The Nashville Real Estate Market: Stats & Trends for 2023
September 11, 2023
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The Nashville real estate market is witnessing significant growth, with a surge in demand from out-of-state buyers and record annual appreciation. WalletHub ranks Nashville among the top 10 places to buy a house due to its active real estate market, property value growth, and strong local economy. Factors like a booming job market and low unemployment have made Nashville a leading market for rent growth. As Tennessee's capital and most populous city, Nashville, historically significant in wars and a hub for transportation and manufacturing, is now predominantly recognized as "Music City" for its major role in the music industry. This article delves into the intricacies of the Nashville real estate market in 2022.
Nashville, along with its adjacent suburban regions, is experiencing unprecedented growth. The latest census data reveals that Nashville's population has surged by 15% since 2010. In comparison, the neighboring counties of Rutherford, Trousdale, and Williamson have each witnessed a population increase of over 30%.
- The Nashville metropolitan area was the 20th-fastest growing statistical area in the country since 2010, according to data released by the U.S. Census Bureau.
- The current metro area population of Nashville in 2023 is 1,315,000, a 1.62% increase from 2022, and is expected to grow by 13% over the next 10 years,
- Nashville is among the top cities where retirees are moving in 2023.
- Nashville Ranks in #1 U.S. City for an Affordable Wedding.
Nashville is a thriving city, with a diverse economy that includes healthcare, education, music, and tourism.
- WKRN News recently reported Nashville is the #1 ranked city for economic growth
- According to the US Bureau of Labor Statistics, the city has a low unemployment rate, just 2.8% as of April 2023, making it an attractive location for businesses and workers alike.
- Median Household Income in Nashville is $67K, +8.6% YoY increase
- The cost of living in Nashville is relatively lower than other major cities in the US, such as New York and San Francisco. This means that property prices are more affordable, making it easier to invest in real estate.
- According to CBRE’s 2021 Scoring Tech Talent Report, Nashville ranks first in millennial population growth in the U.S. among small tech markets, defined as cities with a tech labor pool of less than 50,000.
- Nashville ranked tenth among the small tech talent markets nationally with a labor pool of 35,190 tech workers, a 36.1 percent increase from 2015.
- According to the study here, Nashville ranks number 6 most popular vacation destinations in the country,
Key Employment Stats:
- The GDP of Nashville-Davidson-Murfreesboro-Franklin MSA has the second highest growth rate in the nation, with GDP growing at 12%.
- Employment growth in Nashville is 2.02% year-over-year while median household incomes grew by 6.6% over the same time period.
- Nashville MSA experienced job growth of 26% between 2010 and 2019, making the region the 2nd-fastest growing metro economy in the country.
- The unemployment rate in Nashville is 2.5% as of April 2022, according to the BLS.
- Nashville is the hottest job market in the country (Wall Street Journal) 2nd on the list of top cities where professionals are relocating and #2 in the nation for net inflow of tech workers (LinkedIn).
- One of the top cities for women in tech.
- Many corporate headquarter giants call the area home, including 5 Fortune 500 and 13 Fortune 1000 companies:
- Nissan North America,
- Bridgestone Americas,
- Mitsubishi Motors North America,
- Tractor Supply Company,
- Dollar General,
- There has been an influx of new companies, especially technology organizations, setting down roots in the market in the past year. This will drive more job opportunities and attract more tech talent in the years to come. Oracle is building a campus where the company is expected to bring 8,500 jobs to the city, with an average wage of six figures.
Colleges & Universities:
Nashville MSA is home to 20 accredited four-year, two-year, tech schools and postgraduate institutions including Vanderbilt University, Tennessee State University, Nashville State Community College, and Belmont University.
90.6% of the Nashville residents have a high school degree or higher, while 37.3% hold a bachelor’s degree or advanced degree.
Nearly 120,000 students attend the area’s colleges and universities, Major colleges and universities include:
- Vanderbilt University
- Belmont University
- Tennessee State University
- Lipscomb University
- Trevecca Nazarene University
- Meharry Medical College
- Fisk University
Strong Rental Market:
With a growing population and a strong economy, the rental market in Nashville is also strong. As of January 2023, four-bedroom apartment rents average $2,885 (a 15% increase from last year).
- The median price of a single-family home was $450,000, an increase from $425,000 in the previous year (+6% YoY)
- The rental vacancy rate is 5% https://www.rate.com/research/nashville-tn#population
Infrastructure and Transportation:
- Nashville International Airport (BNA), located only eight miles from downtown, averages 542 daily flights and provides service to more than 18 million passengers annually. BNA is the 27th largest airport in the U.S. in 2022 and served by 20 carriers with flights to 96 non-stop destinations.
- Interstate highways I-24, I-40, and I-65 converge in Nashville, putting the region within a 2.5 hour drive of 12 million people.
- CSX Transportation provides freight rail service with two major rail yards in Nashville.
- Port of Nashville on the Cumberland River provides access to the Ohio and Mississippi Rivers and the Gulf of Mexico.
Quality of Life:
Living and working in the Nashville MSA has many advantages that appeal to companies and workers considering relocation. Nashvillians enjoy a higher standard of living than workers in other large metros. The region has a relatively low cost of living and high per capita income, resulting in more disposable income for its residents. Nashville routinely places at the top of national and international livability rankings. Nashville is known as the "Music City" and is home to a vibrant music scene, as well as many other cultural attractions, such as museums, art galleries, and theaters. This makes it a popular destination for tourists and a desirable place to live for many people.
Strategically located in the heart of the Tennessee Valley, the Nashville region is where businesses thrive, and entrepreneurial spirit resonates across industries and communities. Investing in real estate in Nashville can be a lucrative opportunity due to its strong economic growth, growing population, favorable regulatory environment, diverse real estate market, real estate appreciation, strong rental market, and tourism industry.
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