Nashville Housing Market Takes Top Spots
Considering a move to Nashville? You’re not alone. The Wall Street Journal and Realtor.com named Nashville, Tennessee the top city in the U.S. luxury housing market. Let’s talk about what has set Music City apart in recent years and contributed to its rise to the top.
What Determines the “Top Luxury Housing Market”
We all know Nashville for its country music-filled establishments and hot chicken. So what makes it the top choice for the luxury housing market? In the second quarter of 2022, Realtor.com analyzed national housing markets and economic variables to create an index for scoring the top luxury housing markets.
The index included factors such as an area’s growth in housing supply and demand, median home prices, the number of small businesses, property taxes, unemployment rates, and average wages.
In the last 10 years, the Nashville housing market has thrived in almost every one of these areas. Let’s break it down.
What Got the Nashville Housing Market to the Top?
Nashville wasn’t always a city that people flocked to. Pre-1990/2000, it was really only known as a city with bars and country music. The arrival of two professional sports teams- the Titans and the Predators- in the late 1990s helped the city begin to transform. More businesses came to the area and new builds and infrastructure began to emerge. Things went uphill from there.
The Pandemic’s Impact on the Nashville Housing Market
When the COVID-19 pandemic hit in 2020 and work-from-home orders swept the nation, young professionals no longer needed to live in major metropolises. They moved from areas like New York to smaller, more centrally located cities like Nashville. In 2020, Tennessee topped U-Haul’s list of one-way moves for the first time, with a 12% spike in new arrivals compared to the previous year. These individuals kept their big city, high-paying jobs while migrating to areas with lower costs of living.
This growth is also reflected in Nashville’s population. In 2010, Nashville’s population clocked in at 627,753. Today, Nashville’s current population stands at 1,294,000. From 2010-2020, Nashville’s growth rate was 20.9%.
Other Stand-Out Stats
While the pandemic catapulted Nashville’s growth, other economic and geographic factors aided Music City in its sustained growth.
First, Nashville benefits from more lenient zoning and building laws, making it a hotspot for businesses and corporations to continue fueling an already strong economy. This has contributed to the great migration into the state, as job opportunities have remained high, and unemployment low. Residents also benefit from lower tax rates than many other major cities.
In addition, the Nashville housing market appeals to buyers looking for the best of both worlds in an area that offers city life, space for families, and opportunities to explore the outdoors. With so many established and up-and-coming neighborhoods, there’s something for everyone.
Honing In on Housing
As a prospective buyer in the Nashville housing market, what does its luxury status and population growth mean for you? Especially in today’s market?
An influx of residents and national market trends has inevitably caused prices in Nashville to rise. However, with Davidson county’s higher conforming loan limit of $694,600, you can cash in on a more expensive home while still qualifying for a conventional loan. This means more flexible qualifying requirements and a lower interest rate on a home that would require a Jumbo loan in most other areas of the country. Even if you do choose a home that requires a Jumbo loan in Davidson county, you still enjoy a monthly rate that’s comparable to a conventional one.
What’s Next for Nash?
With its surge in growth, many wonder what is next for the Nashville housing market. Is its growth sustainable? Will the economy rise only to fall? Will the increase in median home prices deter buyers and categorize Nashville with places like New York and Chicago?
The good news is that there are some promising signs that Nashville’s growth is here to stay. Nashville’s average income has kept pace with their median home prices, meaning their economy is staying in equilibrium. Therefore a solid market and affordable housing should be sustainable.
Also, with many young Gen Z and Millenial buyers flocking into the area, it is likely that these new inhabitants will be staying a while. With the opportunity to live in the heart of the city now and then move to a calmer environment like Musfreeboro or Germantown with a growing family, Nashville is a city that its residents can grow with.
Ready to Go?
With a growing city, luxury housing, things to do, a growing economy… Oh, and a team of expert mortgage bankers to help you buy Music City… What more could you ask for? Give UHL a call today to get on the road to your next Nashville home.