Nashville, Tenn. has blossomed into one of the nation’s most dynamic real estate markets, driven by a thriving economy, an exploding population and continued tourism expansion. That elevated economic activity supports the need for long-term and short-term housing as job-seeking new residents and vacationers look for places to stay in and around Music City.
Whether you’re a new investor or an old hand at buying properties, when you’re looking at where to put your money, you might be wondering: Is Nashville a good place to invest in real estate?
To be successful, you want residential or commercial properties that provide a steady stream of income, appreciate over time and offer tax incentives that allow you to keep more of what you earn. With all that in mind, the Music City real estate market might be that investment for you. To help you decide, consider the following factors.
Overview of the Nashville Real Estate Market
After nearly four years that favored sellers as home prices rose fast amid tight supply, the Nashville housing market has corrected and is now more balanced, providing more opportunities for buyers and especially investors.
However, the homebuying marketplace remains competitive in the 14-county area that makes up the Nashville metropolitan region. That means buyers and sellers must adjust strategies, but deals are still getting done.
Through May 2025, the median home price in Nashville rose 1.9% (to $489,320) over the price of a home the year before. However, homes are staying on the market 54 days — seven days longer than in May 2024 — and 182 fewer homes were sold the same month this year than the 1,128 sold the previous May.
While closings are down year over year, the number of closings has increased each month this year through May 2025, indicating significant buyer interest and signaling the adjustments investors may need to make to their strategies.
The average home value in Nashville fell 0.6% in May to $447,647 but remains well above the national average of $367,969.
“Emerging Trends in Real Estate 2025,” the PricewaterhouseCoopers and Urban Land Institute’s highly regarded annual report of ranked markets to watch, places Nashville in the No. 5 spot on its coveted list.
Types of Investment Properties in Nashville
Nashville’s growing diversity extends to the types of investment properties that are available. From residential (single-family houses, condominiums and multi-family units) to commercial (office and retail space, apartment complexes and industrial buildings), the Nashville real estate market offers something for every investor.
On top of its booming economy and growing population, the area is also a tourist destination for sites like the Grand Ole Opry and the Country Music Hall of Fame, adding vacation rentals into the mix of potential property investments.
As an investor, you can pursue stable, long-term growth by investing in single-family homes as the strong economy continues to draw young professionals and other workers to the region. That can take you from new construction in East Nashville to fix-and-flip properties in the historic charm of Sylvan Park west of downtown.
The region’s rise as a new settlement for young professionals, families and retirees has raised the stakes on property management in Nashville to stay on top of market trends and other factors impacting rental rates and property values.
Condos and office space in downtown Nashville allow you to take advantage of the vibrant tourism scene of music venues, restaurants and retail shops that attract locals and tourists.
The Nashville-Davidson-Murfreesboro-Franklin metropolitan area, which is relatively affordable compared to other major metropolitan areas of the U.S., draws workers in healthcare (at Vanderbilt University Medical Center and Ascension Saint Thomas), technology (at Amazon and Oracle) and automotive (at Nissan North America and Bridgestone Americas), as well as insurance and investments.
In 2024, the Nashville metro area ranked ninth in the U.S. for population growth, with residential and commercial real estate keeping pace.
Pros and Cons of Investing in Nashville Real Estate
Like any investment, the Nashville real estate market presents you with benefits as well as risks. Consider the following pros and cons:
Pros
- Diverse and growing economy
- Robust population growth
- Potential property appreciation
- Diverse portfolio of properties
- No state income tax
Cons
- Competitive market
- High mortgage rates
- Rising property prices
- High property taxes
Best Places to Invest in Real Estate in Nashville
Whether you are looking at rental yields, potential for appreciation or affordability, the Nashville area offers something for just about every type of real estate investor. With a population growth fueled by a robust job market and business relocations, pressure for additional housing and expansion of infrastructure continues to make Nashville a solid market.
Opportunities stretch from short-term rentals in the downtown Nashville neighborhood of South of Broadway (SoBro), where entertainment comes alive nightly, to historic and modern homes in East Nashville and high-end rentals in Germantown.
The affordable new construction in The Nations neighborhood attracts young families and young professionals, while Antioch and Donelson offer multi-family units for investors seeking higher rental yields.
In and around core Nashville, you can search for a range of properties in North Nashville, Sylvan Park, Bordeaux-White Creek, Charlotte Park and Madison. Brentwood and Franklin offer prime rental opportunities in the suburbs with their excellent schools and other amenities that draw in families and professionals.
Other outlying areas, such as Belle Meade, Forest Hills, Hendersonville, Mount Juliet, Murfreesboro and Nolensville, may attract families who still want a short commute to Nashville.
It’s crucial to conduct thorough market research. However, Nashville’s vibrant culture and growing economy keep pressure on the demand for rentals, and property values are rising. Properties in many areas remain affordable compared to other U.S. markets.
Decide Whether Nashville Fits Your Investment Goals
You now have the answer to the question: Is Nashville a good place to invest in real estate? Situated in North Central Tennessee, Nashville is the state capital and the largest city in the state. Its real estate market, more balanced after years of rapid appreciation, is supported by strong job and population growth.
With answers about Nashville’s real estate investing market, you can now decide whether buying into the market fits into your investment portfolio.
Frequently Asked Questions
Is Nashville real estate a good investment?
The Nashville real estate market is considered a great place for residential and commercial investment. Relatively affordable living, a desirable lifestyle and a growing job market driven by healthcare, education, technology and tourism continue to attract tens of thousands of new residents each year.
Is Nashville a good place to be a real estate agent?
Real estate agents consider Nashville a good market because of its continued population growth and thriving economy. In 2024, a real estate agent in the 14-county Nashville metropolitan area earned an average of $110,531, and the region has grown to 2.1 million residents.
What is the outlook for Nashville real estate in 2025?
Like many other real estate markets around the country, Nashville’s real estate market has moderated from years of red-hot appreciation, with a more balanced market for buyers and sellers expected for the rest of 2025. Prices are projected to continue rising, but at a slower pace, with additional inventory becoming available.
