Nashville’s real estate market is showing signs of a quiet but steady recovery, with multifamily properties leading the charge. According to CBRE’s latest outlook, the city is past the peak of its recent construction boom, and new deliveries are slowing down. That means the oversupply that pressured rents and occupancy in 2024 is easing, and both are expected to improve through 2025 and into 2026. Rent growth is picking up, with CBRE forecasting annual increases of about 3.1% over the next five years, outpacing the national average. The cost to buy a home in Nashville remains steep compared to renting, with mortgage payments running more than twice the average rent, which is keeping demand for apartments strong.
Investor activity in Nashville is also shifting. Realtor.com’s midyear report shows that while overall home sales dipped slightly in the second quarter of 2025, investor purchases held steady. Investors are still willing to pay premiums in high-demand areas like Nashville, where rental demand remains robust. They’re also targeting affordable entry-level properties, especially in neighborhoods with stable rental yields. The net effect is that investor competition with regular buyers has intensified, and inventory remains tight in many parts of the city.
On the single-family side, the market is starting to see more movement. Mortgage rates have come down from their highs, giving buyers a bit more breathing room. Realtor.com and Redfin both report that more homeowners are listing their properties, and buyer activity is picking up. Still, the pace is moderate, and experts from Fannie Mae and the Mortgage Bankers Association expect only steady, not explosive, growth heading into 2026.
One trend to watch is the rise of build-to-rent communities. These single-family rental neighborhoods are expanding fast, with Yardi Matrix research showing they now make up a growing share of new multifamily completions. They’re especially popular in the suburbs, where families want more space without the commitment of ownership.
All in all, Nashville’s housing market is moving out of its post-pandemic slump and into a more balanced phase. Rents are rising, vacancies are falling, and both buyers and renters have more options than they’ve had in years.
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