Nashville Real Estate Trends 2021 Review

[David Goodman]

This is what’s happening in the greater Nashville area according to Freddie Mac’s Home Price Index (FMHPI) report:

• Average home prices from 2021-2022 increased 22%
• Average home prices in the last 5 years increased 67.4%

Average rents have increased in Nashville 10% year over year. Rents naturally lag behind, but I'm confident they will catch up! I speak to a few newish out-of-state investors every week that are hesitant to ender our market because they can't find that 1% deal. Unfortunately even properties found off the market are selling at a retail price. And it makes sense. Nashville is poised to continue this growth for a variety of reasons. If you'd like to read more on why the Nashville market in line to continue this growth check out Jeff Rohde’s article from RoofStock.com.

https://learn.roofstock.com/blog/nashville-real-estate-market

My first property was a single family home in south Nashville that I bought for market value. My neighbors couldn't believe what we spent on that home. Fast forward 6-7 years later, and that property is now worth more than double what we purchased it for. And guess what, it rents out and cash flows just fine now. Of course we were in a different position back then because my wife and I house hacked the home for the first 2 years. We lived upstairs and our tenant lived downstairs. By the time we were ready to find our next home, rents finally caught up and we were ready to make the next move! I can't recommend this strategy enough for anyone who's looking to get their start in real estate. It's a life changing move you won't regret.

So if your a newer investor that's looking that's primarily interested homes that have high cash flow on day one, Nashville probably isn't your market. But if your an investor that as the ability to buy and hold, I think Nashville is the market for you. Prices are still relatively low compared to many metropolitan areas, and we are on the growth train.

Are you guys as optimistic as me? Any predictions on what we'll see from the Nashville market in 2022?