Nashville Real Estate Market Analysis

Nashville Houses for Sale

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Nashville is the capital and most populous city of Tennessee. Nashville enjoys an ethnically diverse population of 690,000 residents, which makes it the 24th largest city in the US. The sizeable population combined with the fact that 48% of the residents rent rather than own a home is a good indicator for those considering investing in the Nashville real estate market, especially when it comes to traditional rental properties.

Located in northern Middle Tennessee, Nashville features a strong, diverse economy. This is a very positive indicator for real estate investors regardless of the strategy they are interested in. Indeed, POLICOM ranked Nashville as the strongest Metropolitan area economy in the US as a result of the consistent long-term growth. The largest industry in the Athens of the South is health care as the city hosts over 300 health care companies. The automotive industry has been gaining importance in recent years. Moreover, nicknamed “Music City”, Nashville is the second largest music recording and production center (after New York City) and is considered the home of country music. Other major industries include finance, insurance, and publishing. The diverse economy is another positive signal for Nashville real estate investors.

Nashville is a busy tourist destination with over 14 million visitors per year. The main attractions comprise of country music-related events, performances, and buildings as well as historic sites and arts centers and museums. Furthermore, Nashville is home to a full-scale replica of the Parthenon, which is one of the reasons why the city is often called the Athens of the South.

The Nashville real estate market is a strong one with a positive outlook. PWC named Nashville as the 5th most important US Market to Watch in terms of overall real estate perspectives. Some of the factors creating the favorable conditions in the Nashville housing market include the fundamental demographic and economic shifts as well as the relocation of a major financial services company there.

Nashville  Real Estate Investment Performance

Facts and Market Trends in Nashville
Homes For Sale2,106
Airbnb Properties5,998
Rental Properties161
Traditional Vacancy rate6.00%
Airbnb Occupancy Rate60.98%
Mashmeter34.96%
Median Price$520,000
Median Rent Price$2,725
Price/sqft$735
Median Days on Market51
Price to Rent Ratio33.4
Average Cap Rate
Airbnb6.05%
Traditional2.64%
Average Rental Income
Airbnb$4,157
Traditional$1,894
 
Median Household Income$67,008
Population692,587
Transportation in Nashville
98 / 100
Walker’s Paradise
73 / 100
Excellent Transit
72 / 100
Very Bikeable
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Nashville  Rent Prices

RENTAL STRATEGY STUDIOS 1 BEDROOM 2 BEDROOMS 3 BEDROOMS 4 BEDROOMS
Airbnb$2,473$2,406$3,252$4,268$5,623
Traditional$1,383$1,415$1,597$2,027$2,481

Nashville, TN - Homes for Sale - Newly Listed

604 Harpeth Trace Dr
Nashville, TN 37221
West Meade Park
Single Family Residential
3 beds2 baths2,296 sq.ft.
CAP RATE
Trad. 1.61%Airbnb 3.88%
338 E Village Ln
Nashville, TN 37216
Gra-Mar Acres
Condo/Coop
3 beds3 baths1,709 sq.ft.
CAP RATE
Trad. 1.92%Airbnb 5.88%
102 Fitzgerald
Nashville, TN 37214
Cloverhill
Condo/Coop
3 beds3 baths1,802 sq.ft.
CAP RATE
Trad. 2.35%Airbnb 3.70%
2209 Hobbs Rd
Nashville, TN 37215
Abbotsford
Single Family Residential
4 beds4 baths5,630 sq.ft.
CAP RATE
Trad. -0.54%Airbnb -0.39%

Top Performing Nashville Properties

2919 Kinwood Dr
Nashville, TN 37013
Forest View Park
Single Family Residential
3 beds1 baths2,096 sq.ft.
CAP RATE
Trad. 5.76%Airbnb 7.96%
501 Elaine Dr
Nashville, TN 37211
Highview Acres
Single Family Residential
3 beds1 baths1,000 sq.ft.
CAP RATE
Trad. 4.09%Airbnb 7.96%
141 Eagan Cir
Nashville, TN 37115
Archwood Acres
Single Family Residential
3 beds2 baths1,091 sq.ft.
CAP RATE
Trad. 3.64%Airbnb 7.95%
1615 Heiman St
Nashville, TN 37208
Elizabeth Park
Single Family Residential
2 beds2 baths1,197 sq.ft.
CAP RATE
Trad. 0.57%Airbnb 7.95%

Recently Sold Homes in Nashville, TN

2308 Knowles Ave
Nashville, TN 37204
Melrose
Condo/Coop
2 beds2 baths1,482 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
1835 Green Hills Dr
Nashville, TN 37215
Green Hills Neighbors
Single Family Residential
5 beds4 baths4,211 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
1285 Lowes Ln
Nashville, TN 37072
Dalemere Area
Single Family Residential
3 beds2 baths1,250 sq.ft.
CAP RATE
Trad. 0.13%Airbnb 1.65%
525 Battery Dr
Nashville, TN 37220
Green Hills Neighbors
Single Family Residential
6 beds5 baths4,041 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A

Property Value Changes and Real Estate Appreciation in the Nashville Housing Market

Nashville has witnessed strong real estate appreciation in recent years. According to data from NeighborhoodScout, Nashville property values have increased by 114% since 2000, which amounts to an average annual growth of 4.1%. This exceeds significantly the rate of appreciation in both the State of Tennessee and the US housing market as a whole. In 2017, the Nashville real estate market experienced the 3rd largest increase in home values nationwide at a rate of 12.5%. Zillow reported a growth in property prices of 8.2% in 2018, which is still very high. ATTOM Data Solutions contributes this strong natural appreciation mainly to the migration of people from high-cost housing markets.

In 2018, the Nashville real estate property inventory started slowing catching up with demand. As a result, home values are increasing at a slower pace, and the Nashville real estate market is starting to favor buyers rather than sellers.

The fact that Nashville is turning into a buyer’s market combined with the affordable property prices makes Music City one of the best locations for real estate investing in 2019 and beyond.

Nashville, TN Top Multi Family Homes

Homes Below Median Price in the Nashville, TN Real Estate Market

2919 Kinwood Dr
Nashville, TN 37013
Forest View Park
Single Family Residential
3 beds1 baths2,096 sq.ft.
CAP RATE
Trad. 5.76%Airbnb 7.96%
501 Elaine Dr
Nashville, TN 37211
Highview Acres
Single Family Residential
3 beds1 baths1,000 sq.ft.
CAP RATE
Trad. 4.09%Airbnb 7.96%
141 Eagan Cir
Nashville, TN 37115
Archwood Acres
Single Family Residential
3 beds2 baths1,091 sq.ft.
CAP RATE
Trad. 3.64%Airbnb 7.95%
1615 Heiman St
Nashville, TN 37208
Elizabeth Park
Single Family Residential
2 beds2 baths1,197 sq.ft.
CAP RATE
Trad. 0.57%Airbnb 7.95%

Nashville Airbnb Growth and Regulations

The Airbnb rentals business has been booming in Nashville, as a result of the city’s position as a hot tourist destination. The local authorities have been fighting this phenomenon in recent years, issuing a number of different regulations and restrictions. In January 2018 the Nashville Metro Council approved a bill to phase out non-owner occupied short-term rentals from residential zoned neighborhoods in the next three years. The ban applied mostly to single-family homes and duplexes. Meanwhile, owner-occupied single-family homes, housing units in multi-family properties, and rentals in commercial zones were not affected. Subsequently the discussion reached the House and the Senate, where two different bills were passed. Eventually a conference committee passed a final legislation according to which existing Nashville Airbnb rentals can continue to operate. However, a permit to operate as a short-term rental cannot be passed on when selling a property in the Nashville real estate market.

Furthermore, short-term rentals in the city are tightly regulated. Operating an Airbnb Nashville rental property requires a permit which needs some detailed documentation and which must be renewed every year. A violation can lead to a monetary fine as well as a revocation of the permit. In addition, Nashville Airbnb hosts are required to collect and remit hotel occupancy tax to the State Finance Department no later than the 20th day of the month following collection.

Nashville, TN Top Airbnb Homes

Entire home/apt · 1 bed
Charming private apt. in hip area
1065

Nashville, TN Homes for Rent

9 Hickory Ct
Nashville, TN 37013
Oak Highlands
Single Family
3 beds3 baths1,440 sq.ft.
4208 Murphy Rd
Nashville, TN 37209
The Gulch
Single Family
4 beds2 baths1,818 sq.ft.

Nashville, TN Open Houses

3506 General Bate Dr
Nashville, TN 37204
Battlefield
Single Family Residential
3 beds2 baths1,632 sq.ft.
CAP RATE
Trad. 1.81%Airbnb 5.02%
1419A Franklin Ave
Nashville, TN 37206
Eastwood
Single Family Residential
3 beds2 baths2,252 sq.ft.
CAP RATE
Trad. 0.87%Airbnb 4.10%
1801 Glade St
Nashville, TN 37207
Haynes Area
Single Family Residential
3 beds3 baths2,216 sq.ft.
CAP RATE
Trad. 0.97%Airbnb 4.68%
813 N 6th St
Nashville, TN 37207
East Nashville Block Club
Single Family Residential
3 beds2 baths1,340 sq.ft.
CAP RATE
Trad. 3.21%Airbnb 6.25%

Best Nashville Neighborhoods for Buying Investment Property

Napier Area
Nashville, TN
78%
Mashmeter
property price
499559
Median
cap rate
3.60%
Traditional
12.83%
Airbnb
rental income
$1,498
Traditional
$5,341
Airbnb
homes for sale
7
occupancy rate
64%
Airbnb
Shephardwood
Nashville, TN
73%
Mashmeter
property price
348777
Median
cap rate
7.99%
Traditional
12.59%
Airbnb
rental income
$2,323
Traditional
$3,661
Airbnb
homes for sale
1
occupancy rate
59%
Airbnb
Cumberland Gardens
Nashville, TN
66%
Mashmeter
property price
440000
Median
cap rate
3.66%
Traditional
10.60%
Airbnb
rental income
$1,343
Traditional
$3,887
Airbnb
homes for sale
8
occupancy rate
55%
Airbnb
Trinity Hills
Nashville, TN
65%
Mashmeter
property price
99500
Median
cap rate
16.78%
Traditional
45.76%
Airbnb
rental income
$1,391
Traditional
$3,795
Airbnb
homes for sale
7
occupancy rate
53%
Airbnb
Barcelona Condos
Nashville, TN
64%
Mashmeter
property price
168000
Median
cap rate
11.64%
Traditional
21.71%
Airbnb
rental income
$1,630
Traditional
$3,040
Airbnb
homes for sale
4
occupancy rate
65%
Airbnb
Other Housing Market Reports

All Nashville Neighborhoods