Nashville Housing Market: Trends & Prices

Nashville Real Estate Market Overview

(Last Updated – 11/2021)

While some know of Nashville as the Country Music Capital of the World, others know it as a great place to live. In fact, U.S. News has named Nashville the 30th best place to live in America.

The access to amazing music is part of the Nashville appeal, but so are the unique museums and architecture. Foodies have as many vegan options as they do barbecue.

Not to mention, it’s considered to be an affordable city compared with other major U.S. metro areas. As a bonus, Tennessee is one of the few states that don’t tax wages, which may contribute to Nashville’s homeownership rate of 70%.

Between 2010 and 2020, the Downtown neighborhood alone saw a 152% increase in population growth. And that’s just one of many Nashville neighborhoods.

One more number worth mentioning: Nashville ranked eighth in the Milken Institute’s 2021 Best Performing Cities. The index rates cities based on job creation, wage growth, housing affordability, and high-tech growth. Home to major employers such as Vanderbilt University Medical Center, Nissan North America, Asurion, and Amazon, Nashville could be a great place to start or advance a career.

If you’re starting to see the appeal and thinking about buying in Music City, keep reading for details about the Nashville real estate market.

Overall Nashville Market Trends

Comparing housing market trends by city can be interesting. Redfin considers the Nashville market to only be “somewhat competitive,” with some homes getting multiple offers. The average sale price in 2021 is 16% higher than last year. Most homes are selling for slightly above their list price.

Nashville Housing Market Forecast

One of the hottest housing markets in the country, Nashville saw home values rise by 16.2% over the past year.

Real estate experts expect the Nashville market to remain a seller’s market for the foreseeable future, largely because inventory cannot keep up with demand.

Impact of Covid-19 on the Nashville Housing Market

Housing reports show that the onset of Covid-19 in March 2020 caused a major disruption to Nashville’s real estate market. Home sales plummeted during the second quarter as the restrictions of the pandemic limited homeowners’ ability to sell and move. By the summer of 2020, the recovery of Nashville’s housing market was underway. The market continued to gain steam as out-of-state home seekers sought to escape stricter Covid restrictions and high taxes.

Despite low inventory and fairly high competition, buyers continue to flock to Nashville. Closings in August 2021 were reportedly up 6% from a year ago, while inventory was down over 26% from August 2019.

One of the reasons that demand for Nashville housing is at historic highs has been low mortgage interest rates. While real estate agents report that they are seeing a slow rise in inventory, the market will stay competitive for the foreseeable future if there is not a substantive increase in housing supply and interest rates remain low.

Demographics of the Nashville Market

Popular Nashville Neighborhoods

There are over a dozen unique and charming neighborhoods to explore in Nashville. While this may sound like a good thing, it can make home shopping tricky.

Before you get your heart set on a certain Nashville neighborhood, check out these details worth considering for five of the most popular neighborhoods.

12 South

12 South may be one of Nashville’s smallest neighborhoods, but size doesn’t matter when it comes to this in-demand destination just south of Downtown.

A stroll down bustling 12th Avenue, 12 South’s main drag, makes it clear why this area has become a go-to spot for the young millennial crowd. Home to an eclectic dining scene, trendy boutiques, craft cocktails, and Dolly Parton’s rehearsal studio, 12 South has everything you could need within walking distance of home, including the 20-acre Sevier Park.

12 South Housing Market

Hope Gardens

Hope Gardens is full of young professionals who are building their lives and buying homes. Grade-A nightlife and dining options add to the appeal of Hope Gardens, as does its diverse and urban feel.

Hope Garden Housing Market

Germantown

Germantown has European roots and received its name from the European immigrants that settled the area in the mid-19th century.

This historic community is just a few blocks from Downtown and hosts the Tennessee State Museum and Bicentennial Capitol Mall State Park, making weekends with the family a blast.

Germantown Housing Market

East End

East End is one of the largest neighborhoods in Nashville, so you should have plenty of great home options to choose from in this area.

East End is rather self-contained, which means you can find everything you need right in your own neighborhood, including fine dining and amazing public parks.

East End Housing Market

Downtown

You want it, Downtown Nashville has it—from museums and sports, to shopping and restaurants galore. There is no shortage of fun to be found Downtown.

It is also the home of Nashville Yards, a new 17-acre development in the heart of Downtown, featuring dining and retail, entertainment, a high-end hotel, residential, office space — and Amazon Nashville’s headquarters.

This dynamic, urban neighborhood has a lot of great apartment options, but you can also consider buying property that will keep you close to work, public transit, and all the entertainment you can hope for.

Downtown Housing Market