Is Nashville A Good Place To Invest In Real Estate?

Definition of "Is Nashville a Good Place to Invest in Real Estate?"

Aaron Joyce Affiliate Broker real estate agent

Written by

Aaron Joyce Affiliate Brokerelite badge icon

Keller Williams Realty

The real estate market in Nashville is harsh. Investors and wannabe homeowners fight over the low inventory. Investors want to get passive income by renting the property, while others simply want to own their primary residence and put an end to the renting lifestyle. Both are looking for stability and long-term ownership. But is Nashville a good place to invest in real estate? 

Real estate agents in Nashville TN think the market is cruel and a little bit unfair with the honest homebuyers. Experienced investors though know how to speculate and how to get what they want even in the toughest markets. While in California, foreign investors buy homes and don’t even bother to rent them because they increase in value like the bread dough, here, in Nashville, rents are growing faster than home values. All across the US, real estate markets have different temperatures. But to answer the question, yes, Nashville is a good place to invest in real estate. The city of Nashville is growing pretty fast and ranks among the top 10 cities with a fast-growing job market. 

The first good sign that Nashville is a good place to invest in real estate is found in the low unemployment rate. The high concentration of large employers speaks volumes about the economic climate which is healthy and sturdy. So people can afford to rent here. 

In fact, many people in Nashville wonder whether it is better to buy than to rent. Given the fact that renting a three-bedroom apartment is cheaper than owning one through a 30-year mortgage, most potential home buyers prefer to wait until the market shows signs of mercy for them and lowers either the home prices or the interest rates. Now, home prices are fairly high and the inventory is low. Bidding wars are common and many properties sell for more than the asking price. The vacancy rate is about 8%, but there is a big appetite for rentals among students and low-income families. 

More than 20,000 multi-family homes have been built over the past three years, and 16 out of 20 units are leased out. Gentrification may also speed up as the new Amazon operations hub comes to life in Nashville Yards. It is supposed to generate 5,000 jobs and although that will have a negative impact on traffic, it will surely have a positive one on real estate. A steep increase in home prices and rents is to be expected, just like it happened in New York when the Amazon HQ2 was announced. So, expert real estate investors anticipate the evolution of the market and invest early, while prices are still low. 

What do you think, now? Is Nashville a good place to invest in real estate?

One final thought: Don’t forget that each property is different and you really have to do the math before investing. There are many formulas and indicators that you should be familiar with. But if you know how to do a SWOT analysis, then you’re good to go. May the numbers be always in your favor!

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