RUTHERFORD COUNTY, TN - The rising cost of housing in Rutherford County continues to squeeze buyers — not only first-time homeowners and families relocating for work, but also longtime residents who once planned to retire in their 60s. While some of that pressure comes from fast-paced population growth and increased demand for new homes, a lesser-known factor is also driving prices upward: taxes and fees imposed at the local level.

Nearly two years ago, State Representative Mike Sparks filed House Joint Resolution 139 (HJR0139), calling for a TACIR study on affordable housing in Tennessee. On Friday (10/31/2025), Sparks revisited the issue and pointed to findings from the 2024 report, which showed that rising taxes and development-related fees — including impact fees — are contributing to higher housing costs statewide, adding yet another layer to the affordability challenge facing Middle Tennessee homebuyers...

With housing costs continuing to rise, many buyers now treat a mortgage as a permanent line item in their budget, refinancing every few years instead of working toward paying off the loan. That pattern creates an ever-revolving cycle of debt — one that keeps homeowners locked into 30-year mortgages well into their retirement years... County Commissioner Pettus Read told WGNS that many homebuyers approach purchasing a home the same way some people shop for a car — choosing based on what they can afford right now instead of what makes long-term financial sense... Past generations would set a goal to payoff their home before retirement...

Current home listings priced between $450,000 and $500,000 are often the same properties that originally sold for around $85,000 in 1994, when they were first built. Today, those homes typically offer 1,900 to 2,000 square feet of living space, with three bedrooms and two bathrooms — a standard layout in many established subdivisions across Rutherford County.

Likewise, homes that sold for $125,000 in 2010 are now entering the half-million-dollar range, even though they still sit on quarter-acre lots and average roughly 2,000 square feet. To put that into perspective, just 15 years ago, a $500,000 budget in Murfreesboro would have purchased a 6,000 to 7,000-square-foot home, often with land, upgrades, and plenty of space. Today, that same amount buys a home roughly one-third of that size.

In 2023, a 2,000-square-foot home priced between $380,000 and $398,000 cost buyers about $190 to $199 per square foot. Fast forward to 2025, and those same homes are now selling for around $500,000, which pushes the price to roughly $250 per square foot — a sharp increase in just two years.

It appears Middle Tennessee will remain a highly competitive market for homebuyers, according to data from the latest Housing Tennessee Report, released by MTSU on October 10. The report revealed a 'quiet strength' in the statewide housing market during the second quarter of 2025, noting rising home prices and shrinking vacancy rates. However, it also showed a notable drop in both construction permits and home closings, suggesting buyers and builders are feeling the pressure of affordability challenges.

First-Time Buyers Restricted to $200k-and-Under Market - For new or budget-conscious buyers in Rutherford County, choices under $200,000 are extremely limited. According to Zillow, just six homes fall within the $130,000–$199,000 range — including at least one foreclosure — and all measure between 1,000 and 1,700 square feet. Nearly every option is a townhome or a property requiring repair work.

Moving into the $200,000–$250,000 bracket opens the door slightly wider, with around 19 listings available, though they are still primarily condos and townhomes rather than traditional single-family homes.

Inventory Expands — But Only for Those Who Can Pay More - Buyers willing and able to stretch into the $250,000–$330,000 range suddenly gain access to more than 200 active listings, including townhomes, condominiums, and single-family houses across Murfreesboro, La Vergne, and surrounding areas. A price tag that once felt high has now become the “starter home” threshold in 2025.

Hidden Costs Add Up: HOA, PMI & Taxes - Even once a home is found, additional expenses often catch buyers off guard. HOA fees in new and existing neighborhoods range from $25 to $200 per month, while Private Mortgage Insurance (PMI) can stay attached to a payment for years if buyers put less than 20% down.

For example, on a $329,000 home with just 5% down, a buyer’s estimated monthly payment reaches $2,379.12, including PMI, property taxes, insurance, and interest.

Market Trends: Prices Up, Foreclosures Slightly Rising - Middle Tennessee home prices are now up 3.7% year over year, while late mortgage payments are down by .10%. Foreclosures have ticked up by a mild .05%, but low unemployment is helping stabilize the market.

Rutherford County continues to remain one of the strongest job markets in Tennessee, tied in August with several counties at 3.0% unemployment, ranking 9th lowest in the state.

The Haunted Housing Twist - After Halloween came to a close this past Friday, some buyers say they'd rather live with ghosts than deal with today’s housing prices. A recent survey by Mad City Windows & Baths found that 57% of Americans would move out if they believed their house was haunted, but 56% would still consider buying one — especially if it meant a cheaper price.

With prices having risen 44% since January 2021, even a “haunted house discount” is starting to sound appealing to some.