Real Estate Investing Blog

Welcome!  |  Home   
Real Estate Investment Property

Your Premier Source for Turnkey Cash-Flow Investment Property

  "Live Where You Want.  Invest Where it Makes Sense!" ™

Nashville Housing Market 2019: Home Prices & Trends

How is The Nashville Real Estate Market 2019?

Nashville is one of the hottest real estate markets in the country today. The Nashville real estate boom began about 10 years ago and the investors expect these trends to continue in 2019 and foreseeable future, making Nashville one of the most desirable real estate markets in the country. Nashville, Tennessee is famous for the Grand Ole Opry, the recreation of the Parthenon, and country music.

It is best known as a tourist attraction in middle America. It should be recognized for a number of other reasons. The Nashville real estate market was good for sellers in 2018 due to the rising prices, and it was considered one of the hottest housing markets in the US.

If you are a real estate investor, Nashville properties have a track record of being one of the best long term real estate investments in the U.S. Based on the last twelve months, real estate investors based in Nashville have found good returns on their investment. Nashville real estate appreciation rates in the latest quarter were at 1.31%.

Nashville real estate market

Original Photo via Pixabay

In 2019, it is expected that the Nashville real estate market will improve in favor of buyers as the inventory has started to increase slowly. The property appreciation rate in Nashville, which was quite high for the past few years, has now started to slow down to favor buyers.

This shift is becoming a good sign for buyers looking to invest in Nashville real estate in 2019 and 2020. We’ll give you an overview of the Nashville real estate market trends in 2019 before we share 10 reasons to invest in the Nashville investment properties.

Nashville Real Estate Market Forecasts 2019 & 2020

Nashville itself is home to just over six hundred thousand people. That alone makes it the 24th most populous city in the country. If you count semi-independent parts of Davidson County , then the Nashville real estate market is home to about 700,000 people. The Nashville metropolitan area contains more than two million people. Many of those live in Davidson and Murfreesboro.

The median home value in Nashville is $262,500 on Zillow. Nashville home values have gone up 3.3% over the past year and Zillow’s Nashville real estate market prediction is that the prices will rise 0.2% by May 2020. The median list price per square foot in Nashville is $193, which is higher than the Nashville-Davidson–Murfreesboro–Franklin Metro average of $166.

Nashville Real Estate Market Forecast

Graph Credits: Zillow.com

The median price of homes currently listed in Nashville is $329,500 while the median price of homes that sold is $268,000. The median rent price in Nashville is $1,700, which is higher than the Nashville-Davidson–Murfreesboro–Franklin Metro median of $1,690.

Nashville Housing Market Forecast 2019 – 2021

The Nashville housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Nashville housing market trend prediction is 83%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Nashville, TN is 83% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.

Check this page each quarter for updates to the Nashville, Tennessee Real Estate Forecast.

Nashville Real Estate Market Trends

Nashville real estate market trends indicate a decrease of $4,900 (-2%) in median home sales and a 2% rise in median rent per month over the past year. The average price per square foot for this same period rose to $215, up from $204. Trulia has 1,903 resale and new homes for sale in Nashville, TN, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.

Nashville Real Estate Market Trends

Graph Credits: Trulia.com

The median sales price for homes in Nashville for Mar 20 to Jun 19 was $315,000 based on 1,997 home sales. Average price per square foot for Nashville was $215, an increase of 5% compared to the same period last year. The median rent per month for apartments in Nashville for May 24 to Jun 24 was $1,800.

As per the real estate company named Redfin, the Nashville housing market is somewhat competitive. Homes in Nashville receive 1 offers on average and sell in around 51 days. The average sale price of a home in Nashville was $310K last month, up 3.3% since last year. The average sale price per square foot in Nashville is $184, up 5.7% since last year. Homes typically receive 1 offer. Homes for sale in the Nashville housing market sell for about 1% below list price and go pending in around 51 days. Hot homes for sale in Nashville, TN can sell for around list price and go pending in around 30 days.

Nashville Housing Market Statistics

Median Sales Price $315,000 (On Trulia)
Price Per Square Ft $215
Median Rent Per Month $1,800
Median Household Income $45,038
Home Owners 57%
Single Residents 43%
Median Age 36
College Educated 36%
Transportation 96% people commute by car, public transport available

There are 2,935 homes for sale in Nashville, TN ranging from $10 to $32.5M on Realtor.com. 314 of which were newly listed within the last week. Additionally, there are 748 Nashville rental properties up to $18,000 per month. The median list price of homes in Nashville, TN was $365,000 in May 2019, trending up 1.4% year-over-year. The median listing price per square foot was $214.

Nashville Housing Market Trends

Graph Credits: Realtor.com

The median list price in Nashville, TN is $428,599 on Movoto.com. The median list price in Nashville was less than 1% change from June to July. Nashville’s home resale inventories is 1,918, which increased 0 percent since June 2019. The median list price per square foot in Nashville is $225. June 2019 was $226. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in July.

Nashville Real Estate Market Trend

Graph Credits: Movoto.com

Nashville, TN Single Family And Multi-Family Homes

Nashville real estate market

Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.

As per the real estate company called Neigborhoodscout.com, the median house price in Nashville, TN is $239,003, which indicates that home prices in Nashville are near the national average for all cities and towns. Single family detached homes are the single most common housing type in Nashville, accounting for 52.23% of the city’s housing units.

Other types of housing that are prevalent in Nashville include large apartment complexes or high rise apartments ( 29.96%), duplexes, homes converted to apartments or other small apartment buildings ( 9.15%), and a few row houses and other attached homes ( 7.18%).

People in Nashville primarily live in small (one, two or no bedroom) single-family detached homes. Nashville has a mixture of owner-occupied and renter-occupied housing.

Currently, there are 2,652 single family homes for sale in Nashville, TN on Zillow. Additionally, there are 583 single family homes for rent in Nashville, TNUnder potential listings, there are about 4 Foreclosed and 316 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).

Nashville, TN Foreclosures And Bank Owned Homes 2019

According to Zillow, in Nashville 0.1 homes are foreclosed (per 10,000). This is lower than the Nashville-Davidson–Murfreesboro–Franklin Metro value of 0.2 and also lower than the national value of 1.2. The percent of delinquent mortgages in Nashville is 0.6%, which is lower than the national value of 1.1%.

With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.

The percent of Nashville homeowners underwater on their mortgage is 5.4%, which is higher than Nashville-Davidson–Murfreesboro–Franklin Metro at 5.1%.

Foreclosures in Nashville 67
Homes for Sale 2,184 (RealtyTrac)
Recently Sold 6561
Median List Price $335,500 (3% ⇑ vs Apr 2018)

There are currently 67 properties in Nashville, TN that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 2,184. In May 2019, the number of properties that received a foreclosure filing in Nashville, TN was 12% higher than the previous month and 32% lower than the same time last year.

Home sales for April 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Nashville was $0. The median sales price of a foreclosure home in Nashville was $0, or 0% higher than non-distressed home sales.

Nashville Home Prices And Real Estate Appreciation 2019

Nashville real estate appreciated 63.08% over the last ten years, which is an average annual home appreciation rate of 5.01%, putting Nashville in the top 10% nationally for real estate appreciation.

Nashville real estate appreciation rates are so strong in that despite a nationwide downturn in the housing market, Nashville real estate has continued to appreciate in value faster than most communities. In the latest twelve months,

Nashville real estate appreciation rates continue to be some of the highest in the nation, at 8.20%, which is higher than appreciation rates in 83.37% of the cities and towns in the nation.

The above statistics on real estate appreciation in Nashville, TN were taken from NeighborhoodScout.com. You can visit their page for more information. Relative to Tennessee, their data shows that Nashville’s latest annual real estate appreciation rate is higher than 60% of the other cities and towns in Tennessee.

Best Places To Buy Real Estate In Nashville, Tennessee

If you are looking to buy real estate in Nashville, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Nashville real estate and you should be able flip it for a lump sum profit.

When looking to invest in Nashville, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Nashville investment property should be low. The neighborhoods in Nashville must be safe to live in and should have a low crime rate.

The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.

Currently, there are 148 neighborhoods in Nashville. There are 206 schools in Nashville, TN. There are 74 elementary schools, 43 middle schools, 29 high schools and 60 private & charter schools

Some of the best neighborhoods in Nashville, Tennessee are Green Hills, Inglewood and Urbandale Nations. Belle Meade has a median listing price of $1.4M, making it the most expensive neighborhood. Talbot’s Corner is the most affordable neighborhood in Nashville, with a median listing price of $269.9K.

Here are the 10 best neighborhoods in Nashville to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).

1

 Shelby Ave / S 10th St

2

 Gallatin Pike / Greenwood Ave

3

 S 16th St / Shelby Ave

4

 Eastland Ave / N 16th St

5

 N 9th St / Mansfield Ave

6

 Creighton Ave / Riverside Dr

7

 Tennessee State U / Ed Temple Blvd

8

 Charlotte Ave / 37th Ave N

9

 Charlotte Ave / 46th Ave N

10

 West Nashville

Should You Invest In Nashville Real Estate In 2019?

Is it worth buying a house in Nashville, TN? Investing in real estate is touted as a great way to become wealthy.  Many real estate investors have asked themselves if buying a property in Nashville is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.

We have already discussed the Nashville housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Nashville but we have collected ten evidence based positive things for those who are keen to invest in the Nashville real estate in 2019.

The Nashville housing market is booming because of high demand, but that isn’t quite reason enough to invest in this real estate market. However, there are a number of long term trends that make the Nashville market a good place to invest in real estate without fear of a boom and bust like what hit Arizona during the Great Recession we’re just now recovering from.

Let’s take a look at the number of positive things going on in the Nashville real estate market which can help investors who are keen to buy an investment property in this city.

1. A Strong Economy And Job Opportunities

In early 2018, a Quartz article joked that Nashville could give up the nickname Music City and be called Job City. Nashville’s claim to the title was having the lowest unemployment rate of any metropolitan area with more than a million people.

Nashville real estate market demand will remain strong as long as people want to move here for work, and unlike some areas, they can actually find it here.

The Nashville area economy includes thriving technology, service, education, health, and manufacturing sectors. Financial enterprises have also discovered the benefits of doing business in Nashville, giving abundant employment prospects to bankers, accountants, and budget analysts.

While the tourism industry is thriving, white collar jobs are expanding rapidly, too. Almost anyone with a marketable skill can find a good-paying job in Nashville.

This trend is expected to continue for at least the next 10 years, with opportunities especially robust for healthcare, IT, and design/media specialists. Average incomes on the city’s west side are higher than in areas east of downtown.

2. Strong Demographic Trends In Nashville

The average age of Nashville residents is around 33, much younger than the national average of 40. This means the Nashville real estate market contains a larger than average number of young families, and given the strong job market, these adults and their children will contribute to housing demand for years to come.

3. Quality of Life Attracts People of All Ages

Nashville was ranked the fastest growing large metropolitan area in the United States in 2017. This is in no small part due to its high rankings in various quality of life surveys such as U.S. News and World Report.

That publication ranked Nashville the eleventh best place to live in the country, giving it high marks on desirability and value. It was also ranked 35th in their list of best places to retire.

This means many are choosing to move here because of quality of life whether or not they’re coming for work. Today, Nashville is a hot relocation destination with a thriving economy, continuous population growth, and a diverse, ever-growing services base.

Consumers who act aggressively to break into the local real estate market should enjoy both a high quality of life and rising home values for the foreseeable future.

4. Known Redevelopment Opportunities

Redevelopment can be hit and miss, since you can’t be sure a waterfront area or community slated for revitalization actually goes up in value.

One benefit of the Nashville housing market is that there is known areas of redevelopment where returns are nearly certain. The area around the future professional sports stadium comes to mind. East Nashville is gentrifying, as well.

5. A Large Student Population

The Nashville housing market presents a prime opportunity for real estate investors who would like to cater to students. This is partially due to the fact it is the capital of the state, and it is partially due to the fact that it is simply the largest city in the state.

Local universities include but are not limited to Tennessee State University, Lipscomb University, Belmont University, Aquinas College, Fisk University, and Vanderbilt University.

American Baptist College, Trevecca Nazarene University, Meharry College, Welch College and Nashville State Community College are also located here.

If you want to invest in the suburban Nashville housing market, Middle Tennessee State University is located in Murfreesboro. The presence of several colleges and universities, along with both private and public secondary schools, presents rich possibilities to academic professionals.

6. The Tourism Related Rental Market

The Nashville housing market provides two different tourism-related rental markets. One is, of course, renting homes to tourists who are more likely to be families and retired couples than swinging singles.

Another possibility is renting to young adults who work in the tourism industry themselves. Just over a third of the market rents, a figure similar to the national average.

This means that a sudden decline in tourism isn’t going to hurt the Nashville housing market much. The city is currently arguing over limits for AirBnB rentals for non-residents, but no restriction on this are in place yet or the foreseeable future.

7. Affordability

The median home price in Nashville is around $240,000. You can buy two moderately large single family homes here for the price of a cheap condo in California, and you can buy half a dozen rental properties in the Nashville real estate market for the price of one good house in New York City.

Nor will the area see a building boom that causes real estate to go down dramatically in value, since rentals had a vacancy rate of around 4% in 2016. Some new housing stock may come onto the market, but not enough to hurt the value of existing homes.

8. Stability

We’ve touched on the subject of rental market stability. Nashville has high employment rates and low vacancy rates, but none of those numbers are enough to throw the market into overdrive, whether it leads to a glut of supply to meet high demand or a boom-bust cycle.

The Nashville Business Journal ranked Nashville the most stable housing market in the state in 2018. The city’s relatively slow permitting process actually slows down construction of new units, keeping home prices stable and high.

9. It Is Landlord Friendly

Tennessee like much of the south is landlord friendly. Landlords in the Nashville real estate market don’t have to have a written lease unless the rental agreement is longer than three years, though that’s always recommended. There is a limited payment grace period.

Receipts aren’t required for rent and deposit payments, though again, that would be wise. Interest isn’t due on deposits. You can charge late fees but have to specify them in the lease. The only minor issue is that you have to have a rental license before you can be a landlord.

10. The Good Return on the Investment

Interestingly, the average annual salary is about $46,000, leading many here to rent instead of buy. However, the rental market isn’t so hot that it is guaranteed to collapse.

That is why median rent hovers around $900-$1000 a month, providing decent returns to landlords who don’t over leverage but without worrying about a condo boom to cash in on rental demand diminishing profits over the long-term.

The fact that rents in the Nashville real estate market are almost $200 per month greater than the Tennessee average is a strong reason to buy real estate here than elsewhere in the state. And know that rental rates for large apartments and condos are even higher – commanding rents in the $1500-2000 range.

Nashville Real Estate Investment

Maybe you have done a bit of real estate investing in Nashville, TN but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.

Therefore, finding a good Nashville real estate investment opportunity would be a key to your success. in If you invest wisely in Nashville real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.

The less expensive the Nashville investment property is, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.

Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Nashville, you should focus on neighborhoods with relatively high population density and employment growth.

Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.

You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Nashville, TN. 

Don’t let the country-western touristy image dissuade you from investing in Nashville, TN. There are a number of points in favor of the Nashville real estate market if you are looking for a solid opportunity.

One of the best features of the Nashville real estate market is the median property price in the city, which is considered more affordable than most of the other top markets for investing in real estate in the U.S.

Although the Nashville real estate market is expected to move a little more slowly in 2018, which would make things better for buyers, the inventory will remain limited, which means that Nashville will remain among the fastest-moving housing markets in the U.S.

Also, as the mortgage rates in Nashville remain at record lows, it makes buying a property more affordable now than it was in the previous years.

Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Nashville, TN is your ability to find great real estate investments in that area.

According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.

We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.

Nashville real estate investment

The aim of this article was to educate investors who are keen to invest in Nashville real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.

Other Best Places To Invest in Real Estate in 2019

Another housing market to go for diversifying your investments is the Austin real estate market 2019. The Austin housing market may be one of the more expensive ones in the state of Texas, but it stands out for its large rental market and high rental rates.

It is an excellent place to invest in real estate in the Lone Star State. Homes in Austin are 23% cheaper than the national average. It may be the second most expensive housing market in the state with a median home price of around $350,000, but it is still far cheaper than California or New York. Buy up condos or townhomes, and you’ll be able to see a sizable return on the investment.

Similarly, the Salt Lake City is another great market for investing in real estate for your retirement. The Salt Lake City real estate market 2019 is booming because of an ideal combination of business growth triggering in-migration and strong native population growth.

Downtown Salt Lake City properties near the Mormon Temple command a premium, but that isn’t the only upscale market in the area. Park City and the northern side of Oakley, too, have properties that cost on average well over a million dollars.

As you move up Highway 80 toward Hoytsville and Wanship, properties routinely cost more than a million dollars despite the hour commute to Salt Lake City.

Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here. 

One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.


*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References:

Stadium / redevelopment
https://www.tennessean.com/story/sports/2018/09/05/nashville-mls-stadium-pro-soccer-team/1200230002/
https://www.theringer.com/features/2017/11/21/16678002/airbnb-nashville

Employment
https://qz.com/1251382/nashville-tennessee-has-the-uss-lowest-unemployment

Demographics
https://suburbanstats.org/population/tennessee/how-many-people-live-in-nashville
https://en.wikipedia.org/wiki/Nashville,_Tennessee

Landlord friendly                                                                                            https://www.avail.co/education/laws/tennessee-landlord-tenant-laws

Quality of life
https://www.nashvillechamber.com
https://realestate.usnews.com/places/tennessee/nashville

Home Prices / Rental Prices
https://realestate.usnews.com/places/tennessee/nashville
https://www.deptofnumbers.com/rent/tennessee/nashville
https://www.trulia.com/real_estate/Nashville-Tennessee

Stability                                                                                                                            https://thinkrealty.com/nashville-housing-market-room-grow
https://www.bizjournals.com/nashville/news/2018/05/23/report-card-tennessee-best-places-to-buy-a-house.html

Housing Market Data, Trends & Statistics
https://www.zillow.com/Nashville-tn/home-values
https://www.littlebighomes.com/real-estate-nashville.html
https://www.trulia.com/real_estate/Nashville-Tennessee
https://www.movoto.com/nashville-tn/market-trends
https://www.redfin.com/city/13415/TN/Nashville/housing-market
https://www.realtor.com/realestateandhomes-search/Nashville_TN/overview
https://www.neighborhoodscout.com/tn/nashville/real-estate
https://www.realtytrac.com/statsandtrends/tn/davidson-county/nashville


Add Your Comment: