Cost of Living in Nashville, TN

An Overview of Cost of Living in Nashville, TN

Are you thinking about relocating, but curious about the potential cost of living in Nashville? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Nashville stands at 108, making it 8% higher than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.

The cost of living in Nashville closely mirrors the national average in comparison to other cities nationwide. Essential items such as groceries, goods and services, health care and utilities are priced at a level consistent with similar urban areas. This means that residents of Nashville can anticipate that their daily expenses will remain reasonably in line with those of an average city, contributing to a manageable cost of living.

When it comes to the cost of living in Nashville, housing costs are a real heavyweight, often hogging a significant chunk of your earnings. Sadly, in this area, housing expenses for both buying and renting were 37.3% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.

What Do Locals Say About the Cost of Living in Nashville?

Nobody knows their city better than the people who actually live there. So, we asked 40 local residents how they would rate the cost of living in Nashville and this is how they responded. 33% of people said that the cost of living was affordable, with prices decreasing, while 68% of people said that the cost of living was very expensive and prices continue to rise.

Is Nashville Affordable?

Is Nashville affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Nashville, the median home price is 43.3% higher than the national average and monthly rent prices are 23.3% higher than the typical rates. Additionally, the median income levels play a role in affordability, with Nashville boasting a median household income of $62,087, 12.2% higher than the national average.

What Factors can Influence the Cost of Living in Nashville?

Transportation: When public transportation options are limited or non-existent, residents frequently resort to vehicle ownership, which can significantly contribute to the overall cost of living. Monthly financial obligations encompass fuel, insurance, regular maintenance and potentially lease or financing expenses. In Nashville, the transportation index is 8.2% lower than the national average.

Utilities: Similar to the prices of any goods or services, utility expenses can fluctuate widely, contingent on variables such as climate, available energy sources, geographical location and state regulations. Costs associated with electricity, water, heating, and waste disposal can differ in magnitude, depending on the specific city or state. In Nashville, the utilities index registers at 2.1% higher than the national average.

Taxes: Regions that impose higher taxes, including sales and income taxes, can contribute to an increased cost of living. Higher taxes for everyday necessities such as clothing, utilities and food inevitably leads to higher expenditures. Additionally, a higher income tax rate can also play a role in elevating the overall cost of living. In Nashville, the prevailing sales tax rate starts at 7%, and income tax rates kick off at 0%.

Where is the Data From?

The Nashville cost of living data you see above is sourced from the C2ER cost of living index, providing a practical and accurate means of comparing living expenses in urban areas. Updated quarterly, this index gathers data from over 300 independent researchers, covering more than 60 goods and services, in 6 different categories. These selections are made meticulously to represent a wide range of consumer expenditure categories. The weightings applied to cost differences are based on government survey data that tracks spending patterns among professional and executive households. It's important to note that while the C2ER index excludes data on sales or income tax rates, AreaVibes factors tax rates into the overall cost of living score for each region.