If there is one thing we know for sure, it’s that you’re going to be hearing a lot about investment properties in Nashville. Not only from us here at Mashvisor, but from other investors, clients, realtors, and even friends.
Investing in Nashville Real Estate: An Overview
Nashville real estate is definitely considered a seller’s market in 2017. The Music City is becoming massively popular among real estate investors. So popular that some houses are selling within just 24 hours of being on the market. Moreover, home value appreciation is at 4.3%, while unemployment rate is 4.0%. There is also an annual home price growth of 9% for Nashville real estate investment properties. Properties in Nashville are also yielding a higher rental return. If these numbers don’t encourage you to consider investing in Nashville real estate, we don’t know what will.
How is the cost of investing in Nashville real estate changing?
The change in the cost of investing in Nashville real estate is synonymous with the growth of Nashville as a city, as an economy, and a tourist destination. According to the United States Census Bureau, the average home price peaked from $167,500 in 2011 – 2015 to $266,408 in 2016. And according to Mashvisor, the median home price for Nashville investment properties is $535,000. The change in the cost of investing in Nashville real estate is drastically changing due to the fact that a large number of people want to buy and rent property in the city, and an inventory that basically can’t keep up. There are many desirable areas in the city for everyone from investors, to families, entrepreneurs, and artists. And as long as Nashville keeps growing, so will the cost of investing in rental property for sale in Nashville.
Top Nashville Neighborhoods Data
Here is a list of some of the top Nashville neighborhoods coupled by their respective median home prices from most affordable, to least affordable:
Note that median home price data includes condos, townhouses, and single family homes.
- JSH Neighborhood Club: $125,000
- Inglewood (Riverwood): $292,450
- Edgehill Community Garden: $400,000
- The Gulch: $535,000
- Music Row: $657,450
To view more information on these neighborhoods, among others, make sure to use Mashvisor. Our property search services will allow you to browse through different investment property options for sale in Nashville. Mashvisor’s analytics will allow you to make informed investing decisions by providing information on estimated monthly return, average CoC return, cap rate, Airbnb occupancy rate, among other important values.
How affordable is investing in Nashville real estate is?
With over a 100 people moving to Nashville every day, and increasing demand for Nashville real estate, housing prices are becoming less and less affordable by the day for investors and renters alike. At the same time, Nashville’s cost of living remains relatively low compared with other metropolitan cities in the US. In fact, Forbes ranked Nashville #11 for cities with the best cost of living. Kiplinger has also ranked the city as the #4 most affordable city. To top that, the city’s job market, employment opportunities, as well as the overall economy are improving. It’s therefore fairly safe to say that investing in Nashville real estate market can be considered among the more affordable options in the nation for both in state, and out of state investors.
BUT, and this is a big but, if you’re considering investing in Nashville real estate, now is the time. You don’t want to be too late because investing in Nashville real estate may not be as affordable well into 2017 as it is now.