Page Hook:

Young professionals, remote workers, and families alike are packing their bags and heading to some of the South’s most exciting metro areas—but is one of these hot cities secretly more affordable than the other? With Austin, Texas, and Nashville, Tennessee, both rapidly evolving into cultural, economic, and entrepreneurial hubs, it’s worth digging deeper into how far your dollar really goes in each city. Whether you’re relocating for career opportunities, tax benefits, or just a better lifestyle, this comparison could help you decide where to plant your roots in 2025.

Table of Contents:

1. Why Compare Austin and Nashville?
2. Quick Overview: Austin vs. Nashville at a Glance
3. Housing Costs
4. Groceries and Dining
5. Utilities
6. Transportation
7. Healthcare Expenses
8. Taxes and Local Fees
9. Lifestyle Costs
10. Total Monthly Cost Estimates
11. Why These Cities Are Trending
12. Emerging City Spotlight: Chattanooga, TN
13. Conclusion and Next Week’s Preview

1. Why Compare Austin and Nashville?

Both cities are booming—socially, economically, and culturally. Austin offers a legendary live music scene, a growing tech economy, and a distinctly progressive vibe, while Nashville boasts country music roots, a rising startup scene, and Southern charm. With both appealing to remote workers, tech professionals, creatives, and families, comparing their cost of living offers valuable insights for anyone considering a move in 2025.

2. Quick Overview: Austin vs. Nashville at a Glance

3. Housing Costs

Austin

• Median Home Price: $520,000
• Avg Rent (1BR): $1,750/month
• Avg Rent (3BR): $2,900/month

Nashville

• Median Home Price: $445,000
• Avg Rent (1BR): $1,495/month
• Avg Rent (3BR): $2,450/month

Both cities have experienced surges in housing demand due to sustained population growth. While Austin’s tech boom has driven prices up significantly, Nashville’s housing market has more breathing room and offers slightly more affordability for both renters and buyers.

4. Groceries and Dining

Austin

• Grocery cost index: 102 (2% above national average)
• Dining out (mid-range restaurant): $60 for two

Nashville

• Grocery cost index: 99 (1% below national average)
• Dining out (mid-range restaurant): $55 for two

Groceries in Nashville tend to be a bit cheaper, and you’ll find many affordable local eateries compared to Austin’s fast-growing (and higher-priced) culinary scene.

5. Utilities

Austin

• Electricity, heating, water, and garbage (915 sq ft apt): ~$195/month
• Internet: ~$70/month

Nashville

• Electricity, heating, water, and garbage (915 sq ft apt): ~$180/month
• Internet: ~$65/month

Utility prices are fairly close, though Austin has higher summer peaks due to extreme heat and A/C usage.

6. Transportation

Austin

• Personal car required for most residents
• Average monthly transit pass: $41.25
• Gas Price: ~$3.15/gallon

Nashville

• Limited public transit coverage
• Average monthly transit pass: $50
• Gas Price: ~$3.00/gallon

Both cities are car-dependent, but Austin edges out with slightly better public transport and bike-friendly infrastructure in denser areas.

7. Healthcare Expenses

Austin

• Monthly premium (single adult): ~$440
• Annual out-of-pocket expenses: ~$1,200

Nashville

• Monthly premium (single adult): ~$410
• Annual out-of-pocket expenses: ~$1,100

Austin’s larger concentration of tech and university hospitals can be a benefit, especially for those requiring specialized care. However, Nashville’s healthcare industry is one of the largest in the region, and prices remain competitive.

8. Taxes and Local Fees

State Income Tax: Both Texas and Tennessee have zero state income tax.

Property Taxes:

• Austin: ~1.81%
• Nashville: ~0.78%

Austin’s high property taxes can add up quickly, especially for homeowners. Nashville’s lower property tax rate may offer relief despite slightly higher sales taxes.

Sales Tax:

• Austin: 8.25%
• Nashville: 9.25%

9. Lifestyle Costs

Entertainment & Social Life

• Austin: ~$250/month (live music, cultural events, outdoor lifestyle)
• Nashville: ~$220/month (music venues, southern cuisine, sports)

Fitness & Health Clubs

• Austin: ~$55/month
• Nashville: ~$45/month

Childcare (full-time, monthly)

• Austin: ~$1,180
• Nashville: ~$975

Nashville remains more affordable for families, while Austin’s lifestyle costs are somewhat higher due to a surge in demand and population.

10. Total Monthly Cost Estimates

Breakdown includes rent, food, transportation, utilities, healthcare, and basic lifestyle expenses.

11. Why These Cities Are Trending

Austin:

• Massive influx of tech companies including Tesla, Apple, and Google
• Popular with digital nomads and creative professionals
• Year-round music festivals and a strong outdoor culture

Nashville:

• Booming healthcare and music industries
• Fast-growing startup ecosystem
• Lower overall cost of living and more accessible housing market

Both cities are part of the “Sunbelt Surge” which has seen huge migration thanks to warmer weather, job availability, and better tax environments.

12. Emerging City Spotlight: Chattanooga, TN

Just two hours from Nashville, Chattanooga is drawing remote workers and families with its fiber-optic-powered internet infrastructure, vibrant outdoor scene, and affordability.

Highlights:

• Median Home Price: ~$310,000
• Average Rent (1BR): ~$1,100/month
• Gigabit internet citywide
• Scenic mountain views and abundant trails

Chattanooga is becoming a surprising tech and entrepreneurship hotspot in the Southeast.

13. Conclusion and Next Week’s Preview

Bottom Line:
Austin and Nashville each have unique advantages. If you’re looking to plug into the next Silicon Valley-style boom and don’t mind housing prices, Austin may be worth it. But if family-friendliness, affordability, and strong job growth in healthcare and services are priorities, Nashville wins out.

Curious about your next move? Head to CompaniesByZipcode.com to explore in-depth, zip-code-specific data that reveals the real cost of living—block by block.

Next Week:
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