Nashville is one of the most popular places to live in the United States. It consistently ranks as one of the best cities for jobs, quality of life, and overall livability. But what is the cost of living in Nashville? In this blog post, we’ll take a look at some of the most important expenses you’ll need to budget for if you’re thinking about making Nashville your home.
What is the Cost of Living Index?
The cost of living index is a measure of how expensive it is to live in a given area. The index takes into account the prices of a basket of goods and services, including food, housing, transportation, and healthcare. The cost of living index can be used to compare the relative affordability of different places to live. For example, if the cost of living in New York City is twice as high as the cost of living in Nashville, then one would need to earn twice as much money to maintain the same standard of living in New York City. The cost of living index can also be used to assess the impact of inflation on the purchasing power of households. For example, if the cost of living increases by 2% but wages only increase by 1%, then workers are effectively getting a pay cut in real terms.
Nashville Housing Costs
Nashville is a booming city with a vibrant music and food scene, making it an attractive destination for young professionals. However, the cost of living in Nashville is relatively high, particularly when it comes to housing.
Depending on the area in Nashville that you’re looking to buy, home prices can vary significantly. The median home price in Nashville is $460,000. This is slightly above the national average of $428,000. If you are thinking about renting, the average monthly rent of a one-bedroom apartment is $1,800. The higher cost of living in Nashville can be attributed to the city’s rapid growth. In recent years, Nashville has seen an influx of new residents, resulting in increased competition for housing. As more people move to the city, prices are likely to continue to rise.
Nashville Transportation Costs
As Nashville has grown in popularity, the traffic has continued to get worse. Although public transportation is available, you will probably need a car to get around.
The average price of car insurance in Tennessee is $1,388 for a full-coverage policy, which is lower than the national average of $1,630.
Public transportation is available in the Nashville metro area. The standard fare is $2, children under four ride for free with a paying passenger, and both youth 19 and younger and seniors 65 and older pay only $1.
Nashville Food Costs
A single Nashville resident can expect to spend between $168-$357 each month on groceries, and a family of four around $775 – $900.
The most popular grocery stores in Nashville are Publix, Whole Foods, Kroger, Trader Joe’s, and Walmart.
Nashville Healthcare Costs
The average cost of a health insurance plan in Tennessee is about $537 per person, which is lower than the national average.
The average cost of a doctor’s visit is $95 – $160. A visit to the dentist costs $70 on average for a standard teeth cleaning.
There are eight hospitals within the city of Nashville. These include Vanderbilt University Medical Center, TriStar Centennial Medical Center, and Ascension Saint Thomas Hospital.
Nashville Utility Costs
Utility costs can vary greatly from house to house. With that being said, the cost of utilities in Nashville is slightly below the U.S. average, with a cost index of 99.3.
Data from 2019 shows that the average monthly utility bill for a 915-square-foot apartment in Nashville is about $160.
Nashville Childcare Costs
Tennessee families pay $7,500 annually on childcare, which is around 37% of the average wage in Tennessee.
Paying Taxes in Nashville
One great thing about living in Tennessee is that there is no state income tax! This means you’re keeping more of the money you earn on each paycheck. The sales tax in Tennessee is 7%, and Davidson County adds on an additional 2.25%. In total, Nashville residents can expect a 9.25% total sales tax rate.
The property tax rate in Davidson County for Urban Services District is $3.254, and the rate for General Services District is $2.922. Residential property tax is based on the assessed value, which is 25% of the appraised value.
Average Salary in Nashville, Tennessee
The average annual salary in Nashville is $66,750. That works out to be approximately $32.09 an hour. This is equivalent of $1,283 a week or $5,562 a month. Most salaries in Nashville range between $49,318 to $82,551 annually. The average household income in Nashville is $94,900, while the median household income is $61,710 per year.
Of course, salaries will vary depending on your occupation, experience, and many other factors.
Find Your Home in Nashville
If you would like help finding your dream home in Nashville, contact Bernie Gallerani Real Estate at (615) 488-8730 to get in touch with our team of professional real estate agents that can help you find the perfect Nashville home for you.