If you’re thinking about moving to Austin but want more affordability without losing out on growth, you’re not alone. More and more newcomers are looking just beyond the city limits for homes that are easier on the budget but still plugged into the region’s momentum. According to a 2025 GOBankingRates study, several fast-growing and affordable cities near Austin are climbing the ranks as smart choices for those relocating to the Austin area.
Round Rock: Steady Growth and Family-Friendly Living
Round Rock stands out as one of the most affordable cities near Austin with a strong reputation for schools, jobs, and family-oriented neighborhoods. The city saw a 3.17% population increase in just one year and a 3.44% rise over five years. While those numbers aren’t the highest on the list, they reflect a stable, appealing community.
With a median household income of $97,187 and average rent around $42,390 annually, newcomers moving to Austin often consider Round Rock their top alternative for balancing affordability and quality of life.
Plus, major employers like Dell Technologies have helped this suburb maintain a tech-forward job market that still retains that small-town vibe. From historic downtown to Brushy Creek trails, Round Rock blends convenience with charm.
Killeen: Budget-Friendly with Military Roots
For those prioritizing affordability above all else when relocating to the Austin area, Killeen is worth a serious look. Ranked #49 in the GOBankingRates study, it boasts one of the lowest costs of living in the region.
With an average annual rental cost of just $19,364 and homeowner expenses barely over $19,721, Killeen is ideal for newcomers moving in Austin who want to stay within commuting distance but reduce living expenses significantly.
Home to Fort Cavazos (formerly Fort Hood), Killeen has a deep military presence, which brings a strong sense of community and stability. It’s about an hour north of Austin, making it doable for occasional commuters or remote workers who want access to big-city perks without the price tag.
Denton: A Growing College Town Within Reach
Denton, while further north than most traditional Austin suburbs, has a unique mix of affordability, culture, and college-town energy. With a 3.32% one-year growth rate and nearly 10% five-year growth, Denton is one of Texas’ fastest-growing cities.
Its median household income sits at $73,719, with renters spending around $41,775 per year. Denton might be better known for its proximity to Dallas-Fort Worth, but for those relocating to Austin and open to being slightly farther afield, it’s an attractive balance of value and vibrancy.
Music festivals, indie venues, and two universities (University of North Texas and Texas Woman’s University) make Denton a magnet for creative newcomers. It’s ideal for younger adults, remote workers, or retirees looking for a low-cost lifestyle with big-city amenities a drive away.
Austin: Still on the List, but with a Price
Surprisingly, Austin itself made the top 50 most affordable, fastest-growing cities—but just barely. Ranked #35, the city saw modest growth (1.01% over one year and 3.43% over five years), and affordability is increasingly a challenge.
Average homeowners in Austin now face yearly costs of over $61,800, while renters are paying about $44,000. That said, newcomers moving to Austin still see value in the cultural cachet, music scene, thriving tech economy, and access to green space like Lady Bird Lake and Zilker Park.
The city’s inclusion in the top 50 proves that while Austin is evolving, it’s still a draw—especially for professionals who want to live where the innovation is happening and are willing to pay a bit more to do so.
Why Affordability Matters for Newcomers
With inflation, rising home prices, and fluctuating interest rates, many families and professionals are no longer aiming for the heart of downtown. Instead, they’re finding excellent opportunities in places where home values are lower, yet access to employment and lifestyle perks remains strong.
These affordable cities near Austin offer the best of both worlds: more breathing room financially and a close connection to the booming Central Texas region.
Other Nearby Cities to Watch
While not all cities on the GOBankingRates list made the final top 10, there are several other Central Texas spots that newcomers moving in Austin should keep an eye on:
- Pflugerville (not listed, but commonly considered affordable and family-friendly)
- Georgetown, just north of Round Rock, known for its scenic charm and retirement-friendly communities
- Leander and Cedar Park, both of which continue to attract new developments and young families seeking space and quality schools
These areas didn’t make the formal top 50 rankings this year but remain part of the affordable Austin suburbs conversation due to their consistent growth and lower cost of living compared to central Austin.
Final Thoughts: Making a Smart Move in 2025
If you’re considering relocating to the Austin area, the secret may not be in the city itself—but just outside it. Cities like Round Rock, Killeen, and Denton are proving that you don’t have to sacrifice opportunity to afford a better life.
Whether you’re a remote worker, a growing family, or a retiree looking to downsize, these affordable cities near Austin in 2025 offer excellent alternatives with promising futures. Make your move smart—and a little strategic.
