Thinking about Relocating? Austin vs. Nashville: A 2025 Cost of Living Comparison

Table of Contents:

• 1. Why Austin and Nashville Are Trending Now
• 2. Overall Cost of Living Comparison
• 3. Housing Costs: Rent vs. Own
• 4. Groceries and Dining
• 5. Utilities
• 6. Transportation: Public vs. Personal
• 7. Healthcare Expenses
• 8. Taxes and Local Fees
• 9. Lifestyle Costs: Entertainment, Fitness & Childcare
• 10. Average Monthly Budgets
• 11. What You Can Get for $3,000/Month
• 12. Conclusion and Next Week’s Preview

1. Why Austin and Nashville Are Trending Now

Both Austin and Nashville have captured the attention of digital nomads, tech startups, remote workers, and families looking for opportunity in high-growth, lower-cost areas compared to coastal metros.

Austin, TX:

• Dubbed “Silicon Hills,” Austin’s tech scene has exploded, attracting giants like Tesla, Google, and Apple.
• Austin’s music and food culture blends coolness with casual living.
• No state income tax increases take-home pay.

Nashville, TN:

• Often called “The Next Big Boomtown,” Nashville is seeing surges in healthcare tech and fintech sectors.
• Known for its Southern hospitality, quality of life, and thriving music industry.
• Fast-growing but still feels manageable for families and creatives.

Both cities have experienced an influx of young professionals and families leaving high-cost metros like San Francisco and New York in search of affordability mixed with vibrancy.

2. Overall Cost of Living Comparison

While Austin is roughly 19% above the national average, Nashville is only about 4% higher, making it a more affordable option on paper. But let’s dig deeper into individual expenses.

3. Housing Costs: Rent vs. Own

Housing is the largest cost differentiator between these two trendsetters.

Median Home Prices (2025):

• Austin, TX: $480,000
• Nashville, TN: $415,000

Average Monthly Rent (2-Bedroom Apartment):

• Austin, TX: $2,250
• Nashville, TN: $1,950

Despite both experiencing price growth, Nashville gives buyers and renters some breathing room.

4. Groceries and Dining

Both cities offer an exciting food scene, but how does that impact your wallet?

Monthly Grocery Estimate (Single Person):

• Austin: $360
• Nashville: $340

Dining Out (Average Meal for Two at Mid-range Restaurant):

• Austin: $70
• Nashville: $60

While Austin offers more upscale dining and international food options, you’ll pay a bit more each month for those tasty tacos and brunch outings.

5. Utilities

Average Utility Costs (Electricity, Gas, Water, Trash, Internet):

Nashville again edges ahead in affordability here too, though both are within a manageable range for most households.

6. Transportation: Public vs. Personal

Both cities are car-centric with growing but modest public transit systems.

Average Monthly Transportation Costs:

Austin:

• Gas: $3.40/gallon
• Public Transit: $48
• Estimated Monthly Cost (Car Owner): ~$350

Nashville:

• Gas: $3.25/gallon
• Public Transit: $44
• Estimated Monthly Cost (Car Owner): ~$330

While Austin has better bike infrastructure and eco-conscious transit programs, Nashville has slightly lower overall costs.

7. Healthcare Expenses

Average Monthly Healthcare Premiums (Mid-Tier PPO Plan):

• Austin: $360 (individual) / $1,050 (family)
• Nashville: $330 (individual) / $980 (family)

Costs are marginally lower in Nashville, though Austin has more major hospital networks and specialized care facilities.

8. Taxes and Local Fees

Texas and Tennessee both benefit residents with no state income tax. However, other local taxes do apply.

Property Tax Rates:

• Austin (Travis County): ~1.8%
• Nashville (Davidson County): ~0.75%

Sales Taxes:

• Austin: 8.25%
• Nashville: 9.25%

Higher property taxes in Austin could impact long-term homeownership affordability.

9. Lifestyle Costs: Entertainment, Fitness & Childcare

Monthly Gym Membership:

• Austin: $55
• Nashville: $50

Movie Tickets (per person):

• Austin: $14
• Nashville: $13

Childcare (Daycare, Full-Time, Monthly):

• Austin: $1,280
• Nashville: $1,100

Nashville continues being easier on family budgets—important for young or growing households.

10. Average Monthly Budgets Snapshot

Nashville comes in about 10-15% cheaper across the board, largely thanks to lower housing, childcare, and everyday expenses.

11. What You Can Get for $3,000/Month

Austin, TX:

• Rent a modern 1-bedroom downtown
• Commute via e-scooter or carshare
• Eat out 4–5 times/month
• Basic gym and healthcare coverage
• Little room left for savings

Nashville, TN:

• Rent a chic 2-bedroom in a trendy neighborhood
• Personal car ownership + gas
• Weekly outings and entertainment
• Gym, streaming, healthcare, AND potential to save $200–$300

At the $3,000 threshold, you’re living comfortably in Nashville and merely getting by in Austin.

12. Conclusion: Which City Offers Better Value?

Final Verdict:
If you’re looking for dynamic job opportunities, an upbeat culture, and you don’t mind shelling out a little extra to live in the heart of the new Silicon South—Austin could be your playground.

But if you prioritize overall affordability, especially for young families or solo entrepreneurs trying to stretch every dollar—Nashville makes a compelling case as the smart-value boomtown of 2025.

Recommendation: Explore zip-code-specific data on CompaniesByZipcode.com to see how individual neighborhoods within Austin and Nashville compare—you might be surprised at the micro-differences in cost.

Next Week: Coastal Living Showdown—San Diego vs. Miami: Sunshine, Beachfront Living & Budget Battles. Stay tuned!