Housing Costs in Nashville by Type

The Housing Market in Nashville Today

The cost of living in an apartment vs house in Nashville is a key consideration for anyone looking to move to or within the city. As of 2025, the Nashville housing market remains competitive, with steady demand and rising prices in many areas. Inventory has tightened in recent years, especially for entry-level homes, leading to bidding wars and quick sales. At the same time, new housing developments are rising downtown and in nearby neighborhoods, offering modern amenities at higher price points.

One unique characteristic of the Nashville market is the growing popularity of green living. An increasing number of apartments and condos are offering features like rooftop gardens, electric vehicle charging stations, and energy-efficient appliances. While these eco-friendly options often come with a premium, they appeal to environmentally conscious renters and buyers.

Despite the challenges of affordability, Nashville continues to attract new residents with its vibrant culture, thriving job market, and relatively low cost of living compared to other major cities. Understanding the nuances of housing costs is essential for anyone navigating the local market.

Renting in Nashville: What’s Typical?

For renters in Nashville, prices vary widely depending on location, size, and amenities. As of 2025, the average monthly rent for a one-bedroom apartment in the city is around $1,800, while a two-bedroom typically goes for $2,200 or more. However, bargains can still be found in up-and-coming areas like Wedgewood-Houston and Bordeaux, where rents are often 10-20% lower than the city average.

Young professionals and creatives tend to gravitate towards neighborhoods like East Nashville, Germantown, and The Gulch, where walkability and nightlife are major draws. Families and those seeking more space for their dollar often look to suburban areas like Brentwood, Franklin, and Hendersonville. While rent in Nashville has risen by around 5% per year recently, these outlying areas still offer relatively affordable options for renters.

One factor driving rent prices is the influx of new residents, many of whom are attracted by Nashville’s growing tech and healthcare industries. With the city’s population projected to continue rising, experts predict that competition for rentals will remain strong in the coming years, putting upward pressure on prices.

Owning a Home in Nashville

For those looking to buy a home in Nashville, the median price currently sits at around $450,000 — a significant increase from just a few years ago. At this price point, buyers can expect a monthly mortgage payment of roughly $2,450, assuming a 30-year fixed loan with 20% down and a 4% interest rate.

On top of the mortgage, Nashville homeowners must budget for property taxes, which average 0.75% of the home’s assessed value per year. Homeowners insurance adds another $100-200 per month, while utility costs are generally lower than the national average due to the city’s temperate climate. For those living in communities with homeowners associations (HOAs), monthly dues can range from $100 for basic maintenance to over $1,000 for luxury amenities.

While these housing costs can be daunting, owning a home in Nashville has proven to be a solid investment over the long term. The city’s strong job growth and quality of life have fueled steady appreciation, with home values rising by an average of 6-8% annually in recent years.

Renters vs. Homeowners: Who Lives Where?

Nashville’s homeownership rate currently stands at around 54%, slightly below the national average. While renting is common among younger residents and newcomers to the city, a significant portion of the population has put down roots through homeownership.

In trendy areas like 12 South and Hillsboro Village, renters often outnumber owners, with a mix of young singles, couples, and roommates sharing houses and apartments. Families and established professionals are more likely to own homes in quieter, residential neighborhoods like Green Hills, Sylvan Park, and Belle Meade.

One barrier to homeownership in Nashville is the high cost of entry. With prices rising faster than wages, many first-time buyers struggle to save for a down payment or qualify for a mortgage. This has led to a growing disparity between those who can afford to own and those who are priced out of the market. However, programs like down payment assistance and low-interest loans are helping some buyers overcome these hurdles.

Estimates reflect mid-range properties and average usage.

What’s Driving Costs Up or Down?

Several factors are influencing the cost of living in an apartment vs house in Nashville. On the supply side, zoning restrictions and high land costs have limited the construction of new housing, especially at lower price points. This has led to a shortage of affordable options, driving up rents and prices across the board.

At the same time, demand for housing in Nashville remains strong, fueled by the city’s growing population and robust job market. Major employers like Amazon, AllianceBernstein, and Oracle have recently expanded their presence in the city, bringing thousands of new workers and putting pressure on the housing supply.

One trend that could help alleviate some of this pressure is the rise of “missing middle” housing — duplexes, townhomes, and other small-scale multifamily buildings. These options provide density without drastically changing the character of existing neighborhoods. The city has also taken steps to encourage affordable housing development through incentives and public-private partnerships.

FAQs About Housing in Nashville

• Is Nashville affordable to live in?
  While Nashville is more expensive than some smaller cities, it remains relatively affordable compared to major coastal metros. Housing costs are the biggest factor in the city’s cost of living.
• Why are housing prices changing?
  Housing prices in Nashville are rising due to a combination of population growth, job market strength, and limited supply. Construction has not kept pace with demand in recent years.
• How does Nashville compare to nearby cities?
  Nashville is generally more expensive than smaller cities like Chattanooga and Knoxville, but offers a lower cost of living than Atlanta or major cities in the Northeast and West Coast. Housing costs are the most significant difference.

Making Smart Housing Decisions in Nashville

Whether renting or buying, housing is likely to be the biggest expense for most Nashville residents. Understanding the factors that drive housing costs is key to making informed decisions and achieving long-term financial goals.

For renters, budgeting carefully and exploring up-and-coming neighborhoods can help keep costs manageable. Tools like our Monthly Budget Examples for Nashville Residents can provide a helpful starting point. Buyers, meanwhile, should be prepared for competition and may need to be flexible on location or amenities to find a home that fits their budget.

No matter your housing situation, it’s important to keep the big picture in mind. While the cost of living in an apartment vs house in Nashville is certainly a major consideration, it’s just one piece of the puzzle. Factors like job opportunities, quality of life, and long-term financial goals should all play a role in your decision-making process. By weighing these factors carefully and staying informed about market trends, you can navigate Nashville’s housing landscape with confidence. For more insights and tips, check out our comprehensive Cost of Living in Nashville (2025 Guide).