune 500 companies, but it has a large and dynamic tech industry with notable corporate residents, such as Facebook, Google, and Amazon. Also, Tesla Motors has recently relocated its global manufacturing headquarters to southeast Travis County.
More generally, though, both cities have business-friendly policies that favor entrepreneurs. The lack of local and state income tax means that entrepreneurs and businesses can keep more of their money. However, Dallas has an effective property tax of 2.2%, which is higher than the national average effective property tax of 1.11%.
Austin, in comparison, has lower property tax rates at 1.4%. Although lower, Austin's property tax rate is higher than the national average and many other states, such as San Francisco.
Austin Transportation vs. Dallas Transportation
Like the rest of Texas, many in both Dallas and Austin primarily travel by car, but both cities have their own public transportation systems. Unfortunately, Dallas is one of the worst large metro areas to live in without a car. Dallas's DART rail system spans 90 miles but only sees about 1,000 passengers a day.
Similarly, living without a car in Austin is difficult yetmore manageable than in Dallas. Specifically, the Downtown area is highly walkable. Austin has the CapMetro Rail that spans 32 miles and connects the downtown area to North Austin.
So, if you're currently living without a car in Austin, you should probably look into buying one when you move to Dallas.
Austin Entertainment vs. Dallas Entertainment
Both cities might be great for work, but what about entertainment? Both cities have a lot to offer in terms of recreation. Both Austin and Dallas exist in sunny Texas, which has no shortage of beautiful nature to get lost in.
Dallas sits next to Angelina National Forest and Ouachita National Forest, and Austin also has notable outdoor recreation, like McKinney Falls State Park and Bull Creek District Park.
As far as other entertainment options, Dallas is home to a number of professional sports teams, including:
- Dallas Cowboys;
- Texas Rangers;
- Dallas Mavericks;
- Dallas Stars; and,
- FC Dallas.
In contrast, Austin only has one professional sports team, Austin FC. However, Austin is home to the University of Texas Longhorns, one of the most famous college football teams in the nation.
Both cities have great entertainment options for music and nightlife. However, Austin wins out on musical offerings and is the home of both SXSW and ACL music festivals. Moving to Dallas will give you more sports options but fewer music options.
Overall, though, Dallas is a great city that can be a nice change of pace from Austin. If you are moving to Dallas and want to buy property, be sure to work with a real estate agent to find the best prices in the area.
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