Should You Rent or Buy in Nashville?

Choosing between an apartment and a house in Nashville involves weighing costs, convenience, and lifestyle priorities. Here’s a checklist of pros and cons to consider:

• Apartments
  • ✅ Lower upfront costs and monthly rent
  • ✅ Fewer maintenance responsibilities
  • ❌ Less space and privacy
  • ❌ Pet restrictions and fees
• Houses
  • ✅ More space and yard access
  • ✅ Freedom to customize and renovate
  • ❌ Higher purchase price and down payment
  • ❌ Responsible for all repairs and upkeep

Let’s take a closer look at the cost differences between these housing options in Nashville, including rent, utilities, maintenance, and lifestyle factors to help you make an informed decision.

Renting vs. Owning in Nashville: What You’ll Pay

The cost of housing is a significant portion of most Nashvillians’ monthly budgets. Renting a 2-bedroom apartment in Nashville typically costs around $1,800 per month, while a 3-bedroom house may rent for closer to $2,450 monthly. The average rent for a 3BR house in Nashville is $2,450 per month.

For those considering homeownership, the median sale price for a single-family home in Nashville was $460,000 as of March 2023. With a 10% down payment and 6% interest rate, the monthly mortgage payment would be around $2,480 (not including property taxes, insurance, or HOA fees).

The cost of renting a 3BR house in Nashville has increased by 8% over the last year, with more affordable options available in neighborhoods like Antioch and Madison. Meanwhile, apartment rents have risen by about 6% in the same period.

Cost Comparison Table: Apartment vs House in Nashville

Here’s a side-by-side breakdown of common monthly costs for mid-range units in Nashville:

Estimates based on typical usage for mid-range units. Actual costs may vary.

Utility and Upkeep Differences

In addition to rent or mortgage payments, housing costs include ongoing expenses like utilities and maintenance. These tend to be higher for houses than apartments:

• Water/Sewer: Often included in apartment rent but paid separately for houses
• Electricity: Houses usually have higher bills due to more space to heat and cool
• Yard Care: Not applicable for most apartments but can add $100+ per month for houses
• Pest Control: Typically covered by apartment complexes but not for single-family homes

Houses also come with more repair responsibilities, like fixing broken appliances, leaky faucets, or damaged gutters. Homeowners should budget 1-2% of their home’s value annually for upkeep. Renters are generally not liable for these costs.

Lifestyle Tradeoffs Between Apartments and Houses

Aside from hard costs, there are qualitative differences to consider when choosing between an apartment and a house in Nashville. Many residents opt for apartments to be closer to downtown amenities and nightlife. Urban apartments often mean easier commutes, walkable neighborhoods, and less time spent on upkeep.

Houses, on the other hand, provide more privacy, outdoor space, and room to spread out. They’re popular with families who want a yard for kids and pets to play. Some prefer the freedom to paint, renovate, and make a house their own—which is limited in apartment living.

Parking is another consideration. Many Nashville apartments come with just one spot or require an additional fee for a garage space. Houses usually have private driveways and even room for an RV or boat. However, some urban neighborhoods have street parking only.

Which Is Cheaper Long-Term: An Apartment or House in Nashville?

While renting is often cheaper than owning month-to-month, that’s not always true long-term. Let’s compare the 5-year cost of renting a 2BR apartment vs. owning a comparable house, assuming 5% annual rent increases:

• Renting (5 Years): $1,800/month with 5% annual increases = $124,750 in total rent
• Owning (5 Years): $460,000 house with 10% down and 6% interest rate = $148,800 in mortgage payments + $24,000 in property taxes and insurance + $18,400 in maintenance and repairs = $191,200 in total costs – $55,200 in equity (assuming 2% annual appreciation) = $136,000 net cost

In this scenario, owning becomes more economical than renting after about 4 years. But this can vary significantly based on home price, interest rates, rent inflation, and how long you stay in the home. Generally, the longer you own, the better the return.

FAQs About Housing Costs in Nashville

How much more does a house cost than an apartment in Nashville?
On average, a 3BR house in Nashville costs about $1,155 more per month than a 2BR apartment when you factor in rent/mortgage, utilities, insurance, and maintenance.

Do houses always have higher utility bills than apartments?
In most cases, yes. Houses are larger and have more exposure to the elements, so they cost more to heat, cool, and power than apartments. The difference in Nashville is about $140/month on average.

Are apartments still cheaper than houses even with pet rent and parking fees?
Usually, but it depends on the apartment. If you have multiple pets and need reserved parking, the monthly premium for an apartment can exceed $200. But that’s still less than the extra costs that come with a house.

Making the Right Housing Choice in Nashville

As this cost comparison shows, apartments are generally cheaper than houses in Nashville—by about $1,155 per month on average. But the long-term cost savings of owning can make a house the better value if you plan to stay for 4+ years.

Lifestyle also plays a big role in the rent vs. buy decision. An apartment could be perfect if you prefer less upkeep and want to be close to city hotspots. But if you need more space or want to build equity, a house may be worth the higher monthly cost.

Ultimately, the right choice depends on your budget, goals, and housing priorities. For more info on budgeting for your Nashville rent or mortgage payment, check out our guide on monthly living costs in Music City.