The most expensive city in this state is still cheaper than the average American city

24/7 Wall St. Perspectives

• Nationally, the cost of living tends to be higher in cities than in places outside major metropolitan areas
• However, consumer prices can vary considerably from city to city, and some metro areas in Tennessee are more affordable for a wider range of incomes than others.
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The overall cost of living has risen at a historic rate in recent years, and the impact on American families has been both financial and psychological. A recent survey by the US Census Bureau found that more than 57% of Americans reported difficulty meeting their usual household expenses in the past week, and that more than 93% of US adults experienced stress related to higher prices in the last two months. .

right Consumer price indexthe inflation rate began to rise in early 2021 and peaked in June 2022, when prices of goods and services were 9.1% higher than they were a year earlier. While inflation has declined steadily in recent months, the CPI remains above the Federal Reserve’s 2 percent target rate.

While no one has been exempt from rising consumer prices, in relative terms the total cost of living varies considerably across the country. In Tennessee, for example, goods and services were about 8.2 percent less expensive, on average, than they were nationally in 2022 — the latest year of data available. Despite a lower cost of living, 57.3 percent of Tennessee households had trouble paying household expenses in the past week, and 95.2 percent of adults in the state reported stress from rising prices. (Here’s a look at the most expensive states to live in.)

In general, Americans living in large cities face a higher cost of living than those in smaller, rural communities. According to the Bureau of Economic Analysis, goods and services are about 11.4 percent more expensive in U.S. metropolitan areas than outside metropolitan areas.

According to this model, goods and services are only about 6.7 percent less expensive than the average across all 10 Tennessee metro areas and 14.8 percent less expensive in non-metro areas. However, the overall cost of living can vary significantly from one Tennessee city to another. In the state’s least expensive metro area, consumer prices are about 13.8 percent lower than the national average. Meanwhile, in the state’s most expensive city, prices are only about 3.4 percent lower than average. (Here’s a look at the most affordable city in each state.)

This is the cost of living in every metro area in Tennessee, ranked.

Why it matters

Inflation, as measured by the Consumer Price Index, hit a multi-decade high in 2022, and as of July 2024, the CPI remains well above the Federal Reserve’s 2% target. Even though prices tend to be much higher in cities than in rural communities, the vast majority of Americans—80 percent according to the U.S. Census Bureau—live in an urban area. However, consumer prices can vary considerably from city to city, and some metro areas in Tennessee are more affordable for a wider range of incomes than others.

10. Kingsport-Bristol, TN-VA

• Total cost of living, 2022: 13.8% lower than the US average
• Median household income, 2022: $52,887 ($12,367 less than statewide average)
• Median home value, 2022: $185,700 ($99,100 less than statewide average)
• Population of the metropolitan area: 310,483

9. Jackson, TN

• Total cost of living, 2022: 13.2% lower than the US average
• Median household income, 2022: $55,720 ($9,534 less than statewide average)
• Median home value, 2022: $174,100 ($110,700 less than statewide average)
• Population of the metropolitan area: 181,579

8. Johnson City, TN

• Total cost of living, 2022: 12.5% ​​lower than the US average
• Median household income, 2022: $58,660 ($6,594 less than statewide average)
• Median home value, 2022: $221,400 ($63,400 less than statewide average)
• Population of the metropolitan area: 211,849

7. Morristown, TN

• Total cost of living, 2022: 12.3% lower than the US average
• Median household income, 2022: $59,099 ($6,155 less than statewide average)
• Median home value, 2022: $203,500 ($81,300 less than statewide average)
• Population of the metropolitan area: 146,172

6. Cleveland, TN

• Total cost of living, 2022: 10.8% lower than the US average
• Median household income, 2022: $62,624 ($2,630 less than statewide average)
• Median home value, 2022: $230,300 ($54,500 less than statewide average)
• Population of the metropolitan area: 129,303

5. Clarksville, TN-KY

• Total cost of living, 2022: 8.9% lower than the US average
• Median household income, 2022: $65,113 ($141 less than statewide average)
• Median home value, 2022: $251,800 ($33,000 less than statewide average)
• Population of the metropolitan area: 336,447

4. Knoxville, TN

• Total cost of living, 2022: 8.7% lower than the US average
• Median household income, 2022: $67,801 ($2,547 more than the statewide average)
• Median home value, 2022: $281,900 ($2,900 less than statewide average)
• Population of the metropolitan area: 906,674

3. Memphis, TN-MS-AR

• Total cost of living, 2022: 8.2% lower than the US average
• Median household income, 2022: $64,008 ($1,246 less than the statewide average)
• Median home value, 2022: $244,100 ($40,700 less than statewide average)
• Population of the metropolitan area: 1,330,954

2. Chattanooga, TN-GA

• Total cost of living, 2022: 7.5% lower than the US average
• Median household income, 2022: $69,018 ($3,764 more than statewide average)
• Median home value, 2022: $265,800 ($19,000 less than statewide average)
• Population of the metropolitan area: 573,767

1. Nashville-Davidson–Murfreesboro–Franklin, TN

• Total cost of living, 2022: 3.4% lower than the US average
• Median household income, 2022: $80,034 ($14,780 more than the statewide average)
• Median home value, 2022: $421,500 ($136,700 more than the statewide average)
• Population of the metropolitan area: 2,046,715

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