It’s no secret that Nashville’s real estate market has been in the midst of a steady but meteoric rise to prominence during the past decade. At certain points over the past few years, it has been estimated that as many as 120 people were moving to Nashville each and every day. This is undoubtedly due (at least in part) to Nashville’s status as an “it” city. However, the factors driving Nashville’s real estate boom are much more concrete and economic.
To put it simply, Nashville makes things easy for business. The cost of living is low, as is the cost of running a business. The fact that Tennessee has no state income tax is a nice bonus, as well. As a result, many “hip,” influential companies such as Eventbrite, Lyft, and Warby Parker have opened up major offices in Nashville as a 3rd location behind New York City and San Francisco. However, Nashville’s real cash cow is its healthcare sector. Nashville has been called the Silicon Valley of healthcare, and business is good. With all this buzz, it can be difficult to separate truth from excitement.
It’s the beginning of 2017, so we thought that this would be a good time to check in on the state of affairs.
How’s Nashville Doing, Really?
As it turns out, better than ever!
In mid-2016, the Nashville Business Journal reported that Nashville has seen a 10% rise in the number of real estate closings in the first quarter. This is regional data they sourced from the Greater Nashville Association of Realtors, which covers 9 counties, including Davidson and Williamson. The fact these positive trends in real estate cover the entire region should be comforting to homebuyers and homeowners in places such as Brentwood and Franklin. In fact, real estate in Williamson county had a median sale price that was just shy of $500,000 during much of last year.
Ten-X was recently quoted saying the following: "Driven by significant gains from its key sectors, Nashville has enjoyed strong economic drivers in arenas like education/healthcare services ... A flurry of downtown construction projects has led to a boom in the industry, during which employment grew 6.2 percent —that’s 3 percent higher than last year and 14.3 percent higher than its prior cyclical peak. While the pace of new building has aroused concern that it could lead to overbuilding, local homes have remained affordable, and the area’s population gain at 1.9 percent in recent years is more than double the U.S. rate, trending toward continued growth in its single-family housing market."
But that was last year. At this point, you might be wondering if anything has been reported about Nashville’s real estate market so far in 2017, and the answer is YES!’
Zillow recently announced their predictions for the 2017 real estate market and this included a list of the top 10 housing markets in America.
Guess which city clinched the top spot…
It was Nashville! Nashville was ranked as the #1 real estate market in 2017, ahead of cities like Seattle, Portland, and Denver.
Zillow cited employment opportunities from Nashville’s health care sector as one of the biggest factors driving Nashville’s real estate market. Indeed, many young professionals are choosing not to flock to mega-cities like New York and San Francisco. Fortune suggests that this trend has everything to do with cost of living. Real estate markets in bigger cities are increasingly strained as wages struggle to keep up with cost of living. Conversely, cities like Nashville can’t build new real estate fast enough! If you’ve been through downtown Nashville recently, you’ve undoubtedly seen an excess of construction happening.
We have no doubt that Nashville’s real estate boom will continue through 2017.
If you’re thinking about cashing in on your investments, you need to do your due diligence to raise your property value as high as possible. A good place to start might be a with a new coat of paint. We can help you there.