While Nashville is known for its Country music scene, investors are often pleased to hear Tennessee’s capital is also home to a booming real estate market. Residents from all over the U.S. are drawn to the city’s low cost of living and growth in the technology sector and other jobs, driving demand for housing. As more people move to the Music City, investors are likely to see greater opportunities to put money toward Nashville investment properties.
Here are four smart reasons to invest in real estate in Nashville:
1. Affordable real estate
Hagan Stone, president of the Greater Nashville Association of Realtors, wrote in The Tennessean that the local real estate market is full of buyers beaming with confidence. Buyers can choose affordable properties in a healthy market of single-family homes, which are a popular choice among renters.
According to another report by housing price website Local Market Monitor, Nashville landed in the No. 4 spot for single-family real estate investment properties. Families moving to the area demanding single-family homes will enjoy the activities available in the area as the city was named the top city for those married with kids by Kiplinger’s Magazine.
2. High employment rate
Another major reason why Nashville is attractive to tenants is its low unemployment rate, which is one of the many signs of a strong local economy. The skilled labor in the area attracts major businesses, including Fortune 500 companies, such as Dell. The Nashville area also benefits from government subsidies that help grow businesses.
Fred Cosgrove, Investment Location Manager for HomeUnion for the greater Tennessee market, described Nashville as a middle Tennessee economy.
“The economy here is divided among financial and medical service and administration companies, as well as businesses focused on the geographic location and product distribution,” Cosgrove said.
With its pro-business environment, it is no wonder that companies like Southern Company and The Coca-Cola Company have headquarters there. The jobs created by these companies are likely to bring more residents to Nashville and increase demand in the real estate market.
3. Low cost of living
Young people packing their bags to join up with tech firms or attend one of the many educational institutions in Nashville are often surprised to learn of the city’s low cost of living. While Nashville is the second largest city in Tennessee after Memphis, it is still less expensive than other metropolitan areas around the country. The job growth in Nashville combined with its low cost of living make it ideal for young professionals looking for greater economic freedom.
4. Ideal geographic location
Infrastructure is often a key reason why businesses decide to relocate or build new facilities. Located in the middle of Tennessee, Nashville is geographically ideal for companies looking to improve their reach across various parts of the country.
“Distribution [operations such as] Ingram Barge and DK (Ingram company, Amazon) product distribution, trucking and retail sales are here because of the geographic location and access to most of the markets in the U.S.,” Cosgrove said. “[There’s] equal time to access the Midwest and the East Coast. Tractor Supply and Dollar General are based here due to geography. O’ Charley’s, Logans Roadhouses, Cracker Barrel, Shoney’s restaurants have major administration and franchise management here.”
The city’s downtown is where three main interstate highways, I-40, I-65 and I-24 meet up. This easy access to major roadways allows companies to reduce the headache of transporting goods where they need to go.
With these reasons causing more companies and residents to move to Nashville, investors should pay attention to the real estate opportunities right in front of them. As more demand grows, Nashville investment properties are likely to be snatched up quickly. Consider working with a trusted real estate investment firm for the right guidance in this thriving market.