When you're a tech worker thinking about moving, two cities keep popping up: Chicago and Austin. Both have booming tech scenes, strong startup energy, and plenty of job openings. But if you're trying to decide where to land, the real question isn't just about job titles-it's about what your paycheck actually buys you. And that comes down to one thing: cost of living.
Housing: The Big Difference
Housing is where Chicago and Austin pull far apart. In Austin, median rent for a one-bedroom apartment hit $1,850 in early 2026. That’s up 12% from last year. In some neighborhoods near the tech corridor near South Lamar or East Austin, you’re looking at $2,200 or more for a basic unit with no in-unit laundry. The city’s population surge-over 1.1 million people added since 2010-has crushed supply. New builds can’t keep up. And if you want a two-bedroom? You’re easily looking at $2,600.
Chicago? It’s different. The same one-bedroom? Around $1,450. Two-bedroom? $1,900. You can find solid units in neighborhoods like Logan Square, Ukrainian Village, or even closer to the Loop without breaking the bank. Yes, prices have gone up since 2020-but not nearly as fast as Austin’s. Chicago’s housing stock is older, yes, but there’s a lot more of it. Thousands of walk-up apartments, converted warehouses, and mid-rise buildings mean options. You’re not competing with 20 other applicants every time you apply.
Utilities, Groceries, and Daily Costs
It’s not just rent. Groceries in Austin are about 8% pricier than in Chicago. A gallon of milk? $4.10 in Austin. $3.75 in Chicago. A dozen eggs? $4.50 vs $3.90. That adds up over time. Gas prices are nearly identical-around $3.20 a gallon-but Austin’s heat means higher AC bills. In summer, your electric bill can hit $200+. Chicago winters? Heating costs more, but your electric bill in winter averages $150. In Austin, summer bills often double that.
Even simple things like dining out or coffee cost more in Austin. A latte? $5.50 in Austin. $4.75 in Chicago. A meal at a decent mid-range restaurant? $22 in Austin. $18 in Chicago. You’re not talking about a few bucks here-you’re talking hundreds a month. That’s a $400-$600 difference just on food and drinks alone.
Transportation: Car Culture vs Public Transit
Austin is built for cars. Public transit is weak. The MetroRail only covers a few corridors. Most tech workers drive. And that means car payments, insurance, and parking. Austin’s car insurance rates are among the highest in Texas-averaging $2,100 a year. Chicago? Around $1,600. And you can get around here without a car. The CTA has 12 train lines and 140 bus routes. Many tech workers in Chicago live near the Red Line or Blue Line and never own a vehicle. That saves $300-$500 a month right there.
In Austin, if you don’t drive, you’re stuck. Uber and Lyft are expensive. A 10-mile ride can cost $25. In Chicago, a 10-mile ride is $18. And if you bike? Austin has bike lanes, but they’re patchy and dangerous in summer heat. Chicago has over 300 miles of protected bike lanes-and winters are brutal, but the city plows them. You can bike year-round with the right gear.
Taxes: What They Don’t Tell You
Austin touts no state income tax. That sounds great-until you look deeper. Texas makes up for it with some of the highest property taxes in the U.S. Median property tax rate in Austin: 2.2%. In Chicago? 2.4%. Close. But here’s the twist: Chicago’s property taxes fund better schools and public services. Austin’s taxes go to road expansion and sprawl. You’re paying more in Austin for less return.
Also, Chicago has higher sales tax-9.25% in the city. Austin is 8.25%. But groceries and prescription meds are exempt in both. So unless you’re buying a lot of non-essential stuff, it doesn’t change much. The real tax impact? Housing. In Austin, your home value might be $450,000. In Chicago, $320,000 for a similar-sized home. Your property tax bill? $9,900 in Austin. $7,680 in Chicago. That’s a $2,200 difference every year.
Job Market: Pay vs. Price
Yes, Austin pays more. Software engineers average $135,000 here. In Chicago? $118,000. But that $17,000 gap disappears fast. After housing, groceries, utilities, and transportation, your take-home purchasing power is nearly identical. A tech worker making $135k in Austin has the same lifestyle as someone making $115k in Chicago. Maybe even less, because Austin’s cost creep is relentless.
And job stability? Chicago’s tech scene is older, more diversified. You’ve got established companies like Motorola Solutions, Allstate, and United Airlines’ tech teams. Austin’s scene is startup-heavy. More opportunity? Sure. But also more volatility. Layoffs hit Austin harder in 2023 and 2024. Chicago’s tech jobs are more resilient.
Quality of Life: What You Actually Get
Austin has music, food trucks, and outdoor culture. Chicago has deep-dish pizza, lakefront trails, and world-class museums. Both are vibrant. But Austin’s growth has strained infrastructure. Traffic is worse than ever. Water shortages are becoming seasonal. The city’s sprawl means longer commutes-even if you work downtown, you might live 30 minutes out.
Chicago’s winters are harsh, yes. But its summers are mild. You get four distinct seasons. Parks are well-maintained. Public spaces are designed for people, not cars. The city has invested in bike infrastructure, libraries, and community centers. You don’t have to drive to feel connected.
Bottom Line: Where Your Money Goes Further
If you’re a tech worker looking at a move, here’s the truth: Austin looks glamorous. Chicago looks practical. But if you care about keeping more of your paycheck, Chicago wins. The numbers don’t lie. For the same job, you’ll spend $1,200-$1,500 less per month on living expenses in Chicago. That’s over $18,000 a year. You could pay off student loans. Save for a down payment. Take a real vacation.
Austin might have the buzz. But Chicago has the balance. And in the long run, that’s what matters more than the hype.
Is Austin really more expensive than Chicago?
Yes, by a significant margin. Housing, groceries, utilities, and transportation all cost more in Austin. A tech worker earning the same salary in both cities will spend roughly $1,200-$1,500 more per month in Austin. That adds up to over $18,000 a year in extra expenses.
Why are housing prices so high in Austin?
Austin’s population has grown over 30% since 2010, but housing construction hasn’t kept pace. Zoning laws limit density, and development has focused on sprawling suburbs instead of multi-family units. Demand from remote workers and tech companies flooding in has created a severe shortage, pushing prices up faster than any other major U.S. city.
Does Chicago have enough tech jobs?
Yes. Chicago has over 120,000 tech workers and is home to major tech hubs like the Loop, River North, and Fulton Market. Companies like Motorola Solutions, United Airlines, Exelon, and Allstate have large engineering teams. Startups are growing fast too, with funding up 22% in 2025. It’s not as flashy as Austin, but it’s stable and diverse.
Can you live in Chicago without a car?
Absolutely. Over 60% of Chicagoans don’t own a car. The CTA has 12 train lines and 140 bus routes covering nearly every neighborhood. Many tech workers live near the Red Line or Blue Line and commute without ever driving. Bike infrastructure is also among the best in the Midwest, with over 300 miles of protected lanes.
Which city has better public services?
Chicago invests more in public services per capita. Libraries, parks, public transit, and community centers are better funded and maintained. Austin’s services are stretched thin due to rapid growth. Schools, road maintenance, and water infrastructure are under pressure. You pay higher property taxes in Austin, but you get less in return.