Nashville vs Phoenix: cost of living compared
Phoenix is 6% cheaper than Nashville overall. Nashville (TN) has no state income tax; AZ tops out around 2.5%.
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
Comparing Nashville and Phoenix reveals that Phoenix generally offers a more affordable overall cost of living. This difference is largely driven by housing expenses, which are noticeably higher in Nashville. While some other categories show smaller variations, the significant gap in housing costs makes Phoenix the less expensive option when considering a move between these two growing metropolitan areas.
Housing
Housing is a key differentiator, with Nashville being considerably more expensive for both home purchases and rentals. The median home price in Nashville is higher, and a typical one-bedroom apartment also commands a greater monthly rent. Phoenix, known for its sprawling, newer developments, often features more contemporary housing stock, while Nashville's housing market can include a mix of older and newer construction.
Taxes and everyday costs
Daily expenses also vary. Phoenix residents typically face lower transportation costs and slightly cheaper food, though utilities are more expensive there, particularly due to air conditioning needs in the desert climate. Healthcare costs are roughly similar in both metros. A significant difference is the state income tax: Arizona has one, while Tennessee does not, impacting take-home pay for many.
Lifestyle trade-offs
Beyond costs, a move means adjusting to different environments. Phoenix offers a desert climate with abundant sunshine and hot summers, while Nashville experiences four distinct seasons with humid summers and milder winters. Phoenix relies heavily on car travel across its expansive layout, whereas Nashville, though also car-centric, has a more compact feel in its urban core. Both are dynamic cities with distinct regional characteristics.
Bottom line
For those weighing a move, Phoenix generally presents a more budget-friendly option, primarily due to its more accessible housing market. While utilities might be higher in the desert, and state income tax is a factor, the overall daily spending and housing costs in Phoenix tend to be lower than in Nashville. Understanding these differences is crucial for a household budget when relocating between these vibrant cities.
| Measure | Nashville, TN | Phoenix, AZ |
|---|---|---|
| Overall cost of living (US avg = 100) | 108 | 102 |
| Housing index | 119 | 105 |
| Transportation index | 104 | 100 |
| Food index | 98 | 96 |
| Healthcare index | 98 | 98 |
| Utilities index | 98 | 112 |
| Misc index | 95 | 92 |
| Median home price | $438,000 | $388,000 |
| Median 1-bedroom rent | $1,650/mo | $1,450/mo |
| Average commute | 29 min | 28 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Phoenix home with the True Cost Calculator.