When the real estate market in many cities in the U.S. shows a positive trend, Nashville real estate market is the opposite. According to the report from WKRN News, the real estate market in Nashville shows a slowing down trend. However, it is not something that you should be worried about.
Even though it shows the slowing down trend, it doesn’t fall that low. Compared to the previous growth, at least last year, there is a slight decrease this year. You can see it from the demands of the property in Nashville. The demands are still higher than the inventory rate of the property in the Nashville real estate market. So, it is still in a safer area.
According to WalletHub, Nashville is also still one of the 10 best places that people want for their house location. The ranking released by WalletHub is based on various factors, such as real estate market activity, property values growth, and local economic growth. The job availability and low unemployment rate are also the other reasons why this city still holds a promising future even with changes in its real estate market.
Other than that, the status of Nashville as the capital city of Tennessee also is the reason why many people still have the interest to live in this city. Business development is also moving at a high-speed rate. Therefore, we still believe that Nashville’s growth in real estate is still promising.
From the information we have here, we can see that there are many things that we can learn about the real estate market in Nashville by looking at several factors. This article will help you to find out more about those factors. So, let’s start!
Nashville Population Growth
The real estate market is always related to the people who live in a certain area. Nashville is no different. Therefore, the first thing you should know is the population status of Nashville. How many people that is currently living there? The potential growth of the population in Nashville is also necessary to determine the real market condition. So, to help you learn more about that, here, we already have the information that you need.
According to the U.S. Census Bureau, Nashville is ranked 20th in the fastest-growing metropolitan area in the United States. Looking at the last decade, the population growth reached 15% compared to 2010. As of today, the population of Nashville is 1,294,000. It increases by 1.73% compared to 2021.
Other than the Nashville metro population, the area close to this city also experiences significant growth. For example, Trousdale, Williamson, and Rutherford counties’ populations increase by more than 30% compared to the last decade. So, what can we see from this situation?
The high population growth rate in Nashville and the surrounding area shows many people still move in and want to live in Nashville. It shows that this city has many things that can attract visitors to move in. That means the growth of the local economy and business will also be affected by this growth. More people mean more customers for local businesses. That helps local businesses to grow.
Furthermore, more people that move into Nashville also mean the demand for housing will increase as well. More demands for housing will help the real estate market to keep active even in a difficult period, such as the pandemic last year. This situation also could affect the forecast of the real estate market growth in the future. Most likely, it will be much better, even if the experience slightly slows down.
Nashville Real Estate Market
What is the real condition of the real estate market in Nashville? According to PricewaterhouseCoopers, this city is placed as the city with the most prospect of real estate growth in 2022. It tells us that even though it experienced a slow down compared to last year, this year there is a huge chance of rebounding and even higher than before.
The Real Estate Report even calls Nashville a supernova city in its Emerging Trends category. So, the chance of the economy and population booming is there. With this potential, there will be a possibility that the housing price will also increase.
However, what we said above is something that will happen in the future. Today, the housing price in Nashville is still affordable. Combined with high demand and promising population growth, it is the best time for the investor to start their move. So, if you also want to start property investment in Nashville, you should do it this year.
Furthermore, there are also many factors, including Nashville demographics that become the best sign of the investing period you can find. Here are some of them.
- According to Zillow, the housing value in Nashville is quite high, which is at $386,553 in November 2021. Compared to the previous year, the Zillow Home Value Index (ZHVI) for Nashville shows a significant increase, which is 22.3% for the past year.
- Zillow also shows a promising growth trend by looking at the growth history for the past 5 years. It shows that Nashville’s housing value has increased by almost 81%.
- The availability of property is for 29 days. We got this data from the Greater Nashville Realtors. It also shows that there are still many supplies for the potentially high demand for housing in the future.
How about the price of the house and property in Nashville? Even though we said that the prices for Nashville houses are still affordable today, we can say that they could increase anytime. With the rising trend these days, the median sales price for a home in this city reaches around $429,900 by November 2021. According to Realtor.com, the median listing price is $400,000.
Compared to the national median price for a single-family home, it is much higher. The average median price for the U.S. is $374,900. From this number, we can see that the value of a house in Nashville is higher. Therefore, if you own a house in this area, there is the possibility that you will get more profit in the future.
If we calculate and predict the new median prices with the year-by-year change in nashville real estate market, the possibility is that the sales price in November 2022 is high. Therefore, once again, we suggest you make a fast move to invest if you are interested in Nashville property.
To invest, you also should know which area has the best value or most affordable prices. According to Realtor.com, two areas match that category. For the most expensive property, you can try West Meade. The median price of a single-family home in this area is $850,000, double the median price in Nashville.
It might be expensive. But, West Meade could be the best choice to invest in property. Furthermore, the development in this area is also really fast. We can say that this area has the busiest real estate market activity.
As for the most affordable property, you can try Nashboro Village. The median price for this area is only $265,000. With this amount, you can already get a proper and comfortable living place for yourself and your family. However, if you plan to rent your house, you might choose the downtown area, where the demand for rented housing is the highest.
Which downtown area is perfect for renting out your property? The answer is the Cumberland River area. According to Tennessean.com, this area has high rented house demand because many of the commercial and property in this area has been changed into commercial buildings and business establishments.
Cost of Living in Nashville
We also can’t forget the living cost to live comfortably in Nashville. The living cost is necessary because it will show you the financial capability of the people who live in this city. If we match it with the median price of Nashville, TN real estate, we can grasp the growth of the real estate market in Nashville.
According to GoBankingRates.com, the annual income you should make to live comfortably in Nashville is $80,548. Even though the price of the house in this area is considered affordable, especially when you see it from the house value perspective, Nashville is still the priciest city to live in.
One of many reasons why you need a lot of money to live in Nashville is the city’s development. Tennessean.com explained the development of the tourism sector and infrastructure. It boosts the cost of living in this area by 15% compared to last year.
We also can see it from the average rent in Nashville. According to a study by Zumper, in December 2021, you need at least $1,985 per month to rent a 3-bedroom property. This kind of property is a perfect choice for a single-family. And, that’s only for the property rent. If you calculate the other living cost, it can easily triple that number.
Furthermore, there is also a trend of an increase of 10% in year-over-year rent fees in Nashville. So, we can say that the number could still increase along with the pace of Nashville population growth. And, with the booming forecast, we can expect more numbers on that living cost and renting fee starting from next year.
If you want to get affordable rent, you can choose a certain area in Nashville. According to RENTCafé, the most affordable area is Hadley Park, Village By The Creek, and Glengarry. The average renting fee for those areas is $1,067 per month.
However, if you don’t mind spending more on the more comfortable and luxurious property to rent, there is Belmont-Hillsboro and Woodland in Waverly. The renting fee for a single-family home in this area is $3,825 per month. But, you can get one of the best properties in this area.
Nashville Real Estate Market Forecast 2022
Based on Zillow Home Value Index and the latest trend, we can give nothing but good Nashville real estate news for you who want to buy property for investment. This year the trend is increasing. Zillow even predicts that the value can rise in double-digits this year. It is unstoppable.
Even if you see the current price is still low, the new higher price will emerge starting in 2023. So, it would be better if you start earlier, as early as 2022. Otherwise, you will miss a chance to get a high-quality property at the most affordable price.
Pros & Cons
- Currently, Nashville has affordable housing prices for investment,
- The booming in population and development provides the best opportunity to get a property with higher value,
- High supply that is available for whole months can provide the demands of people who live in Nashville.
- High living cost
Nashville Real Estate Market FAQs
- Will the Nashville real estate market slow down?
Currently, the real estate market shows a slowing down tendency. However, the forecast shows that starting from next year, the growth will be unstoppable.
- Is it worth investing in property in Nashville?
With the development and population growth, you will have a higher chance to get better property value growth in the future.
- Should I buy or rent property in Nashville?
With its reputation as the top real estate market, buying a property is the best choice. The property value will keep increasing, and you can get profit from that.
- Will the price of housing in Nashville go down?
Not now. The trend shows the value of housing in Nashville keeps increasing, which also affects its price. However, the construction and housing development accelerate today, which adds more property supply to the market. With more supply, there is a chance that the price could go down in the future.
The real estate market in Nashville might show a bit slowing down in early 2022. However, with this city’s capability, development, and attractiveness, you can expect a more active market for property in late 2022 and next year. Therefore, we can only say that Nashville real estate market is going in the right direction.