Nashville's Job Market Means Good Business for the Real Estate Market
Nashville’s Job Market Means Good Business for the Real Estate Market
The music industry isn’t the only thing booming in Nashville. Enjoying steady job growth, more and more people from throughout the country and around the globe are starting to call Music City home. This is great news not only for happy transplants but also for the Nashville real estate market and the local economy.
In May, Nashville nabbed one of the top positions on Forbes’ annual rankings of best cities for jobs. And unlike list leaders San Francisco and the Bay Area, Nashville’s booming economy relies on more than the potentially overhot tech industry. Forbes reports, “The growth of domestic migration has sparked job gains in fields such as construction, retail, education and health, as well as steady growth in business services.”
To claim its spot, Nashville hurtled over Dallas and Austin with a 2015 job growth of 3.4 percent and an impressive five-year growth of more than 20 percent.
This summer, nonpartisan policy research organization, the Brookings Institution, reported that Nashville ranked No. 1 in employment growth between 2013 and 2015. Nashville’s advanced industries employed more than 82,000 people at the end of the period and enjoyed a 7.9 percent annual job growth—which is significantly above the national average of 2.5 percent.
And as a cherry on the sundae, the US Census Bureau recently released the results of the 2015 American Community Survey, which helps municipalities, businesses, and community leaders better understand the scope of changes happening within their communities, and Nashville fared very, very well. On the city’s ranking, the Wall Street Journal wrote, “To find those cities where median household incomes are rising the fastest, look to the South. Among America’s 50 biggest metropolitan areas, the biggest household income gains were witnessed in Nashville.”
Just what does all of this great economic and job growth news mean for Nashville’s real estate industry? Happy tidings.
Nashville’s Real Estate Market Tops Industry Lists
In light of all the powerful economic data pouring in from a wide range of sources, it’s no surprise that Nashville’s housing and commercial real estate market is also on the rise.
The Nashville Business Journal noted that median sales prices for closings in the Nashville area were the biggest for any month on record and that the number of closings in the first quarter of the year had risen by 10 percent; putting Nashville just behind Seattle and Portland as the hottest housing market in the nation.
While considered a “secondary market,” Nashville boasts a lower cost of living than many major cities and offers great value for the money and strong potential for growth.
In the 2016 annual report published by PricewaterhouseCoopers and the Urban Land Institute, the outlook for markets like Nashville is optimistic: “Value-add investors can access multiple sources of real estate financing from insurance companies, CMBS lenders, private equity firms and cross-border investors. With this positive liquidity profile and socioeconomic fundamentals, asset selection in secondary markets [like Nashville] should pay off a a 2016 strategy.”
If you’re considering investing in the Nashville real estate market, or to learn more about our services, contact Canopy South Capital Management.