Is moving to Austin/Texas worth it? (Houston, Dallas: real estate, apartment)

[MovingCouple]

My wife and I(both 30) are from the NYC region and contemplating moving to Texas or Arizona. We received an inheritance and could easily buy a home all cash up here in NYC. However, I'd rather spend 200-400K in the south than spend 600-900K for a comparable in a NJ suburb - especially with the slowdown in real estate. Also rent is alot cheaper in Texas($700 vs $1900 for 1 BR I'm paying in Brooklyn).

My wife has had trouble getting a school psychology job because most openings require the person to know Spanish in NYC-she does not (she does currently have a tenured teaching job).
Unfortunately, I took a Voluntary Separation Package at my IT job last year in hopes of transitioning to a career in finance(worst possible timing). I'm now planning to try to get back into IT.

I have a few questions -
1. How is the IT job market in Austin? Can I realistically find a job that pays 50K - 60K? I was making 80K - 90K in NYC.

2. Are teaching or school psychologist job prospects good in Austin?

3. Would prospects for both teaching and IT jobs be better in Dallas or Houston?

I like the fact that housing is cheaper - but pay is lower too - and day to day costs like gasoline, food will probably be similar to the NYC region.

I'm just trying to figure out what would be the best thing to do for my family(no kids yet).
I'd really appreciate any help on these issues.

[TexasHorseLady]

Gas prices in Austin range from $1.45 to $1.69/gallon according to one of those "where to find the cheapest and most expensive gas" websites as of yesterday. How does that compare to NYC?

IT is pretty big here, though I don't know about the current market. (I can find out.) I do have a friend in IT who was making here what you could make in NYC, and more, but I don't know if that's typical. I'll ask, though.

Remember to consider Texas property taxes, but also remember to consider that we have no state or city income taxes. From some places, you're better off here tax-wise; from others, it's a wash.

Teaching and school psychologist jobs someone else will have to answer (I could find out about Dallas - my sister taught there, now retired, and both nieces are teachers, but Austin I don't really know about the job market for those here personally).

[love roses]

On the day to day costs...they are cheaper here than in NY. Ask #3 on the general Texas forum or the individual Dallas or Houston threads. I'm originally from Houston but the people I know there are in aerospace, medicine or accounting or small business owners. Not sure about IT. Same for the people I know in Dallas. I don't have any personal experience with IT either, so no help there, sorry

On the teaching question: I would like to eventually do the same and I'm going to say, yes, prospects are good in this area. There's been, and still is, lots of new growth and as a result, new schools popping up all over the place. I check my daughter's school website from time to time and it seems like they are frequently looking for people. I live 30 minutes outside of Austin though, so can't speak for AISD.

[MovingCouple]

Thank you for the replies.

About - gas - NYC is slightly more expensive. I think around $1.80. NJ is in the same range as Austin. I usually fill up the tank in NJ when visiting family.

I am concerned about the high property taxes - especially in a tough economy because you have to pay them no matter what - at least with a state/city income tax it all depends on how much you make. This why I was looking at Phoenix,AZ too(property tax is cheaper).

Property taxes from 5K - 8K I think could be manageable even if one of us didn't have a job. This is a reason why I'm contemplating going down there - I think outlasting a potential economic depression in the south would be easier than in NYC at least in terms of cost - job market in Texas will probably not be as robust as NYC though.

Another issue I'm concerned with is Utility costs(lots of AC needed). I think buying a small place rather than a big place would make more sense(2000 vs 4000 square feet). I think people are going to be surprised how expensive electricity and energy will get in the next decade.
How much is electricity per month $150 - $300?

[TexasHorseLady]

Somewhere in that range ($150-300/month), depending on energy efficiency of the house and size of the house and such things. What are you looking for?

One nice thing about Austin is that they've been "green" for a long time, and there are a variety of rebates available for making energy-efficient improvements to your home.

I got feedback from one person on IT. He says that job openings have dropped by about 40%, but they're still out there. His SWAG guess on salary compared to NYC (given that he has not a clue what your job title was) would be about 6 to 8% less than NYC, but he emphasizes that that is absolutely a guess.

[TX transplant]

For our 1300 sq. ft apartment, electricity comes to $150/month. I was told it was high and although we are very careful, we keep on getting the same amounts every month. Cathedral ceiling and miserable insulation probably contributes to that so beware if you choose to rent an apartment somewhere. They are all made of cardboard, sadly!

Job-wise, be prepared to struggle. The IT industry took a toll here, Austin having recently become one of the newest Sillicon Valleys. There's work, but there's also tons of competition and the market seems saturated at present. Dell laying off left and right isn't reassuring so the industry in this area seems to have halted the huge wage of recruiting.

Property taxes and state taxes level home prices in comparison to other areas. Not surprising, Uncle Sam does have to get his money from somewhere somehow.

Incomes are much lower although I concur that in the IT industry, you can probably end up making the same as in NYC.

Not sure about your wife but I have a friend who works as a speech therapist in a elementary school and doesn't speak a lick of Spanish. Texas seems to provide alternatives to non-English speaking children very well.

Good luck with your decision!

[achtungpv]

Depends on what you mean by "IT". If you mean software development, then the market is pretty good since there always seems to be a shortage of qualified staff. If you mean computer/network support then it is much more difficult since there's a ton of those guys in town.

[MovingCouple]

To be more specific- Java web development - developed/maintained a major financial firm's trading application. 7 years experience. Problem is that I majored in Econ not Comp Sci. Took a few courses in Comp Sci when I was at Cornell.

It would be nice to have a home in a good school district. I guess that would be Leander/Eanes ISD? Possibly Round Rock ISD? But at the 200K - 400K range, I guess I might have a hard time finding a place in these districts?(spend 500K or more on a house and I might be better off staying in NYC). And taxes would be higher in these nicer districts. Then again, my wife is a teacher so we could go to an average district and my wife could pick up the slack by teaching our child. My wife went to a substandard inner city school in NYC and still managed to go to Stuyvesant HS and an ivy league because her mother aided her learning.

3-4 bedroom would be nice - lower square footage would be OK. Pool would be nice but I know those are rare.

Is home insurance expensive?

Again thanks for the replies.

[TexasHorseLady]

You wouldn't have any problem finding a home in that price range in the Leander school district. Eanes, maybe not.

I did a quick search of the MLS using those basic parameters, including a pool (you didn't mention age of the house) and 37 hits turned up in the Leander, Lake Travis, Georgetown, and Dripping Springs school districts.

[iceshots]

We are paying about $1,000 per year for insurance on a 4,000 sq ft house ($475K) with a pool in Dripping Springs.