On the Hunt for a Luxury Home in Tennessee? Here’s What It’ll Cost You Monthly, According to Realtor.com

How Much Does It Cost to Own a Luxury Home in Tennessee?

If you’re considering buying a luxury home in Tennessee, be prepared for a significant investment. According to a 2025 report by Realtor.com, Tennessee ranks among the top 25 most expensive states for luxury real estate. The luxury threshold in Tennessee is now $1,499,997, with a required minimum household income of $315,806 and an estimated monthly payment of $7,895—excluding taxes and insurance.

While that may sound steep, it places Tennessee below markets like New York ($28,889/month), Hawaii ($27,674/month), and California ($21,292/month), making it a more accessible yet prestigious destination for luxury buyers.

What Defines a Luxury Home?

Realtor.com defines luxury housing as the top 5% of homes by price in each state. In Tennessee, that generally translates to spacious properties offering high-end finishes, custom features, and resort-style amenities.

For example:

• A Germantown home listed at $1.65M includes five bedrooms, a pool, spa, and guest house.

• A Lebanon estate priced at $1.54M offers four bedrooms, a second full kitchen, and a pool.

• On Signal Mountain in East Tennessee, a $1.43M home boasts a clubhouse, stone patio, and sweeping views.

These features are increasingly appealing to relocators from higher-cost states, where comparable homes would exceed $4-5 million.

Tennessee vs. Other States: Monthly Cost to Own a Luxury Home

Here’s where Tennessee stacks up with an estimated monthly payment of $7,895:

• More affordable than VA ($8,313), NJ ($13,651), and FL ($14,029)

• More expensive than NC ($7,750), TX ($6,579), and GA ($7,098)

• Far more affordable than luxury giants like NY, HI, and CA

At the bottom of the list is West Virginia, where a luxury home can cost just $3,946/month—but Tennessee offers far more in terms of culture, economy, and lifestyle.

Methodology: How Costs Were Calculated

Realtor.com based its rankings on the top 5% of home listings by price in each state. Using a 20% down payment and a mortgage rate of 6.89%, they calculated the monthly cost and minimum salary needed under the 30% income rule (no more than 30% of income toward housing).

This benchmark provides buyers a realistic view of affordability and reinforces Tennessee’s rising appeal in the national luxury market.

What This Means for Nashville’s Luxury Real Estate Market

Middle Tennessee—and Nashville in particular—is becoming a luxury destination for buyers seeking value, space, and lifestyle without the sky-high costs of coastal metros. With more executives, remote professionals, and out-of-state relocators targeting this region, the demand for upscale homes is surging.

Whether you’re a buyer looking to move up, a seller navigating the high-end market, or relocating from a higher-priced state, now is the time to act.

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📧 Email: Jamison@BlackwellGroupTN.com
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