Cost of Living in Nashville, Tennessee

Nashville, Tennessee, known affectionately as Music City, has become one of the most desirable places to live in the United States. With its vibrant culture, thriving job market, and southern charm, it’s no wonder that so many people are flocking to this dynamic metropolitan area. But before you pack your bags and head to Nashville, it’s essential to understand the cost of living in Nashville TN compared to other cities across the country. In this blog post, we will explore the various factors that contribute to the cost of living in Nashville, TN.

Understanding Nashville’s Cost of Living Index

The cost of living index provides a valuable framework for comparing expenses between different locations. According to recent data, the overall cost of living index for Nashville is approximately 1% lower than the national average. This is great news for those considering a move to Music City, as it means your dollar generally stretches further here than in the average U.S. city. This advantage becomes even more significant when compared to other major cities like San Francisco, where the cost of living can be as much as 70% higher than the national average.

Nashville’s position as a growing metropolitan area means that its cost of living has been steadily changing, though it remains more affordable than many major cities. The city’s popularity among young professionals, musicians, healthcare workers, and families has driven demand for housing and services, influencing the overall living expenses.

When examining Nashville’s cost of living index, it’s worth noting that the figures can vary depending on which specific area of the Nashville metro area you’re considering. The cost of living in downtown Nashville will naturally be higher than in outlying suburbs or neighboring communities like Hendersonville, Murfreesboro, or Franklin.

Nashville’s cost of living breaks down into several key categories:

• Housing costs: 6% higher than national averages
• Utility costs: 1% higher than national average
• Transportation costs: 9% lower than national average
• Nashville food costs: on par with national average
• Nashville healthcare: 8% lower than national average

These percentages help illustrate how Nashville compares to the national average cost of specific expense categories. The variation between categories demonstrates that while some aspects of living in Nashville might be more expensive, others provide cost benefits that help offset the higher expenses.

Let’s dive deeper into each of these categories to give you a comprehensive understanding of what it costs to live in Nashville.

Housing Costs in Nashville

Housing prices in Nashville have seen significant growth over the past decade, with the average home price now standing at approximately $436,000. This represents a substantial increase over the last ten years, reflecting Nashville’s growing popularity and the city’s status as a desirable relocation destination.

In Tennessee, residential property tax is based on the assessed value, which is a percentage of the appraised value. This means that homeowners in Nashville need to be aware of how these values are determined to understand their property tax liabilities.

Home Prices

Home prices in Nashville vary significantly depending on the neighborhood. Properties in downtown Nashville and the city center command premium prices, while homes in the greater Nashville metro area offer more affordable options. Single family homes in desirable neighborhoods can range from $400,000 to well over $1 million, depending on location, size, and amenities.

The real estate market in Nashville continues to be competitive, with many properties receiving multiple offers and selling above asking price. This trend is particularly pronounced in sought-after neighborhoods like 12 South, The Nations, and East Nashville. Inventory levels have remained relatively tight, contributing to the upward pressure on home prices throughout Davidson County and surrounding areas.

New construction has been booming in Nashville, with developers working to meet the increased demand for housing. However, construction costs and land prices have also risen, meaning that even newly built homes often come with premium price tags. Many buyers are finding better value in slightly older homes that they can renovate to meet their needs.

Housing affordability has become a significant concern for many Nashville residents, particularly those in service industries or entry-level positions. The gap between the average annual salary and housing costs continues to widen, challenging many long-time residents and newcomers.

Rent Prices

For those not ready to buy, the average rent in Nashville has increased substantially. The median rent in Nashville is currently $2,000 per month. Rent prices in Nashville’s city center tend to be higher, with luxury apartments commanding premium rates.

Nashville’s growing population of young professionals has driven demand for rental properties, particularly in trendy neighborhoods like East Nashville, The Gulch, and Germantown. One-bedroom apartments in desirable areas can cost $1,700 per month, while two-bedroom units can go for $1,800-$2,500 depending on location and amenities.

Many Nashville residents find that having roommates is a practical way to manage housing costs, especially when first moving to the city. This approach is particularly common among young professionals and those working in the entertainment or service industries.

Some Nashville residents choose to live in surrounding communities like Antioch, Madison, or Hermitage, where rental prices tend to be more affordable while still providing reasonable access to the city center. The trade-off often involves longer commute times and potentially fewer amenities, though many suburban areas are developing their own entertainment and dining scenes.

Utility Costs in Nashville

The average utility costs in Nashville are slightly higher than the national average (by about 1%), with residents paying a bit more for essential services. A typical monthly energy bill in Nashville runs around $200. This typically includes electricity, water, sewer, and trash services.

Nashville’s primary electricity provider is Nashville Electric Service (NES), which serves Davidson County and portions of the surrounding areas. Water service is provided by Metro Water Services. Both utilities offer various payment plans and assistance programs for qualifying residents.

Seasonal variations can impact your utility bills significantly in Nashville. Summer months (June-September) often see higher electricity costs due to air conditioning needs in the hot, humid Tennessee summer. Winter bills (December-February) can spike during cold snaps, though Nashville’s relatively mild winters mean heating costs are generally lower than in northern states.

Phone bills in Nashville average around $195.28 per month, which typically includes cell phone service and home internet. Internet service generally ranges from $50-$80 per month, depending on the provider and speed. The main internet providers in Nashville include Comcast Xfinity, AT&T, and Google Fiber in select areas, giving residents several options to choose from.

Cell phone service has good coverage throughout the Nashville metro area from all major carriers. Many Nashville residents bundle their internet and cable or streaming services to save money on these utility costs.

Food Costs in Nashville

When it comes to groceries and dining out, Nashville food costs run about on par with the national average cost. Popular grocery stores in the area include Kroger, Publix, Trader Joe’s, and Whole Foods.

Recent data shows typical grocery prices in Nashville include:

• Loaf of bread: $3.96
• Gallon of milk: $4.67
• Carton of eggs: $3.46
• Bunch of bananas: $0.72
• Hamburger: $5.53

For a single person, monthly grocery expenses typically range from $300-$400, depending on personal preferences and shopping habits. Dining out is a significant part of Nashville’s culture, with options ranging from affordable Southern cuisine to high-end restaurants. A meal at a mid-range restaurant might cost $15-25 per person, while fine dining can easily exceed $50-100 per person. Careful budgeting can help manage these costs, ensuring that residents can enjoy Nashville’s vibrant food scene without overspending.

Nashville’s food scene has exploded in recent years, with new restaurants opening regularly across the city. While this provides residents with excellent dining options, it can also tempt them to spend more on eating out than they might in cities with fewer culinary attractions.

Many Nashville neighborhoods host farmers’ markets, providing access to fresh, locally grown produce, often at competitive prices. The Nashville Farmers’ Market, located downtown, operates year-round and features both local farmers and artisanal food vendors.

Food delivery services like DoorDash, Uber Eats, and Grubhub are widely available throughout Nashville, adding convenience but also potentially increasing food costs for those who use these services frequently.

Transportation Costs in Nashville

Getting around Nashville is more affordable than in many other cities, with transportation costs running about 9% lower than the national average. While public transportation exists in the form of buses operated by WeGo Public Transit (formerly known as the Metropolitan Transit Authority), most residents rely on personal vehicles to navigate the city.

A monthly pass for WeGo costs around $65 for unlimited rides, making it an affordable option for those living and working along established routes. For a single paying passenger, a one-way fare is typically $2, with options for a four ride pass or daily/weekly passes.

Gas prices in Nashville tend to be lower than the national average, typically around $3.09 per gallon. However, residents often find themselves driving a greater distance than in more densely populated cities. The average Nashville resident commutes about 25 minutes each day, though this can vary depending on where you live and work.

Car insurance in Nashville is relatively affordable compared to other major cities, with average annual rates around $2,296. For those opting for a full coverage policy, the average annual cost is higher, but it provides more comprehensive protection compared to minimum coverage. Here are the state minimum car insurance requirements in Tennessee:

• $25,000 bodily injury liability per person
• $50,000 bodily injury liability per accident
• $25,000 property damage liability per accident

Rideshare services like Uber and Lyft are widely available throughout Nashville, providing convenient transportation options for those who don’t want to drive or use public transit. These services are particularly popular in downtown Nashville and surrounding entertainment districts where parking can be limited and expensive.

For those who prefer active transportation, Nashville has been improving its bicycle infrastructure, though the city still has work to do to become truly bike-friendly. The expansion of greenways and dedicated bike lanes has made cycling a more viable option in certain parts of the city.

Healthcare Costs in Nashville

Nashville healthcare costs are 8% below the national average, which is remarkable given the city’s status as a healthcare industry hub. Nashville is home to Vanderbilt University Medical Center, TriStar Centennial Medical Center, and numerous other medical facilities, providing residents with excellent healthcare options.

According to recent data, healthcare costs in Nashville include:

• Doctor’s visit: $129.64
• Dentist visit: $106.61
• Optometrist visit: $118.74
• Prescription drugs: $225.08
• Veterinary visit: $65.64

The average health insurance plan for a Nashville resident costs $558 per month for an individual.

Vanderbilt University not only contributes to the healthcare landscape but also serves as one of the city’s largest employers, offering jobs in healthcare, education, and research. The healthcare sector is a significant driver of Nashville’s economy, with HCA Healthcare, Community Health Systems, and numerous other healthcare companies headquartered in the area.

The abundance of healthcare facilities in Nashville means that residents generally have good access to both primary care and specialized medical services. Wait times for appointments tend to be reasonable, and the quality of care is generally high.

For seniors considering a move to Nashville, the city offers numerous specialized healthcare facilities and retirement communities. The presence of major healthcare systems means that geriatric care and specialized services for older adults are readily available throughout the Nashville area.

Taxes in Nashville and Tennessee

One of the most significant financial advantages of living in Nashville is Tennessee’s lack of a state income tax on wages. This means more of your paycheck stays in your pocket compared to many other states.

However, Tennessee does have one of the highest combined state and local sales tax rates in the country. Tennessee also has a 7% percent state sales tax rate and an average combined state and local sales tax rate of 9.55%. This higher sales tax applies to most purchases, including groceries (though at a lower rate than general merchandise).

Davidson County adds an additional 2.75% to the state’s 7% base sales tax, contributing to the overall sales tax rate.

Property taxes in Davidson County are divided between the Urban Services District and the General Services District. Rates vary, but they’re generally lower than in many other major cities across the country.

Nashville Childcare Costs

Families moving to Nashville should be prepared for Nashville childcare costs, which can be substantial. Full-time daycare for one infant can range from $800-1,200 per month, depending on the facility and location. Preschool costs are similar, making childcare a significant budget item for families with young children.

After-school programs and summer camps also add to the cost of raising children in Nashville, though the city offers numerous options at varying price points.

Cost Comparison: Nashville vs. Other Cities

When comparing Nashville’s cost of living to other cities, it’s important to consider the complete financial picture:

Expense Category	Nashville	National Average
Overall Index	99	100
Housing	106	100
Utilities	101	100
Transportation	91	100
Food	100	100
Healthcare	92	100

As you can see, while Nashville is slightly above the national average in some categories like housing and utilities, it’s below average in transportation and healthcare, resulting in an overall cost of living that’s 1% below the national average. This makes Nashville significantly more affordable than many coastal cities and other major metropolitan areas.

For perspective, someone earning $100,000 in Washington D.C. would need approximately 28.7% less to maintain the same standard of living in Nashville, according to cost of living calculators. This substantial difference illustrates why many people from more expensive cities find Nashville an attractive relocation destination.

Housing costs in Nashville are particularly favorable compared to cities like San Francisco, New York, Boston, or Los Angeles. While Nashville’s housing is 6% above the national average, it’s still a fraction of what you would pay in these major coastal markets.

Income and Affordability in Nashville

To live comfortably in Nashville, financial experts recommend an annual income of at least $80,000 for a single person or $100,000+ for a family. The average annual salary in Nashville is approximately $67,000, which means many residents need to budget carefully or have dual-income households.

Job opportunities in Nashville are plentiful, particularly in healthcare, music and entertainment, education, hospitality, and technology. The city has seen significant growth in tech startups and corporate relocations in recent years, bringing higher-paying jobs to the area.

Affordable Cities Near Nashville

If you’re looking to enjoy the Nashville lifestyle while keeping your cost of living lower, consider these nearby cities and towns that offer more affordable housing while still providing reasonable access to all that Music City has to offer:

1. Gallatin – Located about 30 minutes northeast of Nashville, Gallatin offers a small-town atmosphere with significantly lower housing costs. The city has seen growth in recent years but maintains a more relaxed pace than Nashville proper. With its historic downtown, access to Old Hickory Lake, and growing dining scene, Gallatin provides excellent value for those willing to commute.
2. Lebanon – About 30 minutes east of Nashville, Lebanon combines small-town charm with affordability. Housing costs here run 15-20% lower than in Nashville, making it an attractive option for budget-conscious buyers. The city offers easy access to Nashville via I-40 and has its own distinct character with a historic downtown square.
3. Springfield – Located 40 minutes north of Nashville, Springfield offers significantly lower housing costs in a charming small-town setting. With a historic downtown square, community events, and a more relaxed pace of life, Springfield appeals to those looking for affordable living with character while still maintaining access to Nashville’s amenities.
4. Murfreesboro – About 35 minutes southeast of Nashville, Murfreesboro is a rapidly growing city that still offers housing prices lower than Nashville proper. Home to Middle Tennessee State University, it has a college-town vibe with plenty of amenities, dining options, and shopping. The city has seen significant development but remains more affordable than Nashville.
5. Hendersonville – Located northeast of Nashville along Old Hickory Lake, Hendersonville offers beautiful waterfront living at more reasonable prices than comparable areas in Nashville. It’s become increasingly popular with commuters who want lakeside living with a reasonable drive to the city.
6. Mount Juliet – Just 20 minutes east of Nashville, Mt. Juliet has grown tremendously in recent years but still offers housing at lower price points than Nashville. With excellent shopping, dining options, and a direct connection to downtown Nashville via the WeGo Star commuter rail, Mt. Juliet provides convenience with better value.

These surrounding communities offer various advantages beyond just lower housing costs. Many residents appreciate the smaller-town feel, less traffic, and stronger sense of community these areas provide. Commute times are a consideration, but many find the trade-off worthwhile for the significant savings in housing costs.

Tips to Save Money in Nashville

Nashville offers plenty of opportunities to save money while enjoying everything the city has to offer:

1. Consider living outside the city center – Housing costs drop significantly as you move away from downtown Nashville, leading to a lower cost of living.
2. Take advantage of free entertainment – Nashville offers numerous free concerts, festivals, and cultural events.
3. Utilize Nashville’s parks and outdoor spaces – The city has beautiful free parks and greenways.
4. Look for happy hour specials – Many restaurants offer discounted food and drinks during off-peak hours.
5. Explore Nashville’s library system – Free books, movies, and cultural programs.

Using a Cost of Living Calculator

Before making a move to Nashville, it’s helpful to use a cost of living calculator to compare your current location with Nashville. These tools allow you to input your current salary and living expenses to see how far your money will go in Nashville. They can provide valuable insights into how your housing, utility prices, transportation, and other living expenses might change.

Is Nashville Worth the Cost?

Despite rising costs, Nashville offers significant value for many residents. The combination of no state income tax, a strong job market, vibrant culture, and good quality of life makes Nashville an attractive destination for people from all walks of life.

The city’s southern charm, coupled with its metropolitan amenities, creates a unique living experience that many find worth the cost. Personal preferences and financial situations will ultimately determine if Nashville is the right fit for your lifestyle and budget.

Nashville’s Future Cost Outlook

Economic forecasts suggest that Nashville’s growth will continue, potentially leading to further increases in the cost of living. However, new housing developments and infrastructure improvements may help moderate these increases in certain areas of the Nashville metro area.

The city’s ongoing infrastructure projects, including roadway improvements, public transportation enhancements, and new pedestrian-friendly developments, aim to improve quality of life while addressing the challenges that come with rapid growth. The Nashville Metro Council has also been discussing various affordable housing initiatives to help ensure that the city remains accessible to residents across all income levels.

Nashville’s appeal to major corporations continues to grow, with several significant companies either relocating headquarters or establishing substantial operations in the area. These corporate moves bring higher-paying jobs but also increase demand for housing and services, creating a complex economic environment that affects the cost of living.

Tourism remains a significant economic driver for Nashville, with millions of visitors coming to experience Music City each year. While this brings revenue and jobs to the area, it also contributes to higher prices in entertainment districts and popular neighborhoods, affecting everyday costs for residents.

For those considering a long-term move to Nashville, investing in property now could be advantageous, as home prices are expected to continue rising, though perhaps at a more moderate pace than in recent years. The current interest rate environment plays a significant role in housing affordability, so prospective buyers should work with knowledgeable local real estate and mortgage professionals who understand the Nashville market’s unique dynamics.

Ready to Make Nashville Your Home?

If you’re considering a move to Nashville or anywhere in Middle Tennessee, Bernie Gallerani and his team are here to help you navigate the local real estate market. With extensive knowledge of Nashville neighborhoods, housing costs, and market trends, we can help you find the perfect home that fits both your lifestyle and budget.

Our expert realtors understand Nashville’s unique market and can guide you through every step of the buying process, from finding neighborhoods that offer the best value to negotiating the best price for your dream home. We serve all of Nashville and the surrounding Middle Tennessee areas, providing personalized service tailored to your specific needs.

What sets Bernie Gallerani Real Estate apart is our deep understanding of Nashville’s diverse neighborhoods and our commitment to finding the right fit for each client’s specific needs. Whether you’re looking for a downtown condo with city views, a family-friendly suburban home with great schools, or an investment property in an up-and-coming area, we have the expertise to help you make a sound decision.

We pride ourselves on being more than just real estate agents – we’re Nashville lifestyle consultants who can help you understand not just the property you’re buying, but the community you’re joining. Our local knowledge extends beyond property values to include information about schools, amenities, commute times, and neighborhood characteristics that might not be obvious to newcomers.

For clients who need financing assistance, we work closely with Xperience Mortgage, our in-house mortgage company, to provide seamless service from home search through closing. Their team of mortgage professionals can help you understand your financing options and secure the best possible terms for your Nashville home purchase.

Contact Bernie Gallerani Real Estate today to discover how we can help you make Nashville your new home sweet home! Let us put our expertise to work for you as you navigate the exciting journey of making Music City your home.