Tennessee Cost Of Living: A Detailed 2024 Guide

Are you considering a move to the Volunteer State? Understanding the cost of living in Tennessee is crucial for making an informed decision. In our analysis, Tennessee consistently ranks among the more affordable states in the U.S., but the specifics vary significantly depending on the city and lifestyle you choose. This guide provides a comprehensive overview of Tennessee's cost of living in 2024, covering everything from housing and utilities to transportation and healthcare.

1. Housing Costs in Tennessee

Housing is typically the most significant expense for most households. In Tennessee, housing costs are generally lower than the national average. However, the specific cost can vary widely depending on the location. For example, Nashville and Franklin, popular urban areas, have seen housing costs rise in recent years, while smaller towns and rural areas offer more affordable options.

Average Home Prices

According to data from Zillow, the median home value in Tennessee is around $300,000 as of late 2023. However, this number can fluctuate significantly based on location:

• Nashville: The median home value in Nashville is closer to $450,000.
• Memphis: In Memphis, the median home value is approximately $200,000.
• Knoxville: Expect to see median home values around $320,000 in Knoxville.
• Chattanooga: Median home values in Chattanooga hover around $280,000.

Rental Costs

If you're not ready to buy, renting is another viable option. Rental costs in Tennessee are also generally lower than the national average. According to Apartments.com, the average rent for a one-bedroom apartment in Tennessee is around $1,100 per month. Here’s a breakdown by city:

• Nashville: Average rent for a one-bedroom apartment is about $1,600 per month.
• Memphis: You can find one-bedroom apartments for around $900 per month.
• Knoxville: Rent for a one-bedroom apartment averages around $1,200 per month.
• Chattanooga: Expect to pay around $1,100 per month for a one-bedroom apartment.

Property Taxes and Homeowners Insurance

Don't forget to factor in property taxes and homeowners insurance. Tennessee has relatively low property taxes compared to other states, with an average effective property tax rate of around 0.7%. Homeowners insurance costs also vary but typically range from $1,000 to $1,500 per year.

2. Utility Costs

Utility costs, including electricity, natural gas, water, and internet, are another essential factor in the cost of living. Tennessee's utility costs are slightly lower than the national average, thanks in part to the state's favorable climate and diverse energy sources.

Electricity

The average monthly electricity bill in Tennessee is around $130, according to the U.S. Energy Information Administration (EIA). This can vary based on your usage, the size of your home, and the efficiency of your appliances.

Natural Gas

If your home uses natural gas for heating or cooking, expect to pay around $80 to $120 per month, depending on the season. Natural gas prices can fluctuate, so it's wise to monitor these costs.

Water and Sewer

Water and sewer bills typically range from $50 to $100 per month, depending on your water usage and location.

Internet

High-speed internet is almost a necessity in today’s world. In Tennessee, internet service can cost anywhere from $50 to $100 per month, depending on the provider and the speed of the service.

3. Transportation Costs

Transportation costs include expenses like vehicle payments, insurance, gas, and maintenance, as well as public transportation fares. In Tennessee, transportation costs are generally on par with the national average, but they can be managed by choosing the right location and transportation methods.

Vehicle Ownership

The average cost of owning a vehicle in Tennessee, including payments, insurance, gas, and maintenance, can range from $500 to $800 per month. This will vary depending on the type of vehicle you own and how much you drive.

Gas Prices

Gas prices in Tennessee are typically lower than the national average. As of late 2023, the average gas price in Tennessee is around $3.00 per gallon, but this can fluctuate with market conditions.

Public Transportation

Public transportation options are available in larger cities like Nashville, Memphis, Knoxville, and Chattanooga. Fares vary, but a monthly pass typically costs between $60 and $80. However, public transportation may not be as extensive as in some other major cities, so many residents still rely on personal vehicles.

4. Food Costs

Food costs are another significant part of the cost of living. In Tennessee, food costs are generally lower than the national average. This includes both groceries and dining out.

Groceries

According to data from the Bureau of Labor Statistics (BLS), the average single adult in Tennessee spends around $300 to $400 per month on groceries. This can vary based on your dietary habits and where you shop.

Dining Out

Dining out in Tennessee is also relatively affordable. A meal at a mid-range restaurant can cost around $15 to $25 per person. Of course, prices can be higher at upscale establishments.

5. Healthcare Costs

Healthcare costs are a critical consideration for any household budget. In Tennessee, healthcare costs are slightly lower than the national average. However, these costs can vary widely depending on your insurance coverage and healthcare needs. — Cranberry Township, PA Zip Code: Find It Here!

Health Insurance

The average monthly health insurance premium in Tennessee is around $400 to $600 per person, according to the Kaiser Family Foundation. This can vary based on the type of plan you choose and your employer's contribution.

Medical Expenses

Out-of-pocket medical expenses, including doctor visits, prescriptions, and other healthcare services, can add up. It’s essential to factor these costs into your budget. A visit to a general practitioner can cost around $100 to $150, while specialist visits may be higher.

6. Childcare Costs

For families with children, childcare costs can be a significant expense. In Tennessee, childcare costs are generally lower than the national average, but they can still strain a budget.

Daycare

The average cost of daycare in Tennessee ranges from $800 to $1,200 per month per child, depending on the age of the child and the type of care. Infant care is typically the most expensive.

After-School Care

After-school care programs can cost around $200 to $400 per month per child. These programs provide supervision and activities for children after school hours. — Arizona Football: Latest Depth Chart & Analysis

7. Taxes

Taxes play a significant role in the overall cost of living. Tennessee has a relatively low tax burden compared to other states. The state has no state income tax, which can be a major draw for many people.

Sales Tax

Tennessee has a state sales tax rate of 7%, and local governments can add their own sales taxes, resulting in combined rates that can range from 9.5% to 9.75%. This is something to keep in mind when making purchases.

Property Taxes

As mentioned earlier, property taxes in Tennessee are relatively low, with an average effective property tax rate of around 0.7%. This is lower than the national average, making homeownership more affordable.

8. Miscellaneous Expenses

There are other miscellaneous expenses to consider, such as entertainment, personal care, and clothing. These costs can vary widely based on your lifestyle and spending habits. — Hourly Weather In Winston-Salem, NC

Entertainment

Tennessee offers a variety of entertainment options, from live music and cultural events to outdoor activities. The cost of entertainment can range from a few dollars for a movie ticket to hundreds of dollars for a concert or event.

Personal Care

Personal care expenses, such as haircuts, salon services, and personal hygiene products, can add up. Budgeting for these expenses is essential.

Clothing

Clothing costs vary depending on your shopping habits and preferences. On average, individuals in Tennessee spend around $100 to $200 per month on clothing.

9. Cost of Living by City in Tennessee

The cost of living in Tennessee varies significantly by city. Here’s a comparison of some of the major cities:

• Nashville: Nashville is the most expensive city in Tennessee. The cost of living is higher than the national average, particularly for housing.
• Memphis: Memphis is one of the most affordable cities in Tennessee. The cost of living is significantly lower than the national average, especially for housing.
• Knoxville: Knoxville offers a balance between affordability and amenities. The cost of living is slightly lower than the national average.
• Chattanooga: Chattanooga is another affordable city in Tennessee. The cost of living is lower than the national average, and it offers a high quality of life.

10. Tips for Saving Money in Tennessee

If you’re looking to save money while living in Tennessee, here are a few tips:

• Choose an affordable location: Consider living in smaller towns or rural areas where housing costs are lower.
• Cook at home: Eating out can be expensive. Cooking meals at home can save you a significant amount of money.
• Take advantage of free activities: Tennessee offers many free activities, such as hiking, visiting parks, and attending free events.
• Shop around for insurance: Compare quotes from different insurance providers to find the best rates.
• Use public transportation: If available in your area, using public transportation can save you money on gas and vehicle maintenance.

FAQ Section

What is the average cost of living in Tennessee?

The average cost of living in Tennessee is lower than the national average. However, it varies by city. Expect monthly expenses to range from $1,500 to $3,000 per person, excluding rent or mortgage.

Is Nashville expensive to live in?

Yes, Nashville is the most expensive city in Tennessee. Housing costs are particularly high, but other expenses are also above the state average.

How much does it cost to rent an apartment in Tennessee?

The average rent for a one-bedroom apartment in Tennessee is around $1,100 per month, but this can range from $900 in Memphis to $1,600 in Nashville.

What are the average utility costs in Tennessee?

Average monthly utility costs in Tennessee are around $250 to $350, including electricity, natural gas, water, and internet.

Does Tennessee have state income tax?

No, Tennessee does not have a state income tax, which can make it an attractive place to live for those looking to lower their tax burden.

What is the sales tax rate in Tennessee?

The state sales tax rate in Tennessee is 7%, but local governments can add their own sales taxes, resulting in combined rates that can range from 9.5% to 9.75%.

How does Tennessee’s cost of living compare to other states?

Tennessee generally has a lower cost of living than many other states in the U.S., particularly compared to states on the East and West Coasts.

Conclusion

The cost of living in Tennessee is generally more affordable than the national average, making it an attractive option for many people. While Nashville is more expensive, other cities like Memphis, Knoxville, and Chattanooga offer more budget-friendly options. Understanding the costs associated with housing, utilities, transportation, food, healthcare, and childcare will help you make an informed decision about moving to Tennessee. If you're considering a move, research specific cities and neighborhoods to find the best fit for your budget and lifestyle.

Ready to make your move to Tennessee? Start by exploring the best neighborhoods and comparing your current expenses with our detailed cost breakdown to ensure a smooth transition.