Chattanooga vs. Nashville: Cost of Living Breakdown

by Kendra Jarrell

Chattanooga vs. Nashville: Cost of Living Breakdown

When deciding between two vibrant Tennessee cities like Chattanooga and Nashville, cost of living is often a key factor. Both cities offer distinct lifestyles and opportunities, but how do they compare when it comes to expenses like housing, transportation, and day-to-day living? Let’s break it all down so you can make an informed decision.


1. Housing Costs

Chattanooga:

  • Median home price: $325,000
  • Median rent: $1,100/month (for a 1-bedroom apartment)
  • Chattanooga offers affordable housing options in diverse neighborhoods, from trendy North Shore to family-friendly Hixson. You’ll get more space and bang for your buck compared to Nashville.

Nashville:

  • Median home price: $475,000
  • Median rent: $1,800/month (for a 1-bedroom apartment)
  • Nashville’s housing market is competitive due to its booming economy and rapid population growth. Expect higher prices, especially in popular neighborhoods like East Nashville or The Gulch.

Winner: Chattanooga for affordability and value.


2. Transportation Costs

Chattanooga:

  • Average commute time: 20 minutes
  • Public transit: Limited but affordable, with CARTA buses and free electric shuttles downtown.
  • Gas prices and car insurance costs are lower than national averages.

Nashville:

  • Average commute time: 26 minutes
  • Public transit: More options, including buses and commuter rail, but not as extensive as in larger metro areas. Traffic congestion during peak hours adds to travel costs.
  • Higher parking fees and gas prices compared to Chattanooga.

Winner: Chattanooga for shorter commutes and lower transportation costs.


3. Utilities and Services

Chattanooga:

  • Monthly utility costs: Approximately $150-$180 for electricity, water, and internet.
  • Chattanooga is known for EPB Fiber Optics, offering some of the fastest and most affordable internet in the country.

Nashville:

  • Monthly utility costs: Approximately $200-$230, reflecting higher rates for electricity and water due to demand.
  • Internet options are solid but tend to be pricier than Chattanooga’s EPB services.

Winner: Chattanooga for lower utilities and superior internet value.


4. Groceries and Dining

Chattanooga:

  • Grocery prices are slightly below the national average, with local farmers’ markets offering affordable fresh produce.
  • Dining out: An average meal at a mid-range restaurant costs $12-$15.

Nashville:

  • Grocery prices are closer to or slightly above the national average due to higher demand.
  • Dining out: An average meal at a mid-range restaurant costs $15-$20, especially in trendy areas.

Winner: Chattanooga for more affordable groceries and dining options.


5. Entertainment and Lifestyle

Chattanooga:

  • Outdoor activities like hiking and kayaking are often free or low-cost.
  • Museums, cultural events, and attractions like the Tennessee Aquarium are reasonably priced.

Nashville:

  • Entertainment costs are higher, driven by live music venues, sporting events, and a bustling nightlife scene.
  • Tickets for concerts or events can range from $30-$100+, depending on the venue and artist.

Winner: Chattanooga for budget-friendly recreation.


6. Taxes

Both cities benefit from Tennessee’s lack of a state income tax, which is a major financial perk. However, sales tax in both areas is around 9.25%, one of the highest in the country.

Winner: It’s a tie, as tax rates are consistent statewide.


Overall Cost of Living Comparison

Expense Category Chattanooga Nashville
Housing $325,000 (median home) $475,000 (median home)
Rent $1,100 (1-bedroom) $1,800 (1-bedroom)
Utilities $150-$180 $200-$230
Groceries Below national average At or above national average
Transportation Affordable, low congestion Higher costs, more traffic
Entertainment Budget-friendly Pricier but more diverse

Which City Is Right for You?

  • Choose Chattanooga if affordability, outdoor activities, and a lower cost of living are your top priorities.
  • Choose Nashville if you’re drawn to career opportunities, a vibrant cultural scene, and can budget for higher living expenses.

Both cities offer unique benefits, but if you’re looking to stretch your dollar further while enjoying a high quality of life, Chattanooga takes the crown for cost of living.

Which city fits your budget and lifestyle best?

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Kendra Jarrell

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