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Nashville

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.

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Nashville  Real Estate Investment Performance
Facts and Market Trends in Nashville
Homes For Sale714
Airbnb Properties2,924
Rental Properties1,991
Traditional Vacancy rate8.40%
Airbnb Occupancy Rate50.24%
Mashmeter63.84%
Median Price$399,950
Median Rent Price$1,815
Price/sqft$2,384
Median Days on Market66
Price to Rent Ratio25.1
Average Cap Rate
Airbnb2.72%
Traditional2.47%
Average Rental Income
Airbnb$2,426
Traditional$1,557
 
Median Household Income$12,599
Population697,560
Transportation in Nashville
28 / 100
Car-Dependent
24 / 100
Minimal Transit
25 / 100
Somewhat Bikeable
Nashville  Rent Prices
RENTAL STRATEGY STUDIOS 1 ROOM 2 ROOMS 3 ROOMS 4 ROOMS
Airbnb$1,441$1,353$1,792$2,476$3,821
Traditional$1,062$1,090$1,232$1,597$2,056
Nashville, TN - Homes for Sale - Newly Listed
$330,000
MLS 2243856
561 Croley Dr
Nashville, TN 37209
Croley Wood
Single Family Residential
2 beds1 baths912 sq.ft.
CAP RATE
Trad. 0.93%Airbnb 2.24%
$490,000
MLS 2243864
1302 63rd Ave, N
Nashville, TN 37209
Croley Wood
Townhouse
4 beds3 baths1,786 sq.ft.
CAP RATE
Trad. 2.34%Airbnb 4.73%
$315,000
MLS 2243865
105 Saddlestone Ct, S
Nashville, TN 37076
Rachel Jackson Garden Club
Single Family Residential
4 beds2 baths1,371 sq.ft.
CAP RATE
Trad. 3.33%Airbnb 0.73%
$385,000
MLS 2243277
6113 Hagars Grove Pass
Nashville, TN 37076
Rachel Jackson Garden Club
Single Family Residential
3 beds2 baths2,194 sq.ft.
CAP RATE
Trad. 2.42%Airbnb 0.46%
Top Performing Nashville Properties
$439,900
MLS 2221796
114 Walden Village Ct
Nashville, TN 37210
Shelby Hills
Single Family Residential
4 beds4 baths1,935 sq.ft.
CAP RATE
Trad. 2.16%Airbnb 7.85%
$395,000
MLS 2237751
222 Hurst Dr
Nashville, TN 37138
Historic Old Hickory Village
Single Family Residential
3 beds3 baths2,645 sq.ft.
CAP RATE
Trad. 1.95%Airbnb 7.83%
$425,000
MLS 2239697
2418 Abbott Martin Rd
Nashville, TN 37215
Abbotsford
Other
2 beds2 baths1,163 sq.ft.
CAP RATE
Trad. 4.50%Airbnb 7.80%
$469,000
MLS 2238897
712 Desmond Dr
Nashville, TN 37211
Crieve Hall
Single Family Residential
3 beds2 baths2,080 sq.ft.
CAP RATE
Trad. 3.50%Airbnb 7.75%
Recently Sold Homes in Nashville, TN
$685,000
MLS 2209094
103 Cherokee Rd
Nashville, TN 37205
Cherokee Park
Multi Family
0 beds2 baths2,000 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$487,500
MLS
1209 Pine St
Nashville, TN
The Gulch
Single Family Residential
beds baths0 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$379,000
MLS
1211 Medical Center Dr
Nashville, TN
Music Row
Single Family Residential
beds baths0 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$649,000
MLS 2243544
5002 Dakota Ave
Nashville, TN 37209
Sylvan Park
Multi Family
0 beds3 baths2,160 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
$349,900
MLS 2202609
240 Cedarmont Cir
Nashville, TN 37211
Hickory Valley Condos
Multi Family
0 beds2 baths2,200 sq.ft.
CAP RATE
Trad. 2.32%Airbnb N/A
$450,000
MLS 20210992
604 Hapwood Drive
Nashville, TN 37205
Hillwood Estates
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. 1.98%Airbnb N/A
$499,000
MLS 2221723
3104 Gallatin Pike
Nashville, TN 37216
Kenmore
Multi Family
0 beds2 baths660 sq.ft.
CAP RATE
Trad. 1.50%Airbnb N/A
$549,900
MLS 2239864
201 Ewing Dr
Nashville, TN 37207
Hillhurst Homeowners
Multi Family
0 beds4 baths1,934 sq.ft.
CAP RATE
Trad. 1.30%Airbnb N/A
Homes Below Median Price in the Nashville, TN Real Estate Market
$439,900
MLS 2221796
114 Walden Village Ct
Nashville, TN 37210
Shelby Hills
Single Family Residential
4 beds4 baths1,935 sq.ft.
CAP RATE
Trad. 2.16%Airbnb 7.85%
$395,000
MLS 2237751
222 Hurst Dr
Nashville, TN 37138
Historic Old Hickory Village
Single Family Residential
3 beds3 baths2,645 sq.ft.
CAP RATE
Trad. 1.95%Airbnb 7.83%
$425,000
MLS 2239697
2418 Abbott Martin Rd
Nashville, TN 37215
Abbotsford
Other
2 beds2 baths1,163 sq.ft.
CAP RATE
Trad. 4.50%Airbnb 7.80%
$469,000
MLS 2238897
712 Desmond Dr
Nashville, TN 37211
Crieve Hall
Single Family Residential
3 beds2 baths2,080 sq.ft.
CAP RATE
Trad. 3.50%Airbnb 7.75%
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
$76 per night
$92 per night
$84 per night
$80 per night
Nashville, TN Homes for Rent
$1,660
MLS 2242158
1700 Londonview Pl
Nashville, TN
Long Hunter Chase
Single Family
3 beds2 baths1,338 sq.ft.
$2,775
MLS 2243985
269 Founders Ln
Nashville, TN
The Gulch
Single Family
3 beds3 baths1,634 sq.ft.
$2,775
MLS 2243877
261 Founders Ln
Nashville, TN
The Gulch
Single Family
3 beds3 baths1,634 sq.ft.
$1,200
MLS 2243554
204 Westfield Dr
Nashville, TN
The Gulch
Apartment
2 beds2 baths850 sq.ft.
Nashville, TN Open Houses
Open 12 PM to 2 PM
$869,900
MLS 2243335
828 W Argyle Ave
Nashville, TN 37203
Historic Waverly Place
Other
4 beds4 baths3,013 sq.ft.
CAP RATE
Trad. 0.63%Airbnb 3.19%
Open 2 PM to 4 PM
$342,000
MLS 2242042
2109 Belle Creek Way
Nashville, TN 37221
South Hampton
Other
3 beds3 baths1,487 sq.ft.
CAP RATE
Trad. 2.54%Airbnb 2.60%
Open 2 PM to 4 PM
$375,000
MLS 2241194
2314 24th Ave, N
Nashville, TN 37208
Buena Vista Heights
Single Family Residential
3 beds3 baths1,486 sq.ft.
CAP RATE
Trad. 0.35%Airbnb 3.49%
Open 2 PM to 4 PM
$465,000
MLS 2243204
53 Peachtree St
Nashville, TN 37210
Woodbine
Single Family Residential
3 beds3 baths1,618 sq.ft.
CAP RATE
Trad. 1.08%Airbnb 3.21%
Best Nashville Neighborhoods for Buying Investment Property
71%
Mashmeter
property price
$504,950
Median
cap rate
4.57%
Traditional
9.89%
Airbnb
rental income
$1,922
Traditional
$4,163
Airbnb
homes for sale
17
occupancy rate
54%
Airbnb
72%
Mashmeter
property price
$319,999
Median
cap rate
7.36%
Traditional
15.13%
Airbnb
rental income
$1,964
Traditional
$4,034
Airbnb
homes for sale
5
occupancy rate
56%
Airbnb
70%
Mashmeter
property price
$799,950
Median
cap rate
3.34%
Traditional
6.39%
Airbnb
rental income
$2,226
Traditional
$4,262
Airbnb
homes for sale
4
occupancy rate
58%
Airbnb
70%
Mashmeter
property price
$629,900
Median
cap rate
4.10%
Traditional
7.41%
Airbnb
rental income
$2,153
Traditional
$3,888
Airbnb
homes for sale
3
occupancy rate
52%
Airbnb
74%
Mashmeter
property price
$475,000
Median
cap rate
5.50%
Traditional
8.86%
Airbnb
rental income
$2,176
Traditional
$3,508
Airbnb
homes for sale
1
occupancy rate
50%
Airbnb
All Nashville Neighborhoods