Recently, I had a conversation with a reader who moved to Austin for a job. They were contemplating whether to start with a studio or stretch their budget for a one-bedroom apartment. I thought many people might have similar concerns, so I want to take a look at the rental prices and sizes of different unit types in Austin.

First, studios have an average rent ranging from about $1,300 to $1,400, with an average size of around 500 square feet. Austin is a city where job changes in the tech industry are common, so many single professionals looking to live here plan to stay for a short period, typically between 6 months to 1-2 years, and often seek out studios.

Moving on to one-bedrooms, the average rent increases to about $1,490, with the size growing to around 750 square feet. I ultimately recommended a one-bedroom to the reader I spoke with, as having a separate room can significantly improve quality of life, especially for those who work from home. While the rent is about $100 more than a studio, the satisfaction level tends to be higher due to the additional bedroom.

For two-bedrooms, the average rent is between $1,760 and $1,800, with an average size of about 1,063 square feet. Austin has a vibrant roommate culture, so it's common for two graduate students or young professionals to sign a lease for a two-bedroom. Young couples with children are also frequently found in this category.

Three-bedrooms have an average rent of around $2,240, with an average size of about 1,361 square feet. Families with two or more children or groups of three looking to share rent typically seek these units. I also want to mention that three-bedrooms are not very abundant in downtown Austin, making them harder to find at desired times.

• Studio: about $1,350 / around 500 square feet
• 1 Bedroom: about $1,490 / 750 square feet
• 2 Bedroom: about $1,780 / 1,063 square feet
• 3 Bedroom: about $2,240 / 1,361 square feet

Looking at the supply, new developments in Austin tend to focus on building more studios and one-bedrooms. With a large influx of young people moving to the city, developers are catering to the demand for smaller units. Conversely, three-bedrooms are relatively scarce, which helps maintain their prices even during rental downturns.

The primary concern is how much you can trade off between rent and space. The jump in rent from a one-bedroom to a two-bedroom is typically larger than from a studio to a one-bedroom, as adding an extra bedroom also increases the shared living space. For Korean families, it might be practical to budget for a one-bedroom initially when settling in alone, and then switch to a two-bedroom once children or roommates come into the picture. Austin experiences significant fluctuations in rental prices depending on the time, so I recommend checking the latest market rates before signing a lease.