Birmingham vs Nashville: cost of living compared
Nashville is 38% more expensive than Birmingham overall. Nashville (TN) has no state income tax; AL tops out around 5%.
Indexes use a US average of 100: below 100 is cheaper than the national average. Housing and transportation are derived from median home prices, rents and commute times; figures come from BLS, Census ACS, Numbeo and the MIT Living Wage Calculator.
The big picture
Moving between Birmingham and Nashville presents a substantial shift in overall cost of living. Birmingham is noticeably more affordable across the board, with its overall expenses falling well below the national average. Nashville, in contrast, generally exceeds the national average for overall costs. This significant difference is primarily driven by the housing market, which shows a much bigger gap between the two metros.
Housing
Housing costs represent the largest divergence. Both buying a home and renting an apartment in Birmingham are considerably less expensive than in Nashville. Birmingham's housing market is notably below the national average, while Nashville's is significantly above it. While specific property taxes and insurance vary, the initial purchase price and monthly rent are substantially higher in Nashville, impacting ownership costs beyond the mortgage.
Taxes and everyday costs
Daily expenses also differ. Birmingham generally offers lower costs for transportation, groceries, healthcare, and utilities compared to Nashville. Additionally, Alabama has a state income tax, while Tennessee does not, which can impact take-home pay. This means that routine spending on essentials and getting around will typically be more budget-friendly in Birmingham.
Lifestyle trade-offs
Beyond costs, a move would reveal lifestyle differences. Both metros experience a humid subtropical climate, with warm summers and mild winters. Nashville generally has a faster pace and denser urban feel, while Birmingham offers a somewhat more relaxed atmosphere. Commute times are generally shorter in Birmingham, though both cities rely heavily on personal vehicles for getting around.
Bottom line
For households considering a move, the financial implications are clear. A transition from Birmingham to Nashville would mean a significant increase in overall expenses, particularly for housing. Conversely, moving from Nashville to Birmingham would offer substantial savings, making household budgets stretch considerably further due to lower costs across most categories, especially housing and everyday necessities.
| Measure | Birmingham, AL | Nashville, TN |
|---|---|---|
| Overall cost of living (US avg = 100) | 78 | 108 |
| Housing index | 58 | 119 |
| Transportation index | 88 | 104 |
| Food index | 85 | 98 |
| Healthcare index | 88 | 98 |
| Utilities index | 92 | 98 |
| Misc index | 75 | 95 |
| Median home price | $198,000 | $438,000 |
| Median 1-bedroom rent | $925/mo | $1,650/mo |
| Average commute | 25 min | 29 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Nashville home with the True Cost Calculator.