How Much Does It Cost to Live in Nashville?

Considering a move to Nashville? You’re not alone. More than 82 people move to the city every day, according to LiveIt Nashville; that’s nearly 30,000 people per year! There are plenty of reasons to come, though. The city has a thriving economy with an unemployment rate of just 4.2 percent compared to the national rate of 6.1 percent, according to the U.S. Bureau of Labor Statistics.

Nashville is also part of a growing and diverse metropolitan area. While the city itself has a population of 678,448, according to World Population Review, the Nashville-Davidson-Murfreesboro-Franklin Metro Area tops 2 million residents. More than 10,000 people move to Nashville from other countries every year, and the city boasts the largest Kurdish community in the world outside of the Middle East.

Then, there’s the quality of life. Nashville has more than 630 art, music and cultural destinations as well as 200 public parks and four professional sports teams. And, of course, it’s one of the best cities in the nation for music lovers. Nashville has live music every day of the week at more than 120 music venues. Need anymore reason to move? Keep reading for a closer look at the cost of living in Nashville and to learn why so many people are moving here.

Cost of living

According to AreaVibes, Nashville has an overall cost of living index score of 95, 5 percent lower than the national average. The cost of living index indicates how expensive (or inexpensive) it is to live in a particular city. If a city’s index score is higher than 100, then the cost of living is above average. If a city’s index score is lower than 100, then the cost of living is below average.

By comparison, the cost of living in Nashville is significantly lower than other major cities, including New York City, San Francisco, Seattle, Boston and Los Angeles. According to Numbeo, the estimated monthly costs, not including rent, for a family of four living in Nashville are $3,427.94.

Jobs

According to The Wall Street Journal, Nashville is the second hottest job market in the United States based on unemployment rate, labor-force participation rate, job growth, labor-force growth and wage growth. The news outlet, working with Moody’s Analytics, noted the city’s low unemployment rate and high labor-force growth in ranking it number two.

Overall, there are more than 53,000 businesses in the Nashville-Davidson-Murfreesboro-Franklin Metro Area, according to the Nashville Chamber of Commerce. Top industries include healthcare, tourism and hospitality, music and entertainment, technology and manufacturing. Looking for a job? You may be able to find one at Nissan North America, Bridgestone Americas, Dollar General, HCA Healthcare, iHeartMedia, Mitsubishi Motors, The ICEE Company and Amazon. All have headquarters in Nashville.

Nashville is also one of the best cities in the nation for starting a business, according to WalletHub, Kiplinger, the Surge Cities Index and Kauffman. One reason is the Nashville Entrepreneur Center connects startups to more than 250 entrepreneurial resources and offers diversity scholarships for those from underrepresented backgrounds including women, veterans, LGBTQIA+ and people of color.

Salary

The city’s median household income is $70,262, with a typical resident making $37,696, according to the U.S. Census data. Nationally, the median household income is $65,712, meaning Nashville families earn an average 10 percent more than people in other cities. On a per capita basis, Nashville residents earn just slightly more than the national average of $35,672.

Wages may be higher in Nashville because, on average, residents tend to be more educated. U.S. Census data indicates that 38.5 percent of the city’s residents have a bachelor’s degree or higher compared with 33.1 percent of citizens nationally.

Real estate

Real estate in Nashville is a hot commodity. According to Realtor.com, the housing market is trending up 11.6 percent year-over-year in Nashville. The median listing home price is $374,000, with an average cost off $232 per square foot. This is quite a bit higher than the national median home listing price of $293,000.

According to the most recent U.S. Census Data, there are 733,787 households in the metropolitan area, with an average of 2.6 people in each household. Roughly 66 percent of all homes are owner occupied, and you can expect to pay at least $1,420 in monthly housing costs. If you rent, be prepared to pay $1,514 per month, which is higher than the national average of $1,120, according to Rentable.

Taxes

There is no personal income tax in Tennessee. By moving from a state that has personal income tax, you’ll automatically save between 3 and 10 percent of your income—or $3,000 to $10,000 for every $100,000 you earn—in Nashville. However, the state does have a special tax called the Hall income tax, which applies to taxable interests and dividend income. This tax is currently being reduced by 1 percent per year and will officially disappear in 2022.

Instead, the state relies on its sales tax rate of 7 percent and sin tax for revenue. Currently, Tennessee has the highest excise tax rate on beer in the nation at $1.29 per gallon.

Sales tax in Nashville is fairly steep. In addition to the state’s 7 percent sales tax, you’ll pay a 2.25 percent Davidson County sales tax for a total of 9.25 percent. This makes Nashville’s sales tax one of the highest in the nation.

Transportation

If you plan to drive to work, you’ll pay a little less at the pump in Nashville. According to Gasbuddy.com, the average price of regular unleaded gas in Nashville is $2.89 per gallon compared to the national average of $3.04 (at the time this article was written). Unfortunately, you’ll likely spend more time on the road. The average commute to work in the metropolitan area is 28.5 minutes, according to the U.S. Census Bureau. That is slightly higher than the national average commute of 27.6 minutes.

As an alternative to driving, you can take public transportation. The Nashville Mass Transit Authority, rebranded as WeGo Public Transit, has more than 50 routes, including express routes, that stretch across the entire city. Rides cost $2 and must be paid in cash at a meter near the front of the bus. The Music City Star—now WeGo Star—train has seven stations and runs throughout the metropolitan area. Tickets cost $5.25.

Other reasons to move to Nashville

Besides low unemployment, an abundance of jobs and a low cost of living, there are several other reasons to move to Nashville.

• It’s Music City. Nashville has more than 120 performance venues and is home to the Grand Ole Opry, Country Music Hall of Fame, Musicians Hall of Fame and Museum, National Museum of African American Music, the Ryman Auditorium and RCA Studio B. Not to mention you can listen to free live music on street corners, bars and restaurants throughout the city.
• There’s always something to do. Nashville has more than 425 downtown restaurants, bars, nightlife venues and coffee shops. If you love art, museums and culture, you’ll find more than 630 opportunities to experience them throughout the metropolitan area. Additionally, there are 80 miles of paved, multi-use trails throughout the city and 30,000 acres of inland lakes nearby.
• Nashville is centrally located. More than 75 percent of the nation is within a 2-hour flight of the city. Plus, three major interstates intersect in Nashville: I-40, I-24 and I-65.

Ready to move to Nashville?

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