Are you looking to move to Tennessee and want to learn the cost of living you can expect here? Or are you moving out of the state for lower rent prices and utility costs since you cannot afford the cost of living in Tennessee?
If so, you have come to the right place to learn about housing costs and the real estate market in Tennessee. Here, you will discover information about living expenses, utility costs, healthcare costs, property taxes, and more. Want to hear about the exact prices? Then keep reading!
Real Estate Market in Tennessee
The median home price for a residential single-family house is $498,785 in Tennessee as of June 2022. The median cost of a condominium in Tennessee is $340,506 as of June 2022.
The home value of real estate property in Tennessee has grown tremendously over the last year. Expensive home sales in TN have become more common over the past year. Residential single-family homes have jumped by median values of more than $98,000. Condo prices have increased by more than $60,000 throughout the last year.
The number of available real estate properties has also grown by around 1,500 from May 2021 to May 2022. Due to the increase in property prices, the average rent has also grown. As a result, renters in major cities in Tennessee have more trouble with housing.
Unfortunately, this also means that there are not as many home buyers who can afford a house in Tennessee cities due to the seller’s real estate market and these skyrocketing housing costs.
Costs of Living in Tennessee
You can use the cost of living calculator to find out how much you are likely to spend if you were to live in Memphis, Nashville, or another city in the state of Tennessee. Surprisingly, the cost of living is relatively low in Tennessee despite the rising housing costs.
Tennessee has the 8th lowest overall cost of living in the country and is 10.3 percent lower than the U.S. average. Generally, the type of costs that are lower than the prices in the rest of the country include:
- Food and groceries
- Healthcare fees
- Housing prices
You will also find that certain other prices are lower in the state, such as childcare costs, entertainment, and clothing. The Tennessee cost of living is relatively low compared to other states like New York, California, or Massachusetts.
If the United States average living costs get ranked at 100, Tennessee’s cost of living gets ranked at 87.6.
Bills and Utility Costs
The cost of living index will show that your utility costs and bills are 92.1 percent compared to the national average. Tennessee has one of the lowest costs of living in terms of utility bills around the country.
However, whether you can easily afford the cost of utilities in a Tennessee home depends on your household income. Utility costs include the average cost of heating and cooling a home, including the costs of electricity, natural gas, and other fuels.
You can generally expect to pay an average of $391 per month for your utility bills. However, your utility bills will also depend on how large or small your home is.
The transportation costs in Tennessee are significantly cheaper than the average costs for the nation. If the United States average transportation costs rank at 100, the transportation fees in Tennessee rank at 90.2.
Transportation can include public transportation, such as buses or trains. Furthermore, you can consider private transport, including the costs of vehicles, parking, oil changes, and car repairs. If you need transportation in Tennessee, you can expect to pay less than in many other states around the country.
Housing Prices in Tennessee
In Tennessee, a one-bedroom apartment costs $786 per month, while the national average is $1,048 per month. A two-bedroom apartment is slightly more at $937 every month, while the average cost for a two-bedroom in the country is $1,278.
Housing prices have grown over the last year, so you may also see rent prices increase. As of July 2022, the housing prices in Tennessee rose by 14.9 percent year-over-year.
During the same period, the number of homes for sale increased by 15.6 percent, while the number of homes sold dropped by 16.8 percent. Homes stay on the real estate market for a median of 33 days before getting sold. As such, fewer home buyers can afford the homes of Tennessee today.
Food & Shopping
Groceries and food prices are also lower in Tennessee as compared to the rest of the country. These prices are 95.4 percent of the average U.S. food costs.
The average annual per-capita cost of non-restaurant food and beverages in Tennessee is $2,906. Essentially, one person will spend $242 on groceries per month in Tennessee. In general, you can expect to pay an average of $37,499 per year for all your living expenses in the state of Tennessee.
Based on research from the Council for Community and Economic Research, the cities of Knoxville, Jackson, and Memphis have the lowest food prices in Tennessee as compared to Nashville and Kingsport.
However, recent inflation prices have increased American grocery bills nationwide. So expect to pay more on your monthly food costs.
Health and Medical Costs
Healthcare costs are not cheap in Tennessee. You can expect to pay slightly more than average (101.9 percent) when compared to the national average for medical costs. The average annual per-capita cost of medical care in Tennessee is $6,295.
However, what you end up spending on healthcare will greatly depend on multiple factors, especially your overall health. Medical spending greatly depends on the location you live in and the medical needs you have. Furthermore, your out-of-pocket costs also depend on the type of healthcare coverage you have.
You can expect to pay slightly more in medical costs as compared to other parts of the country.
Average Cost of Living in Tennessee
As previously mentioned, you can expect the overall average cost of living in Tennessee to reach $37,499 per person per year. For housing and utilities, you can expect to pay an average of $7,056.
The average cost of healthcare reaches around $6,300, while grocery bills end up at nearly $3,000. The costs of gas and energy bills end up at about $770, while the cost of all other personal spending averages out to $20,469.
Child care costs anywhere from $781 to $1,099 per child per month. Furthermore, Tennessee does not have an income tax, so you won’t need to worry about that cost. However, if you own a home, you will need to cover property taxes and pay back your mortgage loan.
The comprehensive guide above should have provided you with the information you need to better understand the cost of living in Tennessee.
If you have noticed that the Tennessee cost of living and housing expenses have risen, you may want to start selling a house and moving out of state. Are you looking to sell a house fast in Memphis? If so, you should consider seeking a cash buyer, as these investors can quickly purchase a home in only a few short weeks.
They do not need to wait on a mortgage loan approval or a home inspection. You can even sell the home as-is. We buy houses Tennessee residents love, so make sure to contact us today!