Nashville real estate is one of the fastest emerging markets in the nation. “Music City, U.S.A.” is not only home to country music and a hub for national events, it’s become one of the top real estate markets in 2017. So if you’re looking for a great investment, definitely consider Nashville real estate.
Nashville Real Estate Overview
Nashville was ranked #1 on Zillow’s top cities for real estate investing. The forecasted home value appreciation is 4.3%. Nashville’s home prices are on the rise, reflecting developments in the real estate business, the finance industry, and overall development community. There are also some serious construction plans going on in Nashville. 12,000 apartment units were under construction in 2016. This should be encouraging for investors because it means that prices won’t be soaring for Nashville real estate, nor will supply shortages be a problem.
It’s no wonder Airbnb Nashville is doing great. In September 2016, Nashville had 3,000 active listings on Airbnb’s site. The city is a center tourist attraction in the state of Tennessee. City visitors can enjoy places like the Country Music Hall of Fame and Museum, the Nashville Parthenon, The Hermitage Museum, Cheekwood Botanical Garden and Museum of Art, among others. Additionally, Forbes travel guide named Nashville one of the top destinations in 2016, while Travel and Leisure ranked it as the #1 Music Scene.
Airbnb Nashville Data
- Average Median Home Price: $535,000
- Average Airbnb Rental Income: $2,858
- Average Airbnb Cash on Cash Return: 5.68%
- Average Airbnb Cap Rate: 8.96%
In early February 2017, Tennessee lawmakers have drafted a bill that aims at replacing/softening existing policies regarding the short-term home-sharing service (passed in 2014). The bill plans to prohibit any banning of Airbnb rentals in Nashville and Tennessee at large. Previous restrictions dictated that limited the number of guests staying at a certain property. That in addition to restricting properties listed on Airbnb per neighborhood to 3%. It is currently unknown whether these restrictions will change with the passing of the bill or whether they will remain. Overall, the drafting of the bill alone can be considered great news for Airbnb Nashville investors. The more deregulated the service is, the easier and more profitable it is to invest in Airbnb Nashville.
Why Nashville Real Estate?
It’s no secret Nashville was ranked #4 city for jobs in 2016 and #3 ‘boom town’. Tennessee at large has ranked #13 among all states for business, and the #5 best city to kickstart a startup. The city’s also shown strong income growth with a 1.1% increase for Nashville residents, and 4.0% recorded unemployment rate. The city’s medical and health care industry is also flourishing, and providing employment opportunities with hundreds of medical companies operating and expanding in the city.
All of these factors have been driving an influx of people into Nashville. Most are seeking employment opportunities, and seeking to find a place to stay. This is your opportunity as an investor considering Nashville investment properties.
Colleges and Universities
There is a large number of colleges/universities and university students in Nashville. No wonder it’s considered as the “Athens of the South.” Nashville’s top universities include Vanderbilt University, Belmont University, and Tennessee State University. There are over 30 other institutions for higher education in Nashville, home to a little over 58,000 students. And while a large number of these students live on campus, a large portion seek housing in the city. This makes Nashville a great place for traditional investment as well as it is for Airbnb.
Nashville Event Calendar
The 2017 Nashville calendar is looking remarkably eventful. Regina Spektor, Steve Miller Band – Marty Stuart & His Fabulous Superlatives, The Goo Goo Dolls, OneRepublic & James Arthur, Colony House, and John Mayer are all going to be performing in Nashville between now and summer 2017. Not only that, but the city’s going to be celebrating several national festivals such as the East Nashville Beer Festival, The Cherry Blossom Festival, The Nashville Film Festival, The Tin Pan South, among other huge events. These events, among tens more, will definitely be bringing tens of thousands of visitors from all over the nation – many of whom will be staying at Airbnb rentals.
To Sum Up on Nashville Real Estate…
So you’ve got a great economy, great education, great events, great food, and great attractions. Nashville’s really got it all. For the investor, Nashville real estate is an affordable market with a lot of potential for growth and profit potential. Remember that you can use Mashvisor to view different information such as listing price, cash on cash return, expected rental income, and Airbnb occupancy rate. Mashvisor will help you figure out where to make the best investment in Nashville real estate.