Top Ranking NeighborhoodNeighborhood SearchProperty Search(NYC, NJ, DC only)Blog

Nashville TN Real Estate Update - 2024


Comprehensive Real Estate Report: Nashville, TN


Executive Summary

This report provides an in-depth analysis of the real estate market in Nashville, Tennessee, focusing on popular and fast-growing zip codes, crime rates and trends, economic and development plans, and demographic and population growth information. Nashville, known for its vibrant music scene and cultural richness, is also a city experiencing significant growth and transformation in its real estate landscape. This report aims to offer a detailed overview of these dynamics, utilizing the latest data and trends to inform potential investors, homebuyers, and policymakers.


1. Popular and Fast-Growing Zip Codes

Nashville's real estate market is characterized by a number of rapidly growing ZIP codes. According to the Greater Nashville REALTORS (GNR), the most popular ZIP codes based on closings for 2023 include Antioch, with approximately 200 homes on the market and a median sale price of $359,900 for a single-family home (WKRN News 2). The popularity of Antioch is attributed to its lifestyle offerings and the quality of the public school system, which are significant factors for new residents. The ZIP code for Antioch is 37013.


Furthermore, the fastest-growing cities in Tennessee, which could influence the popularity of their respective ZIP codes, include Thompson's Station, Nolensville, and Spring Hill. Thompson's Station, in particular, has seen a staggering 281.6% growth since 2010, with an absolute growth of 5,480 people (HomeSnacks). Nolensville follows with a 169.9% growth rate and an absolute growth of 9,093 people. These areas are likely to continue their growth trajectory, making their ZIP codes increasingly desirable for real estate investment and development. The ZIP codes for Thompson's Station, Nolensville, and Spring Hill are 37179, 37135, and 37174, respectively.


More neighborhoods and zip codes information are here


2. Crime Rate and Trend

Crime statistics in Nashville present a mixed picture. While violent crimes, including homicide, have shown a downward trend, property crimes, particularly auto theft, have seen a significant increase. As of February 2024, homicides in Nashville and Davidson County have dropped by approximately 70.6% compared to the start of the previous year. However, auto theft has surged by 123.5% compared to the same time last year (WKRN News 2; WSMV). This indicates that while the city is becoming safer in terms of violent crime, property crime remains a concern that could impact the real estate market.


3. Economy and Development Plans

Nashville's economy has demonstrated resilience and growth, with average household income increasing by more than 10% from 2021-2022 and unemployment maintaining a record low of 2.7%. The region has been relatively insulated from national inflationary pressures (Nashville Chamber of Commerce). Industry growth has been balanced, with notable increases in employment across most sectors, particularly in professional, scientific, and technical services.


The city has also embarked on comprehensive economic development plans, such as Prosper Nashville, which aims to create an inclusive and equitable economic development strategy for Metro Nashville and Davidson County. This plan is focused on promoting balanced and strategic growth and ensuring that all residents can prosper (Metro Government of Nashville and Davidson County).


Additionally, the NashvilleNext Plan provides a long-term vision for the city's growth and development through 2040, with a focus on leveraging the community's strengths and addressing pressing issues such as transportation and housing (Metro Government of Nashville and Davidson County).


4. Demographic and Population Growth Information

Nashville is experiencing significant demographic and population growth. By 2040, the city is expected to welcome an additional 200,000 people and over 300,000 more jobs (Metro Government of Nashville and Davidson County). This growth is driven by Nashville's appeal as a cultural and economic hub, attracting a diverse population.


The Nashville-Davidson–Murfreesboro–Franklin metro area's population is projected to grow from 2,039,400 in 2022 to 3,182,500 in 2060, a 56.1% increase. Employment is also expected to grow by 97.4% by 2060, with personal income per capita projected to increase significantly (24/7 Wall St.).


5. Business Incentives in Nashville

Nashville offers a competitive suite of incentives designed to attract and retain businesses. These incentives are sourced from the State of Tennessee, Tennessee Valley Authority, and local communities. They are tailored based on various economic factors such as capital investment, job creation, and wages. A qualified business that creates at least 25 net new jobs and invests a minimum of $500,000 over 36 months may be eligible for an incentives package. These packages can include job tax credits, infrastructure and training assistance, energy credits, low-cost loans and grants, tax abatement (PILOT), among others (Nashville Chamber, n.d.).


The State of Tennessee Department of Economic and Community Development (TNECD) offers competitive grants for workforce training, public infrastructure, and economic development to support long-term growth and profitability. Tax credits in Tennessee are also a significant draw, with incentives based on job creation, investment amounts, business type, and location. Sales and use tax exemptions, credits for qualified industrial machinery purchases, and enhanced job tax credits are part of the state's offerings to businesses (TNECD, n.d.).


Furthermore, the Tennessee Small Business Credit Initiative (SSBCI) has been approved for funding up to $116.9 million to support small business growth in the state. This initiative includes a suite of programs ranging from venture capital to loan programs and technical assistance, aiming to serve areas from rural to urban, including underserved communities (TNECD, 2023).


6. Job Growth and Employment Information

Nashville's economy has demonstrated strong and balanced growth across various sectors. In 2023, the professional, scientific, and technical services industry saw a significant 6.4% increase in employment, indicative of high-wage, high-demand jobs. The region ended the year on a strong note, with average household income increasing by more than 10% from 2021-2022, and unemployment at a record low of 2.7%. Despite national economic challenges, Nashville's economy has shown resilience and adaptability (Nashville Chamber, 2024).


The technology and healthcare sectors have been particularly robust, contributing to a total of 24,000 new jobs in 2023. However, there is a need for community-wide investment in workforce pipelines to fill over 50,000 job openings in the Nashville Metropolitan Statistical Area (MSA). The region's diverse economy, low costs of living and doing business, and well-educated population continue to drive economic prosperity (Nashville Chamber, 2024).


7. Major Employers and New Business Movements

Nashville is home to more than 2 million people and over 52,000 businesses. The region's major employers include Vanderbilt University Medical Center, Nissan North America, HCA Healthcare Inc., Vanderbilt University, and Ascension Saint Thomas. These employers span various industries such as healthcare, manufacturing, and higher education, reflecting the economic diversity of the area (6AM City Inc., 2024).


Recent developments indicate that Nashville continues to attract new businesses and witness expansions in food, retail, and entertainment sectors. The city's infrastructure, including its position as a transportation hub with major interstate highways and the Music City Star Rail, supports business operations and growth. Nashville's economy benefits from a strong manufacturing sector, with companies like Nissan, General Motors, and Ford employing thousands of workers. The city's arts and entertainment industry, known as "Music City," remains a top tourist destination, contributing significantly to the local economy (TN Real Estate, 2024).


8. Large Residential and Commercial Development Projects

  • Downtown Core and Surrounding Areas
    Nashville's skyline is undergoing a transformation with the addition of new hotels, office buildings, and mixed-use spaces. Notable projects include:
    • Ashwood 12 South: A mixed-use development located at 2212 12th Ave. S, adding retail and dining options to the 12 South area (Nash Today, 2024).
    • Four Seasons Hotel and Private Residences Nashville: A 40-story mixed-use tower at 151 1st Ave. S, featuring a ground-floor restaurant, retail space, a 232-room Four Seasons Hotel, and 143 private luxury residences (Nashville Business Journal, 2021).
    • Neuhoff: Situated at 1308 Adams St., this mixed-used development in Germantown includes office space, adaptive reuse, residential space, retail, and a parking garage (Nashville Business Journal, 2021).
    • Vanderbilt University - Nicholas S. Zeppos College: A project replacing aging residence halls with new structures designed to function as a campus within a campus at 2419 West End Ave. (Nashville Business Journal, 2021).
    • Broadwest: A 1.2 million sq. ft. project at 1600 West End Ave. that includes a 21-story Class AA office building (Nashville Business Journal, 2021).

  • Emerging Developments
    • Nashville Yards: A multi-phase project with various components including a Pinnacle office tower, creative office space, multifamily units, and a luxury commercial and residential project known as Peabody Union (Nashville Downtown, 2024).
    • Society Nashville: A 16-story, 502-unit residential project with retail space at 915 Division St (Nashville Downtown, 2024).
    • Circle South: A 580,000 sq. ft. office building at 410 8th Ave. S (Nashville Business Journal, 2021).
    • Paseo South Gulch: A two-tower project including 620 residential units, office space, and retail at 620 8th Ave. (Nashville Business Journal, 2021).

9. New Construction Communities and Builders

The Nashville area is attracting new households and employers, leading to the development of new home communities. Some of the notable communities and builders include:

  • Helmsley Place by Meritage Homes, offering homes in the range of $449,410 - $510,810 (New Home Source, 2024).
  • Gwynne Farms - Cambridge Collection by Lennar, with prices between $458,490 - $527,490 (New Home Source, 2024).
  • Shelton Square by Davidson Homes LLC, priced from $729,900 - $893,300 (New Home Source, 2024).
  • Waverly - Signatures by Beazer Homes, with homes ranging from $493,990 - $582,990 (New Home Source, 2024).

10. Real Estate Listing Inventory and Price Trend Information

  • Inventory and Sales
    As of February 2024, Nashville's real estate market had 2,961 homes for sale, a 14.6% increase compared to January 2024. The inventory of homes by bedroom count also saw increases across the board (Rocket Homes, 2024). The market conditions are described as neutral, with homes staying on the market for a typical length of time (Rocket Homes, 2024).

  • Price Trends
    The median home sold price in Nashville was $521,863 in February 2024, up 0.1% from last year, with the median price per square foot at $313 (Rocket Homes, 2024). However, the Nashville housing market presents a mixed picture, with some areas experiencing decreases in available inventory, while others, like Nashville proper and the metro area, saw inventory grow year-over-year (Forbes, 2023).

  • Market Dynamics
    The Nashville housing market is experiencing a paradox with high home prices but a slowdown in sales. This raises questions about the market's future and whether it could be facing a downturn (Forbes, 2023).

Conclusion

Nashville's real estate market is dynamic and growing, with several zip codes emerging as popular and fast-growing areas. Despite challenges with property crime, particularly auto theft, the city observes a decline in violent crime rates. The economy is robust, with inclusive and equitable growth plans underway to sustain development. Nashville is poised to experience substantial population and job growth in the coming decades, making it an attractive market for real estate investment and development.


The city's strategic business incentives, coupled with a robust job market and diverse economic landscape, make Nashville appealing to businesses and individuals alike. Its commitment to fostering growth through incentive programs, along with resilience in facing economic challenges, positions Nashville for continued prosperity. Looking ahead to 2024, Nashville's economy is expected to grow steadily, with a focus on diversification and community investment to support its growing business and employment opportunities.


Nashville's real estate market sees robust development projects and an expanding inventory of new homes. Supported by tourism, entertainment, healthcare, government, and education sectors, the city continues to attract new residents and businesses. While the market remains neutral with stable prices, a recent slowdown in sales amid high prices suggests a cautious approach for both buyers and sellers. Stakeholders must closely monitor these trends to make informed decisions in this dynamic market.


To see more Nashville neighborhoods, click here


References

© Congnitive Analystics LLC.
Terms of useAboutFAQ
Stay Connected