The Housing Market in Franklin Today
Franklin, Tennessee is a rapidly growing suburb located just south of Nashville. The city’s charming downtown, excellent schools, and proximity to major employers have made it an increasingly popular place to live in recent years. However, this surge in demand has put pressure on the local housing market, leading to rising costs for both renters and buyers.
Over the past decade, Franklin has seen a boom in new housing developments, particularly in the downtown area and along the I-65 corridor. Despite this increase in supply, inventory remains tight as more people move to the area for jobs and quality of life. The result is a competitive market where homes sell quickly and prices continue to climb year-over-year.
According to local real estate agents, the most sought-after properties in Franklin are single-family homes in established neighborhoods with good schools. However, there is also growing demand for low-maintenance options like condos and townhomes, especially among young professionals and empty nesters. Many new apartment complexes are being built to cater to these demographics, offering amenities like fitness centers, pools, and green spaces.
Renting in Franklin: What’s Typical?
For renters, the cost of living in an apartment in Franklin can vary widely depending on location, size, and amenities. As of 2023, the average rent for a one-bedroom apartment in Franklin is around $1,500 per month, while a two-bedroom typically goes for $1,800 or more. However, prices can be significantly higher in newer buildings or desirable areas like downtown.
Some of the most popular neighborhoods for renters in Franklin include Cool Springs, Fieldstone Farms, and McKay’s Mill. These areas offer a mix of apartments, townhomes, and single-family rentals, with easy access to shopping, dining, and major employers. Rent tends to be more affordable further from the city center, but still above average compared to other parts of Tennessee.
In terms of demographics, Franklin’s rental market skews younger and more affluent than the national average. Many residents are in their 20s and 30s, working in professional fields like healthcare, finance, and technology. The city also attracts a growing number of empty nesters and retirees looking for maintenance-free living options.
Typical Monthly Rental Costs in Franklin
| Expense | Average Cost |
|---|---|
| Rent (1BR) | $1,500 |
| Rent (2BR) | $1,800 |
| Renters Insurance | $20 |
| Electricity | $120 |
| Water/Sewer | $50 |
| Internet | $60 |
| Total | $1,750 – $2,050 |
Owning a Home in Franklin
For those looking to buy a home in Franklin, the median sale price as of 2023 is around $650,000. At this price point, buyers can expect a monthly mortgage payment of roughly $2,900, assuming a 20% down payment and a 30-year fixed rate loan at 6.5% APR. However, actual costs will vary based on the specific property and financing terms.
In addition to the mortgage, homeowners in Franklin must budget for property taxes, insurance, and HOA dues. The average property tax rate in Williamson County is 2.15%, which translates to about $1,160 per month on a median-priced home. Homeowners insurance typically runs $100-200 per month, while HOA fees can range from $50-500 depending on the community and amenities.
For a more detailed look at monthly homeownership costs in Franklin, here’s a sample breakdown:
| Expense | Average Cost |
|---|---|
| Mortgage (Median Home Price) | $2,900 |
| Property Tax | $1,160 |
| Homeowners Insurance | $150 |
| HOA Dues | $200 |
| Utilities | $250 |
| Maintenance/Repairs | $300 |
| Total | $4,960 |
As these numbers show, the cost of owning a home in Franklin is significantly higher than renting on a monthly basis. However, many residents still prefer ownership for the long-term financial benefits and stability it provides.
Renters vs. Homeowners: Who Lives Where?
According to the most recent Census data, Franklin’s homeownership rate is around 68%, which is higher than the national average of 64%. This means that roughly two-thirds of households in the city own their homes, while one-third rent.
In general, homeownership is more common among older, higher-income residents who have built up savings and established careers. Many families choose to buy homes in Franklin for the strong school system and suburban lifestyle. The city’s most expensive neighborhoods, such as Westhaven and Laurelbrooke, are dominated by owner-occupied single-family homes.
Renting, on the other hand, is more prevalent among younger singles and couples who may not have the savings or credit to buy a home. The flexibility of renting also appeals to those who are new to the area or unsure about their long-term plans. As mentioned earlier, popular rental areas include Cool Springs and the neighborhoods along I-65.
What’s Driving Costs Up or Down?
Like many desirable suburbs across the country, Franklin’s housing market is primarily driven by supply and demand. The city’s strong job market, highly-rated schools, and overall quality of life have made it a magnet for growth in recent years. However, the pace of new construction has not kept up with the influx of residents, leading to a shortage of homes for sale and rising prices.
Another factor contributing to Franklin’s high housing costs is the city’s strict zoning and development regulations. Much of the land in Franklin is zoned for large-lot single-family homes, with limited areas designated for higher-density housing like apartments and townhomes. This has constrained the supply of more affordable options and pushed prices upward.
On the flip side, there are some signs that Franklin’s housing market may be cooling off slightly in 2023. Rising mortgage rates and economic uncertainty have led to a slowdown in sales activity, with homes staying on the market longer and price growth moderating. However, demand is expected to remain strong in the long run given Franklin’s attractive fundamentals.
FAQs About Housing in Franklin
- Is Franklin affordable to live in?
While Franklin’s housing costs are high compared to other parts of Tennessee, many residents feel that the city’s amenities, schools, and job opportunities make it worth the premium. However, affordability is a growing concern, particularly for renters and first-time homebuyers. - Why are housing prices changing?
Franklin’s housing prices have risen steadily over the past decade due to strong demand and limited supply. The city’s population and job growth have outpaced new construction, leading to competition for available homes. Economic factors like interest rates and consumer confidence also play a role in price fluctuations. - How does Franklin compare to nearby cities?
Franklin’s housing costs are among the highest in the Nashville metro area, along with neighboring cities like Brentwood and Nolensville. However, Franklin offers a unique blend of historic charm, modern amenities, and convenient location that many residents feel justifies the higher prices. More affordable options can be found further out in places like Spring Hill and Thompson’s Station.
Making Smart Housing Decisions in Franklin
For those considering a move to Franklin, it’s important to weigh the costs and benefits of renting vs. buying based on your individual circumstances. Renting may be the better choice if you value flexibility, want to get to know the area before committing, or don’t have the savings for a down payment. Buying, on the other hand, can provide long-term stability, tax benefits, and the opportunity to build equity.
Regardless of whether you rent or buy, it’s crucial to have a clear understanding of your budget and what you can afford. In addition to average monthly expenses like housing, food, and transportation, be sure to factor in one-time costs like moving expenses and furniture. It’s also a good idea to have an emergency fund to cover unexpected repairs or income disruptions.
Finally, don’t hesitate to seek out professional advice when making housing decisions in Franklin. A qualified real estate agent can help you navigate the local market and find properties that fit your needs and budget. For a more comprehensive look at the cost of living in Franklin, including factors like groceries, utilities, and taxes, be sure to check out our other resources on the topic.
By doing your research and planning ahead, you can make informed choices about housing in Franklin and find a place to call home in this thriving Tennessee community.