Cost Comparison: Living in a House vs Apartment in Gallatin

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

When deciding between an apartment or house in Gallatin, TN, the first factor most people consider is the difference in monthly housing costs. On average, renting a 2-bedroom apartment in Gallatin typically costs around $1,350 per month, while a 3-bedroom house may have a monthly rent closer to $1,950. The median rent for a 3-bedroom house in Gallatin is $1,875 per month.

However, these figures can vary significantly based on factors like location, age of the property, and included amenities. For example, newer apartment complexes near the vibrant downtown area may command higher rents, while more affordable options can often be found in neighborhoods like Clearview or Shepherd Hills. The cost of renting a 3-bedroom house in Gallatin has increased by roughly 6% over the last year, with the most budget-friendly homes concentrated in areas further from the city center.

For those considering homeownership, the median home value in Gallatin is around $415,000 as of 2023. Assuming a 30-year fixed mortgage at 6.5% interest with a 20% down payment, the monthly mortgage payment would be approximately $2,100 (not including property taxes, insurance, or HOA fees). It’s important to factor in these additional costs when comparing the long-term expense of renting vs. owning.

Table: Cost Comparison – Apartment vs House

Here’s a side-by-side breakdown of common monthly costs in Gallatin:

*Mortgage estimate based on median home value with 20% down. Estimates are for mid-range units with typical usage.

Utility and Upkeep Differences

In addition to the base rent or mortgage payment, it’s crucial to consider how utility costs differ between apartments and houses. Some key factors that impact monthly bills include:

• Square footage: Houses are typically larger than apartments, which means more space to heat, cool, and light—leading to higher electricity and gas bills.
• Outdoor maintenance: Homeowners are responsible for lawn care, landscaping, and exterior upkeep, while these costs are usually included in apartment living. Expect to spend $100+ per month on yard maintenance alone for a house in Gallatin.
• Age and efficiency: Newer apartments often have more efficient appliances and better insulation compared to older houses, which can result in lower utility bills. However, recently constructed houses may rival apartments in energy efficiency.
• Amenities: Some Gallatin apartment complexes include utilities like water, trash, and sometimes even internet in the monthly rent. This is rare for single-family homes, where the homeowner typically pays for all utilities separately.

On average, expect to spend about $150 per month on utilities for a 2-bedroom apartment in Gallatin, compared to around $250 monthly for a 3-bedroom house. Keep in mind that these are just estimates—your actual costs will depend on factors like your usage habits, the age and condition of the property, and your provider rates.

Lifestyle Tradeoffs

Of course, the decision between an apartment or house involves much more than just dollars and cents. There are significant lifestyle differences to consider, such as:

• Space and privacy: Houses typically offer more square footage, both indoors and out, as well as greater privacy from neighbors. This can be especially appealing for families with children or pets.
• Location and walkability: Apartments are often located closer to downtown areas and commercial districts, which can mean better walkability and shorter commutes. However, some may prefer the quiet of a residential neighborhood farther from the city bustle.
• Parking and storage: Houses usually come with private garages and ample storage space, while apartments may have shared parking lots and limited closet room.
• Flexibility and maintenance: Renting an apartment offers greater flexibility to move when your lease is up, and the landlord handles most repairs and upkeep. Homeownership ties you to a property longer-term and makes you responsible for all maintenance.

Ultimately, the right choice depends on your unique priorities and lifestyle needs. Many young professionals in Gallatin choose apartments near the town center for the walkable amenities and low-maintenance living. Growing families, on the other hand, often prefer the extra space and yard that a house provides, even if it means a slightly longer commute.

Which Is Cheaper Long Term in Gallatin?

While renting an apartment is typically cheaper than buying a house on a monthly basis, owning a home has the potential to be more economical in the long run. Let’s compare the total costs over a 5-year period, assuming a 2% annual increase in rent and a 1% annual increase in home maintenance costs:

• Renting a 2BR apartment: $1,580/month in year 1 equals $18,960/year. After 5 years of 2% rent increases, the total cost would be roughly $98,500.
• Owning a 3BR house: $2,725/month in year 1 equals $32,700/year, or $163,500 over 5 years (not including the down payment). However, $63,000 of that is going toward the principal on your mortgage—building equity in an appreciating asset.

So while you would spend about $65,000 more on housing costs as a homeowner over that 5-year period, you would also gain around $63,000 in home equity and likely benefit from rising property values over time. In a city like Gallatin where home prices and rents have steadily increased, buying a house can be a smart long-term financial move if you plan to stay put for a while.

FAQs About Housing Costs in Gallatin

How much more does a house cost per month compared to an apartment in Gallatin?
On average, a 3-bedroom house in Gallatin costs about $1,145 more per month than a 2-bedroom apartment when you factor in rent/mortgage, utilities, maintenance, and other housing expenses. However, this can vary widely depending on the specific properties and neighborhoods you’re comparing.

Do houses always have higher utility bills than apartments?
While houses in Gallatin typically have higher utility costs than apartments due to their larger size and additional maintenance needs, this isn’t always the case. Newer, energy-efficient houses may have lower bills than older, poorly insulated apartments. It’s best to ask the landlord or seller for an estimate of typical monthly utility costs for that specific property.

Is renting an apartment still cheaper than buying a house even with pet fees and parking costs?
In most cases, yes. Even with additional costs like pet rent ($25-$50/month) and parking fees ($50-$100/month), renting an apartment in Gallatin is usually cheaper on a monthly basis than owning a house. However, homeownership can be more cost-effective in the long term as you build equity and benefit from potential appreciation.

Making the Right Housing Choice in Gallatin

As you can see, the cost difference between renting an apartment and owning a house in Gallatin is significant—around $1,145 per month on average. However, the right choice for you depends on more than just the monthly financials. It’s important to consider your lifestyle priorities, long-term goals, and how long you plan to stay in the area.

If you value flexibility and convenience, renting an apartment may be the better choice, especially if you’re not sure how long you’ll be in Gallatin. But if you’re ready to put down roots and start building long-term wealth, buying a house can be a smart financial move—even with the higher upfront costs.

Whichever path you choose, be sure to factor housing costs into your overall budget and financial plans. Check out our guide to sample monthly budgets for Gallatin in 2023 to get a better sense of how your rent or mortgage payment might fit into your larger financial picture. And if you’re leaning towards homeownership, read up on property taxes and HOA fees in Gallatin so you understand the full cost of owning a home.

Armed with this knowledge, you can make a confident, informed decision about whether an apartment or house is right for you in Gallatin. Happy house hunting!