What Housing Really Costs in Murfreesboro

The Housing Market in Murfreesboro Today

Is it cheaper to rent or buy right now in Murfreesboro, TN? The local housing market has seen some shifts in recent years, with inventory tightening as more people move to the area for jobs and quality of life. New apartment complexes and housing developments are rising to meet the growing demand, especially in and around the downtown core.

In Murfreesboro, an increasing number of apartments are offering more green spaces and community amenities to attract renters. At the same time, many homes are being renovated or rebuilt to appeal to buyers looking for modern updates in established neighborhoods. The result is a diverse mix of housing options at various price points.

While housing costs have risen overall, Murfreesboro remains relatively affordable compared to the national average. The city’s strong job market, particularly in healthcare and education, helps support a stable housing market. However, as more people discover the appeal of living in Murfreesboro, competition for available units may put upward pressure on prices.

Renting in Murfreesboro: What’s Typical?

For renters in Murfreesboro, the average monthly rent for a 1-bedroom apartment is around $1,100, while a 2-bedroom typically goes for about $1,300. These prices can vary depending on the location, age, and amenities of the complex. Newer luxury apartments in high-demand areas like downtown may command higher rents.

Young professionals and students are a significant part of the renter demographic in Murfreesboro, drawn by the city’s growing job opportunities and proximity to Middle Tennessee State University. Many apartment complexes cater to this group with modern finishes, fitness centers, and social spaces. Rent in Murfreesboro has risen by about 5% in the last year, but areas further from the city center still offer more affordable options.

Renters in Murfreesboro also need to factor in the cost of utilities, which can add $100-200 per month depending on usage. Some newer apartment complexes include trash and internet service in the monthly rent. Parking is usually free in suburban areas but may come with an additional fee for garage or reserved spaces in denser parts of town.

Owning a Home in Murfreesboro

For those looking to buy a home, the median sale price in Murfreesboro is around $325,000 as of 2023. With a 10% down payment and a 30-year fixed mortgage at 6.5% interest, that translates to a monthly payment of about $1,850 before taxes and insurance. However, actual costs will depend on the specific property, down payment, and loan terms.

In addition to the mortgage, homeowners in Murfreesboro need to budget for property taxes, which average 0.75% of the assessed value annually. Homeowners insurance adds another $100-200 per month, while utility costs are similar to renters. Some neighborhoods also have mandatory Homeowners Association (HOA) dues, typically $200-400 per month, to cover shared amenities and exterior maintenance.

While these costs can add up, many see homeownership as a worthwhile investment and a way to build long-term wealth. Plus, owning a home offers more stability and freedom to customize the space. With a variety of neighborhoods and architectural styles available, from historic bungalows to new construction, Murfreesboro offers options for a range of budgets and preferences.

Renters vs. Homeowners: Who Lives Where?

In Murfreesboro, about 60% of residents own their homes, while 40% rent. The homeownership rate is higher among older residents, particularly those over 65, who are more likely to have the savings and credit to qualify for a mortgage. Families with children also tend to prioritize homeownership for the space and stability it provides.

Younger individuals, including students and early-career professionals, are more likely to rent, often in apartment complexes or shared houses. Renting offers more flexibility and requires less upfront investment, which appeals to those still establishing their careers or unsure about long-term plans. Some retirees also choose to rent to avoid the maintenance responsibilities of homeownership.

While renting is common among younger individuals, a large portion of older residents own homes. However, financial barriers like saving for a down payment and qualifying for a mortgage can make homeownership challenging for some. Cultural factors and family traditions also play a role in housing choices. As Murfreesboro continues to grow and diversify, the mix of renters and homeowners may shift.

Typical Monthly Housing Costs in Murfreesboro

Here’s what housing costs might look like each month in Murfreesboro:

Estimates reflect mid-range properties and average usage.

What’s Driving Costs Up or Down?

Several factors influence the cost of housing in Murfreesboro. On the demand side, the strong local job market and influx of new residents are putting upward pressure on prices, particularly in desirable neighborhoods. The presence of Middle Tennessee State University also creates consistent demand for rental units.

On the supply side, zoning regulations and construction costs can constrain the development of new housing. While Murfreesboro has seen a boom in apartment construction, the pace of new single-family homes has been slower to meet demand. This imbalance can drive up prices and rents, especially for larger units.

Policy decisions at the local and state level also play a role. Property tax rates, development incentives, and affordable housing initiatives can all shape the housing market. In cities like Murfreesboro, the local job market is influencing the cost of housing by pushing prices up in key areas. As the city continues to grow and attract new residents, finding the right balance of housing types and price points will be an ongoing challenge.

FAQs About Housing in Murfreesboro

• Is Murfreesboro affordable to live in? Compared to the national average, Murfreesboro is a relatively affordable place to live. However, housing costs have been rising in recent years, particularly for newer apartments and homes in high-demand areas.
• Why are housing prices changing? A growing population, strong job market, and limited supply of new housing are all contributing to rising costs. Zoning regulations and construction costs can also make it challenging to build more affordable units.
• How does Murfreesboro compare to nearby cities? Murfreesboro is generally more affordable than Nashville, but prices are higher than in some smaller towns in the region. The city offers a balance of amenities, job opportunities, and housing options that appeal to a range of residents.

Making Smart Housing Decisions in Murfreesboro

Whether you’re renting or buying, housing is likely to be your biggest monthly expense in Murfreesboro. To make the best decision for your budget and lifestyle, consider factors like location, unit size, and amenities. Compare the total monthly costs of renting versus owning, including utilities, insurance, and maintenance.

Keep in mind that while owning a home can build long-term wealth, it also comes with additional costs and responsibilities. Renting offers more flexibility and predictable expenses, but you won’t build equity. Ultimately, the right choice depends on your financial situation, life stage, and personal preferences.

For more information on budgeting for housing and other expenses in Murfreesboro, check out our guides on Average Monthly Expenses and the Overall Cost of Living. With careful planning and smart choices, you can find a comfortable and affordable place to call home in this growing Tennessee city.