Are you thinking about buying or selling a home or are a real estate professional in the Nashville area? Buying, selling, or listing a home in today’s real estate market is a challenging decision with many factors to consider.
As a real estate professional, it’s essential you understand your local market. Homebuyers and sellers want to have as much information as possible, and it’s a great way to show off your expertise. To help with this, we put together a 2023 Nashville real estate market forecast to keep you in the know.
2023 Nashville population growth projections
Based on the American Community Survey estimates, the population in the greater Nashville Metropolitan Statistical Area is just over 2 million. As a whole, the state of Tennessee will likely see almost 1 million new residents by 2040, with the Nashville Metropolitan Statistical Area making up 57% of the state’s population increase—growing by 563,000 people.
Nashville home prices and sales
In December 2022, the median sales price of homes in Nashville was up 8.5% compared to 2021, at $445,000. However, the number of homes sold in December decreased by 38.3% and days on the market increased by 19 to an average of 53 days.
Based on the data gathered by Greater Nashville REALTORS® for December 2022, homes spent an average of 46 days on market with residential homes selling for a median price of $470,000. They recorded a total of 2,568 closings across residential, condominium, multi-family, and land listings, which is down 40% from December 2021. There was a total inventory of 8,204, with residential listings making up 5,837. As a whole, active listings were up 126% to 2021.
2023 Nashville housing market outlook
After compiling their 2022 Annual Home Sale Report, Greater Nashville REALTORS® believe 2023 will be a buyers year. As inventory across the Nashville metro area begins to grow and homes stay on the market longer, buyers will have the upper-hand.
According to Realtor.com, sales growth in 2023 for the Nashville market will decrease by 3%, but the price of homes will increase by 5%.
As the market shifts, it’s essential that any home that’s listed is ready for sale and in good condition. Due to the competitive nature, real estate professionals in Nashville will need to be aware of the local market and any fluctuations that could impact both buyers and sellers.
Average rent in Nashville, TN
As of January 2023, the average rent for a 1-bedroom apartment is $1,802, which is up 18% from last year.
The rental market in Nashville will likely remain hot throughout 2023. Higher interest rates, along with higher median home prices, makes buying a home difficult for many first-time homebuyers, or those looking to list and buy. As 4-bedroom rentals make up a large part of Nashville’s inventory, you can expect single-family rentals to continue to grow.
Cost of living
MIT’s Living Wage Calculator estimates that an adult with no children in Nashville needs to make at least $16.98 an hour, or an annual income of $35,312 before taxes. As Nashville has a booming rental market and home average home prices, it’s no surprise that housing is the biggest expense, estimated at $11,789 a year.
The cost of living in Nashville is 2% lower than the national average. Not surprising, housing is 4% higher, but utilities, transportation, and groceries are all lower. Compared to Tennessee as a whole, Nashville is typically 5% to 7% higher.
Need real estate photos in Nashville, TN?
Apart from knowing the ins and outs of your market, it’s essential to have professional real estate photography for your listings. Not only do professional real estate photos create a cohesive brand across all your listings, but they can help you sell your listings faster and for more money!
If you’re interested in professional real estate photography in Nashville, Virtuance has you covered, from 3d tours to our HDReal® images and more.
