Apartment vs. House in Lebanon: Which Costs More?

When deciding where to live in Lebanon, TN, one of the biggest factors is the cost difference between renting an apartment and owning a house. While renting offers flexibility and lower upfront costs, buying a house can be a smart long-term investment. According to recent data, 62% of new homebuyers in Lebanon choose single-family houses over apartments or condos. Let’s take a closer look at the monthly expenses and lifestyle considerations of apartments vs houses in Lebanon.

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

In general, renting an apartment in Lebanon tends to be more affordable on a monthly basis compared to owning a house. Renting a 2BR apartment typically costs around $1,200/month, while a 3BR house may have a mortgage payment of $1,800/month or more. The average rent for a 3BR house in Lebanon is $2,100/month.

However, these base costs don’t tell the full story. When renting, your monthly payment covers most expenses. But as a homeowner, you’ll need to budget for additional costs like property taxes, insurance, maintenance, and potentially HOA fees. Over time, owning can be more economical, especially considering Lebanon’s rising rents. The cost of renting a 3BR house has increased by 6% over the last year, with more affordable options found in the Southside neighborhood.

Table: Cost Comparison – Apartment vs House

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

Estimates are for mid-range units with typical usage.

Utility and Upkeep Differences

In addition to the base rent or mortgage, apartments and houses have notably different utility and maintenance costs. Some key differences in Lebanon:

• Water/sewer is often included in apartment rent but is an extra $50-75/month for houses.
• Cooling a larger house in the summer heat can add $100+ to monthly electric bills compared to an apartment.
• Lawn care and pest control can cost homeowners $50-100/month.
• Older houses may have higher heating costs in winter due to less efficient HVAC systems.

Apartments typically have lower utility costs overall since the spaces are smaller and more efficient. Shared walls mean less exposure to the elements. And renters don’t have to worry about maintenance and upkeep costs like homeowners do.

Lifestyle Tradeoffs

Of course, the decision between an apartment and a house involves more than just dollars and cents. There are key lifestyle factors to consider:

• Space: Houses offer more square footage and storage than apartments, making them ideal for families.
• Privacy: Houses provide more privacy, with no shared walls or upstairs neighbors.
• Yard: Houses usually include private outdoor space for gardening, pets, and play.
• Location: Apartments are often located in more walkable areas near dining and shopping.
• Parking: Houses typically include private driveway parking, while apartments may require street parking.
• Amenities: Many apartment complexes offer pools, gyms, and community spaces.

The best fit depends on your stage of life and priorities. Many young professionals in Lebanon choose apartments near downtown for the walkability and social perks. Families tend to prefer the extra space and yard that a house provides. And some retirees downsize from a house to an apartment to simplify their lifestyle.

Which Is Cheaper Long Term in Lebanon?

While renting an apartment is cheaper on a monthly basis, owning a house is often the better long-term investment. Let’s compare the 5-year cost of renting a 2BR apartment vs. buying a 3BR house, assuming 3% annual rent increases and 2% annual appreciation for the house:

• Renting (5 years): $1,200/month with 3% annual increases = $75,300 total rent paid
• Owning (5 years): $1,800/month mortgage + $500/month taxes, insurance, and maintenance = $138,000 total, but the house has appreciated in value to $225,000 (a net gain of $87,000)

Of course, this is a simplified example and individual circumstances will vary. Renting offers more flexibility if you may move in a few years. And owning requires good credit and a down payment. But in the long run, owning a home in a growing area like Lebanon can be a wise investment compared to renting.

FAQs About Housing Costs in Lebanon

How much more does a house cost per month compared to an apartment?
On average, houses in Lebanon cost about $1,000 more per month than apartments when you factor in the full cost of ownership. But a portion of that is building equity.

Do houses always have higher utility bills than apartments?
Yes, houses typically have higher utility costs for heating, cooling, water, and sewer. But newer, energy-efficient houses can help keep bills more manageable.

I have pets. Is it still cheaper to rent an apartment?
It depends. Many Lebanon apartments charge monthly pet rent of $25-50 per animal, which can add up over time. And they often have breed and size restrictions. Houses offer more flexibility for pet owners, but factor in the extra costs of a fenced yard and pet damages.

Making the Right Housing Choice in Lebanon

As you can see, the cost difference between renting an apartment and owning a house in Lebanon is significant, with houses costing $500-1,000 more per month on average. Renting is often the most affordable option for those on a tight budget or who may relocate within a few years.

However, if you plan to stay in Lebanon for 5+ years, buying a house can be a smart investment. And you can’t put a price tag on the extra space, privacy, and freedom that comes with homeownership. Weigh the lifestyle factors that matter most to you.

No matter which option you choose, make sure to create a monthly budget that accounts for the full cost of housing, including utilities, insurance, and maintenance. And don’t forget to factor in property taxes and HOA fees if you buy a house or condo.

The best choice depends on your unique needs and goals. But whether you rent or buy, Lebanon offers a variety of affordable, quality housing options to call home.