Living in Tennessee has tons of perks, from enjoying the dynamic music scene in Nashville to the delicious Southern cuisine. But, if bigger, better-known cities like Nashville and Memphis are out of your budget, you may want to turn your attention to Knoxville.
Located in the eastern part of the state along the Tennessee River, this city of around 192,648 has a rich history, higher education and access to the spectacular great outdoors of the nearby Great Smoky Mountains National Park. In the revitalized downtown area, residents and visitors can shop, dine, drink craft beer and explore while surrounded by 19th-century buildings.
As the home of the University of Tennessee’s flagship campus, Knoxville has a distinct college-town feel with active arts and culture. Thanks to the local U of T Volunteers sports teams, collegiate athletics are a big deal here, as well. Finally, being the gateway to the nearby national park and the Appalachian Mountains makes Knoxville a great base camp for outdoor adventures from canoeing to hiking. With all these accolades, it’s no wonder that Knoxville ranks as one of the best places to live in Tennessee.
Furthermore, Knoxville boasts an affordable cost of living that’s appealing to everyone from students to families. With an overall cost of living that’s 16.8 percent lower than the national average, it’s even one of Tennessee’s most affordable major cities to live in. Let’s dive into the different cost of living expenses here to see if Knoxville could be the right fit for your budget and lifestyle.
Knoxville housing prices
At 31.7 percent below the national average, housing prices in Knoxville are among the most affordable in the state. The cost of housing here is down 1.6 percent from last year. In comparison, housing costs in the capital city of Nashville are 4.4 percent higher than the national average.
But, those low housing costs are clearly catching people’s attention. Both the rental and homeowning markets have seen significant growth over the past year. The average monthly rent for a one-bedroom apartment is up 20 percent from last year to $1,310. Two-bedroom rental rates are up 30 percent to $1,474. While rates remain reasonable for now, that could change with the steady upward growth.
If you want to own a house in Knoxville, prices are also on the rise. The median sale price for a house here is $319,900, which is 23.1 percent higher than last year. For context, the national median sale price for a house is $406,074.
Food prices
One of the best parts of living in a Southern state is the fantastic food, and Knoxville is no exception. At restaurants around town, you can enjoy Tenneessee’s signature state barbecue, as well as other Southern staples like rich mac and cheese, collard greens, fried chicken and fried green tomatoes.
Along with the affordable housing, broke college students and budget-savvy families living in Knoxville will find that food costs here are also on the low side. Food prices are 9.6 percent below the national average, which is 1.6 percent higher than last year.
To put those figures into perspective, let’s look at the average food costs of some basic grocery items. Picking up a dozen eggs costs $1.80, a half-gallon of milk is $2.31 and a loaf of bread is $3.80. Proteins come out to $4.19 for a pound of ground beef and $12.98 for a nice steak.
Although Knoxville has some of the lowest food prices compared to the national average, individual prices in different cities are actually pretty similar. In Nashville, whose food prices are 4.4 percent below the national average, a dozen eggs are one cent cheaper at $1.79. A half-gallon of milk goes down to $2.22, but a pound of ground beef is more expensive at $5.33.
Utility prices
Of all the different cost of living categories, the cost of utilities in Knoxville is the closest to the national average, falling just 3.6 percent below. This is just 0.2 percent less than last year.
So, why are utility prices some of the highest cost of living expenses here? During the hot and humid summer months, those air conditioning units definitely get a workout. While winters are chilly and generally mild, it actually can get cold enough for snow to fall. So, Knoxville sees all four seasons, which leads to variations in utility usage throughout the year. But, in general, the average monthly energy bill is around $167.86.
Utility prices in Knoxville are actually among the most expensive in the state. In Nashville, the average monthly energy bill is $138.74 and utility costs are 10.7 percent below the national average. One of the few towns with higher utility prices than Knoxville is Morristown, which is one percent above the national average. There, the average monthly energy bill is $175.45.
Transportation prices
With a low walk score of 30 and an even lower bike score of 28, it’s a good idea to have a car when living in Knoxville. Not only does this make it easier to get around, but you can easily head out of town for adventures in the Great Smoky Mountains National Park and other parts of the scenic and the wild Appalachian Mountains. Some areas like downtown and the college campus are great to explore on foot, though.
Similar to other cost-of-living areas, transportation costs here are lower than the national average at 7.8 percent. This has gone up over the past year by 6.3 percent.
One benefit of having a car in Knoxville and Tennessee, in general, is that there are no toll roads. If you don’t want to use a car to get around Knoxville, you can use the local Knoxville Area Transit (KAT) bus system. Residents have 23 different routes to choose from that crisscross both the city center and branch out to the surrounding areas. A one-way pass costs $1, a full-day pass is $2 and a monthly 30-day pass costs $30.
Residents can also take advantage of the free trolley that offers rides around downtown Knoxville and the University of Tennessee campus area.
Healthcare prices
At 8.4 percent below the national average, healthcare costs in Knoxville are on the more affordable side. Rates here are down 0.4 percent from the previous year. Many other major Tennessee cities are in a similar ballpark. Nashville is 10 percent below the national average and Memphis is 9.4 percent below. Cookeville is 15 percent below the national average, so Knoxville sits nicely in the middle for healthcare costs. The university also has a well-regarded health sciences program.
It’s important to note that since healthcare needs vary by person and insurance, the average costs of different healthcare services in Knoxville won’t always apply to everyone. Your costs are higher or lower depending on your needs. For a rough overview, though, going to the doctor’s office for a check-up is $112. Getting your teeth checked out at the dentist is around $91.60 and having an eye appointment at the optometrist is $91.
For over-the-counter meds like ibuprofen, expect to pay around $9.38. If you need prescription medications, you’ll definitely want the benefit of having insurance since average prescriptions cost around $510.10.
Compared to other Tennessee cities, healthcare costs in Knoxville are pretty middle-ground. A doctor’s visit in Nashville is $99.14. But in Jackson, heading to the doctor’s office will set you back $137.33.
Goods and services prices
Living in a fun city like Knoxville, you want to take advantage of everything it has to offer. That means going out to the movies, meeting friends for pizza or doing other things out on the town. That’s where miscellaneous goods and services come into your monthly budget. This area of expense covers everything from fun activities and goods to necessary goods or services you need on a semi-regular basis like getting a haircut.
Goods and services are one of the lowest cost of living areas in Knoxville, falling 13.7 percent below the national average. This is 0.1 percent lower than last year, so prices have remained pretty consistent over the past year. In comparison, goods and services in Nashville are only 4.5 percent below the national average.
Getting your haircut in Knoxville is around $16 compared to $21.80 in Nashville. Movie tickets come out to $11.06 and taking your clothes to the dry cleaners sets you back $15.45.
Taxes in Knoxville
In Tennessee, the general state sales tax is 7 percent. Counties and cities have the option to add an additional local sales tax on top of the statewide rate. In Knoxville, the sales tax is 9.25. To put that in perspective, say you spend $1,000 throwing a giant backyard barbecue party. You’ll pay an additional $92.50 in sales tax.
Other cities in Tennessee have higher sales taxes, though. The highest sales tax is in Memphis and several other cities at 9.75 percent. The lowest sales tax is 8.5. So, Knoxville sits at a good middle point for sales tax rates.
How much do I need to earn to live in Knoxville?
In order to figure out if you can comfortably afford to live in Knoxville, you need to work backward from your biggest monthly expense. Housing costs like rent are typically your biggest expense each month. To ensure that you still have enough money for other expenses like food and utilities, experts recommend that you only spend 30 percent of your monthly income on rent.
Considering that the average one-bedroom apartment in Knoxville costs $1,299, you’ll need to make $4,330 each month. That comes out to $51,960 annually. The median household income in Knoxville is $41,598, which potentially gives you the option to scope out some of the cooler, more popular neighborhoods to live in.
If you’re unsure what you can afford in rent, use our rent calculator to do some calculations and figure out what fits your budget.
Free things to do
Although Knoxville is overall a fairly affordable place to live, it never hurts to take advantage of fun and free things to do around town.
If you love being outdoors, the Ijams Nature Center on the outskirts of town is a popular option with 10 miles of hiking trails and scenic boardwalks along wetlands and the Tennessee River. The Knoxville Botanical Garden and the University of Tennessee Gardens are other great places to get outdoors and learn about nature for free.
If you prefer more in-town fun, hit up the local farmer’s markets or wander around downtown looking for cool murals. History buffs can dig into genealogy records at the McClung Collection or visit the Marble Springs State Historic Site. The Knoxville Museum of Art also offers free admission to some exhibits.
Living in Knoxville
Whether you’re a sports fan or a nature lover who spends all your time hiking, Knoxville’s blend of mid-sized city fun and outdoor access appeals to a wide range of interests and lifestyles. Top it off with its affordable cost of living and it’s easy to see why everyone from young students to families enjoy the quality of life here.
The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of October 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.
Source: rent.com