Moving to a new city can be exciting, but there’s a lot of planning involved. Deciding where to live can be stressful enough, particularly when you’re unfamiliar with the neighborhoods. Once you’ve settled on your ideal location, it’s important to plan for the expenses you’ll incur in your new hometown.
Nashville is a popular place for many young professionals right now. It’s the capital of Tennessee and home of country music, with a bustling downtown area. If you’re planning on moving to Music City, USA, you’ll want to do your homework on home prices and other common costs of home ownership. An experienced real estate agent can help you better plan your move and consider all regional expenses you might not know of.
This guide will walk you through everything you need to know about affording a home in Nashville.
Typical Home Prices in Nashville in 2019
Knowing where the local market is at can help you determine not only if you should buy, but when to buy. Right now in Nashville, the local housing market is cool, which means it favors buyers. It’s important to note that while the market has slowed, home values continue to increase. The average home in Nashville is $263,500, and this number is expected to rise by another 1% over the next year.
Homes listed in Nashville average $329,000, but the median price of homes being sold is $269,200. Home sales also go through fast, with the average home sitting on the market for only two months.
To further break this down, typical one bedroom homes in Nashville average $211,000, two bedroom homes $220,000, three-bedroom homes $258,000, and four-bedroom homes spike up at $387,000.
While it’s recommended that buyers in Tennessee wait until the winter for the lowest home prices, the current state of the market makes now a good time to consider homeownership. Buying a home while the market is still cool can help ensure you don’t pay over asking price.
You’ll still want to check in with your agent for more advice on timing your home purchase, since neighborhood markets can fluctuate throughout the city.
How Much Are Nashville Property Taxes?
Purchasing a home and making monthly mortgage payments aren’t the only costs to consider when moving to Nashville. Taxes associated with real estate, like property taxes need to be included in your financial budget.
Once you find the home you want to purchase or close on a home in Nashville, you’ll want to calculate your property taxes. Property taxes are calculated based on the approximate value of your home and are used to provide local services, like public schools, fire stations, and libraries.
In Nashville, homes are assessed every four to six years to determine their assessed value. Homeowners are then required to pay property taxes based on the assessed value, rather than their home’s market value.
Property taxes are calculated at different rates depending on which Tennessee county you reside in. Nashville, located in Davidson County charges a 1% rate for property taxes. So, if you were to purchase an average three bedroom home for $258,000, your property taxes would cost $2,580 each year.
If you’re buying a home right outside of Nashville, it’s best to talk to your agent to find out if the property tax rate is any different, so you can estimate what you’ll owe.
Average Homeowners Insurance in Nashville
Many lenders require buyers to purchase homeowners insurance to receive financing. Most of the time homeowners insurance is required if buyers don’t have the standard 20% down payment and opt for a loan with lower requirements.
Homeowners insurance rates can vary depending on your lender, insurance company, home value, and zip code. For instance, a home averaging $200,000 in Nashville (zip code 37203) carries a $1,470 annual expense, with low prices starting at $991 and maximum prices capping off at $2,993.
Likewise, a home averaging $300,000 carries a $2,062 annual charge, with prices falling to almost $1,329 and rising to $4,332 in the same zip code. Differences across zip codes vary by $100 to $200 (on average).
Seeking multiple quotes on your Nashville homeowners insurance policy can help you get the best coverage for the lowest price. Just be sure the terms of your policy adhere to any terms your lender might require.
Common Home Maintenance and Repair Costs in Nashville
When owning a home, you always have to be prepared for the unexpected. Since you no longer have a landlord or property manager fixing any repairs that might pop up, you’ll handle repairs on your own. This includes not only paying for repairs and maintenance but also arranging for someone to make these repairs.
Regular upkeep of your home can include anything from maintaining HVAC systems and replacing air filters to paying for lawn mowing and snow removal services. Even replacing light bulbs and door handles can add up.
General maintenance and upkeep of your home can’t always be predicted, but you can plan to ensure you have an adequate amount of savings on hand. GoBankingRates predicts that the average homeowner spends 1% of the home’s value on general maintenance and repairs each year. Therefore, if your home is valued at $258,000, expect to pay $2,580 a year on maintenance.
Nashville is also a prime target for many national disasters including tornados, floods, earthquakes, and occasionally, hurricanes. Ensuring you have flood or fire insurance can save you thousands if your home is damaged.
Other Costs of Living in Nashville to Consider
Compared to the country’s average cost of living, Nashville is 3% more affordable to live in than most of the U.S. Not only is the cost of living just under the U.S. average, but other factors are at or below the country’s averages.
Housing prices are 9% lower than the U.S. average, while utility prices are 10% lower. Groceries are also 3% lower than the country’s average, while healthcare coverage is 18% lower. Transportation is at the country’s average pricing.
Here are average costs to expect when living in Music City:
- Utilities - $150.73 per month
- Gas - $2.62 per gallon
- Gallon of milk - $1.88
- Doctor’s visit - $90.45
- Vet visit - $53.37
Nashville is a mecca for arts, entertainment, dining, and nightlife, that you’ll want to be careful not to overspend when exploring your new city. Though prices will depend on the places you visit, here’s a quick breakdown of what you can expect to spend when visiting downtown Nashville:
- Dining out (all day) - $33 per person
- Entertainment (shows) - $22 per person
- Alcohol - $12 per person
Though affordable, if done daily, this would cost $67 per day, which adds up to $2,010 per month.
Find a Top Nashville Real Estate Agent
To make sure you’re prepared for the cost of living in Nashville, it’s recommended you partner with an experienced, local real estate agent. Your agent will not only help you navigate through the complex buying process, they’ll also help you understand the financial expectations for living in your new city. They can even make recommendations on neighborhoods to purchase in, depending on your budget.
Clever can connect you with a top agent in Nashville who can help you find the home of your dreams. Clever Partner Agents are not only experienced, they also offer home buyer rebates. These rebates put $1,000 (or 1% for homes over $500,000) back in your pocket at the time of closing.
Find out more by getting connected to a Clever Partner Agent near you.