NASHVILLE, Tenn. (WTVF) — Buying a home in Music City is going to cost you, in fact, Zillow reports the typical home value of homes in Nashville is now a little over $428,000.
Even if you have the money, it’s hard for locals to compete with people moving in from out of state.
A study from Redfin revealed in 2021 the average out-of-towner moving to Nashville had $736,900 to spend on a home, 28.5% higher than the $573,400 average budget for local buyers. That’s the biggest gap among the cities included in their analysis.
This means the influx of out-of-towners with big budgets is contributing to the rise in home prices, pricing out many locals.
The study found Nashville home prices remain lower than many expensive coastal cities but were up 22.6% in December 2021 from the year before, forcing many Nashvillians to continue renting.
A Nashville Redfin agent said it’s hard for locals to compete right now, and it can be devastating for first-time buyers who aren’t able to offset high prices by selling a home before they buy a new one.
The agent says since there’s no state income tax and with more companies allowing employees to work from home, don’t expect this trend of out-of-towners moving to Music City to slow down anytime soon.
