Middle Tennessee is experiencing a real estate boom spurred by growth in the greater Nashville area. In fact, Nashville is one of the quickest-growing metro areas in the country. The high demand for any property type in the city has investors classifying it as a "supernova" subgroup.
Nashville is considered a "supernova" because its economic indicators are strong and growing. These include employment rates, population growth, consumer spending, and new construction in both downtown Nashville and the rest of Middle Tennessee.
The attractive housing market, rental appreciation, and economic growth offer Nashville investors the possibility of a high return on investment.
The Nashville area provides an attractive housing market for investors. The trend for closings in residential, condos, and multi-family homes shows consistent growth, making Nashville investment property of high value for investors. Median home prices have also increased steadily over that same time.
Several areas will stand out as excellent choices for real estate investment in any market. These include Green Hills, East Nashville, Antioch, and Brentwood in and around Nashville.
The local culture in Nashville urges investors to buy rental properties, including long-term and short-term rentals. For example, Nashville boasts over 10,000 Airbnb listings and has consistent short-term renters who provide rental income to owners and property managers.
The rental market remains strong due to Nashville's diverse economy and culture. From music to food to cutting-edge technology, Nashville retains a grip on the imaginations of those who associate the city with country music while forging ahead with futuristic medical and technological advances.
One of the critical indicators of a robust real estate market is the job growth in the area. In 2021, the Nashville-Davidson-Murfreesboro-Franklin metro area was rated number one in economic development for large metros.
Although Nashville has the name "Music City," the town has strong ties to the medical and technical industries. For example, Vanderbilt University Medical Center is a top employee along with other providers, making Nashville real estate attractive to physicians.
Nissan North America, General Motors, Amazon, and Bridgestone Americas Inc. are other large corporate employers in Nashville.
Unemployment for Tennessee typically hovers around 3%. The Nashville-Davidson-Murfreesboro area trends slightly less in the mid-to-upper 2% range. Along with continued population growth, Nashville has all of the indicators for a strong economy.
If trends continue, investing in Nashville real estate may be a reasonable consideration for developers and investors. Although ROI is never a guarantee, Nashville has the markings of an excellent investment.