Nashville, Tennessee has become one of the hottest real estate markets in the US in recent years. With major companies like Amazon and AllianceBernstein moving in along with strong job and population growth, demand for Nashville real estate is skyrocketing. This presents lucrative investment property opportunities, especially for out-of-state investors who can capitalize on property cash flow and appreciation. Key factors driving returns include Nashville’s business-friendly policies, lack of state income tax, and vibrant entertainment scene.
Nashville rent and home prices surging with economic boom
According to real estate data firm Zillow, Nashville home values have increased 114% over the past decade, more than double the national rate. Rents are also rising rapidly, with the median rent in Nashville now $1,719 per month. With high demand from new residents and limited housing inventory, real estate investors can achieve strong rental yields and capital appreciation on Nashville investment property purchases.
Favorable property taxes encourage real estate investing
Tennessee has no state income tax, making Nashville area real estate investment especially tax-advantaged compared to other major cities. Property taxes are also reasonable, with an effective property tax rate around 0.7% in Nashville. Investors may also qualify for tax breaks designed to encourage rental housing construction and rehabilitation.
Strong Nashville job growth powers housing demand
Driven by corporate expansions and small business growth, job creation in Nashville averaged 94,500 new positions per year from 2010-2019. With high-paying jobs in technology, healthcare, and finance attracting skilled workers from across the country, housing demand will likely remain strong for years to come. Investors can target property purchases near major Nashville employers to maximize rental demand and home value appreciation over the long term.
With home prices and rents rising faster than the national average, low property taxes, and years of pent-up housing demand ahead, Nashville real estate presents a compelling investment opportunity. Savvy investors are taking advantage by purchasing investment property to generate rental income and benefit from large capital gains over time.