The Nashville housing market has been experiencing significant growth and activity in recent months. The housing market report for June 2023 demonstrates a robust and dynamic real estate market. With many closings, a diverse range of property types, and varying price points, Nashville continues to be an attractive destination for homebuyers.
The affordability of condominiums and the available inventory contribute to the market's appeal, while the number of pending and the low average days on the market indicate a strong demand and a competitive landscape. As we move forward, it will be interesting to observe how these trends evolve and if the Nashville housing market will continue its upward trajectory.
Also Read: Tennessee Real Estate Appreciation & Forecast
Nashville Housing Market Trends
The Greater Nashville REALTORS® has released the housing market data for the Nashville Metropolitan Area. In August 2023, the Nashville housing market remained active and dynamic, with significant numbers in various key aspects. Let's delve into the statistics to get a comprehensive understanding of the trends.
Closings
In August, a total of 3,305 closings were recorded in the Nashville housing market, indicating a steady level of real estate transactions during this period.
Median Price
The median price for properties in Nashville during August showed a robust performance. For residential properties, the median price stood at $476,559, highlighting a favorable market for sellers.
Condominiums also saw a healthy median price of $350,000, appealing to potential buyers interested in this housing category.
Inventory
The inventory levels in August 2023 depicted the variety in the Nashville housing market. The total inventory counted 9,853 properties, catering to the diverse needs of homebuyers.
The inventory was broken down into different categories:
- Residential: 6,801 properties
- Condominium: 1,110 properties
- Multi Family: 82 properties
- Farm/Land/Lots: 1,860 properties
Pendings and Days on Market
Pendings: During August, there were 2,607 pending transactions, reflecting a positive outlook for the Nashville housing market as buyers showed keen interest in available properties.
Days on Market: The average days on market stood at 42, indicating a reasonably brisk pace of sales during this period.
Thus, the Nashville housing market displayed a strong performance. Key indicators include a total of 3,305 closings, showcasing a healthy level of real estate transactions. The median prices were notable, with $476,559 for residential properties and $350,000 for condominiums, indicating favorable conditions for sellers.
The inventory stood at 9,853 properties, offering diverse choices for buyers. With 2,607 pending transactions, the market showed active buyer interest, supported by an average of 42 days on market. Overall, the Nashville housing market in August 2023 demonstrated vitality and stability, benefiting both buyers and sellers.
Nashville Housing Market Forecast 2023-2024
What are the Nashville real estate market predictions for 2023 and 2024? Property values across Nashville and Davidson County are expected to rise over the next twelve months. We have seen people move from big towns to suburbs throughout the country. Nashville too has seen an influx of buyers coming from larger markets like Seattle, New York, and California. Another factor in the increase in out-of-state homebuyers is that Tennessee is one of only seven states that does not impose an income tax and one of two that doesn’t collect tax on earned income.
This has multiplied the demand for housing. High demand and low inventory are causing home prices in Nashville to rise rapidly. As we delve into the Nashville housing market forecast, it's essential to consider the latest data and projections provided by Zillow. The Nashville-Davidson–Murfreesboro–Franklin area has been experiencing a dynamic real estate landscape, and understanding the key takeaways and forecasts can help buyers, sellers, and investors make informed decisions.
Current Market Snapshot
As of July 31, 2023, Zillow reports that the average home value in the Nashville-Davidson–Murfreesboro–Franklin area is $434,130. This represents a slight decrease of 2.2% over the past year. Additionally, homes in this area are going pending in approximately 12 days, indicating a fast-paced market.
Market Forecast
Looking ahead, Zillow provides a 1-year market forecast for July 31, 2023, which suggests a growth rate of 6.7%. This forecast indicates a positive outlook for the Nashville housing market in the coming year, with the potential for home values to appreciate.
Market Metrics
Several key market metrics provide further insights into the current dynamics of the Nashville housing market:
- Median Sale to List Ratio (June 30, 2023): The median sale to list ratio is reported as 0.995, indicating that homes are, on average, selling very close to their list prices.
- Percent of Sales Over List Price (June 30, 2023): Approximately 24.0% of sales are going over the list price, suggesting competitive bidding and strong buyer demand.
- Percent of Sales Under List Price (June 30, 2023): Around 52.3% of sales are occurring under the list price, providing opportunities for buyers to find properties below the asking price.
- Median Days to Pending (July 31, 2023): The median time it takes for a property to go pending is 12 days, emphasizing the quick pace of the market.
Addressing Common Questions
Now, let's address some common questions that individuals often have when considering the Nashville housing market:
Are Housing Prices Dropping in Nashville?
While Zillow's data indicates a 2.2% decrease in average home value over the past year, it's important to note that the market forecast for the coming year suggests a 6.7% growth rate. This indicates that any recent decline may be part of a natural market fluctuation, and the overall outlook is positive for home values in Nashville.
Is Now a Good Time to Buy a House in Nashville?
The decision to buy a house depends on various factors, including your personal financial situation, goals, and long-term plans. With a 1-year market forecast showing potential appreciation and a median sale to list ratio close to 1, Nashville could be a favorable market for buyers. However, it's essential to consult with a local real estate expert who can provide tailored advice based on your specific circumstances.
In conclusion, the Nashville housing market is dynamic, with a positive market forecast and various opportunities for both buyers and sellers. Staying informed and seeking guidance from real estate professionals will be crucial for making informed decisions in this competitive market.

Here are the ten neighborhoods in Nashville having the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com.
- Maxwell Heights
- Rolling Acres / Lockeland Springs
- East Nashville
- Greenwood / Lincoln College of Technology Nashville
- Shelby Hills
- East Hill
- North Nashville
- Germantown
- Edgehill / Historic Waverly
- Fisk Meharry / Fisk University
Nashville Real Estate Investment Outlook
Is Nashville a Good Place For Real Estate Investment? Many real estate investors have asked themselves if buying a property in Nashville is a good investment. You need to drill deeper into local trends if you want to know what the market holds for real estate investors and buyers. Nashville is a minimally walkable city in Davidson County with a population of approximately 601,201 people.
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. 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. Nashville has a mixture of owner-occupied and renter-occupied housing units. According to Neighborhoodscout.com, a real estate data provider, one and two-bedroom single-family detached homes are the most common housing units in Nashville. Other types of housing that are prevalent in Nashville include large apartment complexes, duplexes, rowhouses, and homes converted to apartments.
The Nashville housing market has been good for sellers in the past years due to the rising prices, and it is considered one of the hottest housing markets in the U.S. The Nashville real estate boom began about 10 years ago and investors expect these trends to continue in 2021 and the foreseeable future, making Nashville one of the most desirable housing markets in the country.
Several long-term trends make the Nashville market a good place to invest in real estate without any fear of boom and bust like what hit Arizona during the Great Recession. In 2020, Nashville came in at No. 4 in the country for expected activity and price appreciation, in comparison to 25 large markets around the country, according to a survey published by Zillow.
Nashville was the only market analyzed in which no panelists said they expected home values to fall in 2020. The home values (nationally) were expected to grow by 2.8% in 2020. 59% of panelists expected Nashville home values to appreciate faster than their expected national rate of 2.8%. 31% of panelists expected Nashville home prices to appreciate slower than they do nationally while 10% of panelists expected them to grow about the same as they do nationally.
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. As the inventory remains limited, it means that Nashville will remain among the fastest-moving housing markets in the U.S. Also, as the mortgage rates remain at record lows, it makes buying a property more affordable now than it was in previous years.
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 find it here. The Nashville area economy includes thriving technology, service, education, health, and manufacturing sectors.
Notable job growth has occurred in the professional and business services, leisure and hospitality, manufacturing, and mining, logging, and construction 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 in Nashville 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 17th best place to live in America in 2020-2021 — giving it high marks on desirability and value.
It was also ranked 12th in its list of best places to retire and 23rd in the fastest-growing places. This means many are choosing to move here because of the quality of life whether or not they’re coming for work. Nashville is also known as the Country Music Capital of the World and it has unique museums and architecture.
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.
Demographics of the Nashville:
- College-educated: 40%
- Homeowners: 65.6%
- Married: 43%
4. Known Redevelopment Opportunities
Redevelopment can be hit and miss since you can’t be sure a waterfront area or community slated for revitalization goes up in value. One benefit of the Nashville housing market is that there are 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 because 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 restrictions on this are in place yet or in the foreseeable future.
7. Affordable Nashville Real Estate
The typical home price in Nashville is around $457,360 (Zillow). Nashville is relatively affordable compared to other major U.S. metro areas, though the housing market has become increasingly competitive. 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. The area has seen an increase in its population, as well as a rise in home values. The Southern Suburbs submarket, which includes the cities of Murfreesboro and Franklin, is the fastest-growing submarket in Nashville Metro Area. Since Tennessee is one of the few states that doesn't tax wages, residents can keep more of their income, though there is a 6% hall tax on investment interest and dividends.
The state Legislature agreed in 2016 to start phasing out the Hall income tax, with its total elimination beginning on Jan 1, 2021. This is considered among the most important tax reforms in the history of Tennessee. From a 6 percent tax rate on investment income, the levy was to be reduced by 1 percent each year through 2020. For the year that started Jan. 1, the rate is 2 percent. Hence, Tennessee is on its way to becoming a truly no-income-tax state, to join seven other states — Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.
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 as the most stable housing market in the state in 2018. The city’s relatively slow permitting process slows down the 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 $62,000 (source: Payscale.com), leading many here to rent instead of buy. According to RENTCafe, 46% of the households in Nashville, TN are renter-occupied while 53% are owner-occupied. However, the rental market isn’t so hot that it is guaranteed to collapse anytime soon. Renter household growth has outpaced the construction of rental units and the conversion of single-family homes to rental units since 2010.
That is why average rent hovers around $1,400 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. Also, 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. About 25% of the apartments fall in this price range whereas 47% fall in the range of $1,001-$1,500.
As of October 2023, the average rent for a 1-bedroom apartment in Nashville, TN is currently $1,750. This is a 1% decrease compared to the previous year. Over the past month, the average rent for a studio apartment in Nashville remained flat. The average rent for a 1-bedroom apartment decreased by -1% to $1,750, and the average rent for a 2-bedroom apartment remained flat.
- Two-bedroom apartments in Nashville rent for $1,975 a month on average (a 10% increase from last year).
- Three-bedroom apartment rents average $2,370 (a 5% increase from last year).
- Four-bedroom apartment rents average $3,000 (a 5% increase from last year).
The most affordable neighborhoods where the asking prices are below the average Nashville rent of $1,428/mo are:
- West Meade where the average rent goes for $1,628/mo.
- Hickory Hills where the average rent goes for $1,650/mo.
- Bellshire Terrace where the average rent goes for $1,675/mo.
Other famous neighborhoods in Nashville, Tennessee are Green Hills, Inglewood, Urbandale Nations, Nolensville, Joelton, Downtown Nashville, Crieve Hall, Hermitage Estates, Hermitage Hills, Donelson-Hermitage-Old Hickory, Madison, Sylvan Park, Antioch-Priest Lake, Old Hickory Village, West Nashville, Green Hills, East Nashville, and Antioch Park.
The Sunnyside neighborhood is one such neighborhood that has grown massively since its founding. It has over 800 homes with historic or architectural significance alone, which should appeal to many homebuyers. Home prices have dropped by 23.6% since last year for those looking for a deal in this neighborhood. The average sale price per square foot in Sunnyside is $270, down 23.1% since last year. Redfin says that the homes sell for 2.6% under their list price. Average Price: $717K. Buyers who can afford to buy at this price point should make a move as they hold the upper hand in price negotiations.
Downtown Nashville is another dynamic, urban neighborhood that is the hub of the entertainment and nightlife that defines Music City. It has a lot of great apartment options for rent, but you can also consider buying a property that will keep you close to work, public transit, and all the entertainment you can hope for. It is also a buyer's market and much cheaper than Sunnyside. A great market for buyers because it is not very competitive. According to Redfin, the average sale price of a home in Downtown Nashville was $450K last month, down 31.8% since last year. The average sale price per square foot in Downtown Nashville is $566, down 3.7% since last year. Typically homes in this neighborhood receive 1 offer on average and sell in around 76.5 days. A high average DOM signals a weak market that favors buyers.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in the United States.
Consult with one of the investment counselors who can help build you a custom portfolio of Nashville investment properties. Depending upon the availability, we can help you to find “Cash-Flow Rental Properties” located in some of the neighborhoods in Nashville. Not just limited to Nashville or Tennessee but you can also invest in some of the hottest real estate markets for rental properties in the United States.
Another housing market to go for diversifying your investments is the Austin real estate market. 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, Salt Lake City is another great market for investing in real estate for your retirement. The Salt Lake City real estate market 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.
All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Nashville turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.
Let us know which real estate markets in the United States you consider best for real estate investing!
Remember, caveat emptor still applies when buying a property anywhere. Some of 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, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
References
Housing Market Data, Trends & Statistics
https://www.greaternashvillerealtors.org/pages/market-data-news/
https://www.zillow.com/Nashville-tn/home-values
https://www.deptofnumbers.com/rent/tennessee/nashville
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#description
https://www.msn.com/en-us/money/realestate/nashville-housing-market-trends-and-prices
https://www.tennessean.com/story/money/real-estate/2021/06/04/what-know-nashville-housing-market/5253078001/
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
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
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