When Jenna and Mark started house hunting in Lebanon, they quickly realized their budget would be the deciding factor. “We love this area, but the numbers have to work out,” Jenna explained as they crunched the costs of renting versus buying. For many in Lebanon, the choice between an apartment or a house comes down to the monthly bottom line.
As a growing city 25 miles east of Nashville, Lebanon’s popularity means housing is in high demand. Young professionals appreciate the quick commute to the city, while families enjoy the strong schools and community feel. But with a median home price of $450,000, affordability is a real concern for buyers and renters alike.
The Housing Market in Lebanon Today
The local housing climate in Lebanon is competitive, with limited inventory and rising prices. New apartment complexes are popping up to meet the demand, especially near the Cumberland University campus. Many offer attractive amenities like swimming pools, fitness centers, and green spaces to lure in renters.
On the ownership side, single-family homes in established neighborhoods are highly sought after. However, rising interest rates have put pressure on affordability. Some buyers are opting for condos or townhomes instead, trading square footage for a lower price point. Others are moving further out from the city center to find better deals.
Overall, the Lebanon housing market favors sellers, with homes often receiving multiple offers. Renters may have more options as new apartments become available, but they should still expect to pay a premium for desirable locations and amenities.
Renting in Lebanon: What’s Typical?
For renters in Lebanon, the average monthly rent for a 1-bedroom apartment is around $1,350. Upgrading to a 2-bedroom unit will cost closer to $1,600 per month. These prices can vary widely depending on the apartment’s age, location, and amenities.
Young professionals tend to favor the newer complexes near Cumberland University or along Main Street. These walkable areas offer easy access to restaurants, shops, and entertainment. Families often look for rentals in the suburbs, where they can find more space and better school districts.
Rent prices in Lebanon have risen steadily over the past few years, outpacing wage growth. While some areas like the northern suburbs still offer relative affordability, renters should expect to budget a significant portion of their income towards housing. As a general rule, experts recommend spending no more than 30% of your gross income on rent.
Owning a Home in Lebanon
For those looking to buy in Lebanon, the median home price is currently $450,000. Assuming a 20% down payment and a 30-year mortgage at 6.5% interest, the typical monthly payment would be around $2,270. However, that’s just the start of the costs of homeownership.
Property taxes in Lebanon average 0.75% of the home’s assessed value, adding another $280 per month. Homeowners insurance runs about $150 monthly, while utility costs can vary widely depending on the home’s size and efficiency. Many neighborhoods also have mandatory Homeowners Association (HOA) fees, which cover shared amenities and maintenance. These can range from $50 to over $300 per month.
For a median-priced home in Lebanon, buyers should budget around $2,800 per month in total housing costs. That’s a significant jump from renting, but it comes with the benefits of building equity and potential tax deductions. Of course, these numbers can look very different depending on the specific property and the buyer’s financial situation.
Renters vs. Homeowners: Who Lives Where?
Lebanon’s homeownership rate is around 65%, slightly higher than the national average. That means about 2 out of every 3 households own their home, while the remaining third rent.
Younger residents, especially those under 35, are more likely to rent as they build their careers and save for a down payment. Apartments near the university or in the walkable downtown area are popular choices for this demographic. Some young families also choose to rent to avoid the upfront costs and maintenance responsibilities of homeownership.
For established families and older residents, owning a home is often the preferred choice. The stability and potential for long-term wealth building are strong motivators. However, rising home prices have made it harder for first-time buyers to enter the market. Some are turning to non-traditional options like rent-to-own or multi-generational living to make homeownership more attainable.
| Expense | Monthly Cost |
|---|---|
| Rent (1BR) | $1,350 |
| Rent (2BR) | $1,600 |
| Mortgage* | $2,270 |
| Property Tax* | $280 |
| Insurance* | $150 |
| Utilities | $200 |
| HOA Dues* | $150 |
| Total (Renting 1BR) | $1,550 |
| Total (Owning) | $2,800 |
*Homeownership costs based on median home price of $450,000. Actual costs will vary.
What’s Driving Costs Up or Down?
Several factors are influencing housing costs in Lebanon. On the demand side, the city’s proximity to Nashville and its highly rated schools make it an attractive place to live. More people moving in means more competition for limited housing stock, driving up prices.
The local job market is another key factor. Lebanon’s economy is growing, with major employers like Amazon and Rooms To Go setting up distribution centers. More jobs mean more people looking for housing, but it also means rising wages that can help offset higher costs.
On the supply side, Lebanon has seen a boom in apartment construction over the past few years. This has helped keep rent growth in check, even as home prices continue to rise. However, many of the new units are luxury apartments with high-end finishes and amenities, which can skew the average rent higher.
Zoning and land use policies also play a role in housing affordability. Lebanon has taken steps to encourage higher-density development, such as allowing accessory dwelling units (ADUs) on single-family lots. However, some neighborhoods have pushed back against these changes, citing concerns about traffic and school overcrowding.
FAQs About Housing in Lebanon
- Is Lebanon affordable to live in?
Compared to Nashville, Lebanon offers more affordable housing options. However, costs are rising quickly and many residents struggle with affordability, especially at lower income levels. - Why are housing prices changing?
A combination of high demand, limited supply, and a growing local economy are driving up housing costs in Lebanon. New construction has helped moderate rent growth, but home prices continue to climb. - How does Lebanon compare to nearby cities?
Lebanon is more affordable than Nashville but pricier than some smaller towns further out. It offers a good balance of proximity to the city and suburban amenities, which makes it attractive to many buyers and renters.
Making Smart Housing Decisions in Lebanon
For anyone considering a move to Lebanon, it’s important to weigh the costs and benefits of renting versus buying. Renting offers more flexibility and lower upfront costs, but homeownership can provide long-term stability and wealth building. Ultimately, the right choice depends on your financial situation, lifestyle preferences, and long-term goals.
Before making a decision, take the time to crunch the numbers and create a realistic budget. Factor in not just the monthly rent or mortgage payment, but also utilities, insurance, maintenance costs, and any HOA or amenity fees. Don’t forget to account for one-time expenses like moving costs, security deposits, or down payments.
It’s also a good idea to explore different neighborhoods and housing types to find the best fit for your needs. Consider factors like commute times, school districts, walkability, and access to amenities. Working with a local real estate agent or apartment locator can help you navigate the market and find hidden gems.
Whether you choose to rent or buy, living in Lebanon can be a great choice for those seeking a balance of affordability, community, and convenience. By doing your research and making smart financial decisions, you can find a place to call home in this growing Middle Tennessee city.