Nashville, Tennessee has a lot to offer. It’s one of the most famous music destinations in the world, so much so that it has earned the nickname “Music City.” There is an endless array of entertainment options in Nashville, with no shortage of bars, clubs, and concert venues. In addition to its music scene and nightlife, Nashville offers plenty of outdoor recreation and natural beauty due largely to its forests and location on the banks of the Cumberland River. These attributes, along with Nashville’s bustling economy, has led to the city becoming an immensely popular relocation destination. New residents are arriving every day to the city of approximately 600,000 residents. The greater Nashville area grew by 19.1 percent from 2010 to 2020, while the city of Nashville has grown by about 11.2 percent. Nashville is a popular spot with millennials too, and is ranked 21st in the nation amongst cities that are luring new residents in the age bracket.
So, what can home buyers and real estate investors expect? In the past year, like many other more moderately priced cities, Nashville has lured a lot of new residents from pricier markets such as California, Seattle, and the northeast. With that influx, real estate has taken off in the past year. According to Zillow, the typical home in Nashville is now worth $340,329, up 11.9 percent year-over-year, and real estate has appreciated by 85 percent over the past decade.
For investors, Nashville offers a large and growing population of renters. The average age of Nashville residents is around 33, compared to the national average of 40. This younger demographic and the larger than average number of young families will likely contribute to the base of renters until they can afford to buy. Nashville also has a population of over 45,000 college students who are attending local universities including Tennessee State University, Lipscomb University, Belmont University, Aquinas College, Fisk University, and Vanderbilt University.
While occupancy in downtown Nashville apartments fell in 2020, they are becoming sought after once again, and the rents are reflecting that. In the first few months of 2021, downtown Nashville went from the city’s most underperforming neighborhood to its most in-demand for apartments. Downtown has the highest average rent at $1,929, according to the Greater Nashville Apartment Association. In the city’s least expensive neighborhood, Parkwood-Union Hill, rents average $1,060.
For those who are interested in purchasing a single-family house as their primary residence, they still have the option of being landlords. Nashville’s Metro Council has approved a measure to allow single-family homeowners in the city’s urban district to build smaller housing units on their lots. With a local government that’s friendly to investors as well as a thriving area economy and tons of fun things to do, Nashville is a smart place to consider buying.