Let’s dive straight into the latest regarding Nashville’s real estate and housing scene—a market buzzing with changes and speculation, but one that, frankly, has more than its fair share of headaches for buyers and builders alike. According to Fox 17 News, the city is still stuck in a housing market slump as we head into the end of 2025, with affordability issues that just won’t quit. The freeze that locked up buying and selling activity last year rolled right into this one, making it one of the slowest stretches since the roaring ‘90s.
When it comes to building new homes, the city isn’t catching much of a break either. Builders have cut back development sharply in the face of “a challenging financial environment,” say Fox 17 News, and that’s in no small part because construction costs and stubbornly high interest rates are squeezing the market on both ends. The migration wave that made Nashville a darling for remote workers during the pandemic has lost its shine; as The Tennessean points out, affordability’s eroding, and with prices climbing while activity lags, residents are feeling the pinch like never before.
But here’s a twist—the Metro Nashville Council this week passed new zoning reforms aimed to reshape how affordable housing gets added to the city, with planners hoping to bring in tens of thousands of new homes by 2034. The city’s Unified Housing Strategy found Nashville needs about 90,000 new homes by then, but the current zoning caps us around 70,000, leaving a sizable gap. The president of Greater Nashville Realtors is betting big on these reforms, touting them as “crucial steps” but making it clear that they won’t be a magical fix. It’s going to take teamwork between Realtors, city officials, and developers for anything meaningful to happen.
Over in the multifamily sector, Northmarq reports that supply is tapering off, vacancies sit at about 8%, and rent growth is bouncing back, which could be a sign of stabilization. Investment cap rates are floating around the mid-5% range—nothing wild, but definitely less frothy than the peak boom years. Meanwhile, HBS Dealer says that active listings surged another 15% year-over-year in October, marking the twenty-fourth straight month dealers have added inventory, though that pace is slowing down.
Neighborhood-level trends echo the broader story. Take Donelson-Hermitage-Old Hickory: Redfin data shows homes are lasting longer on the market—about 57 days on average, up from 47 last year—while the median sale price hovers at $395,000, pretty much flat compared to last year. Some homes draw multiple offers but, by and large, buyers are getting an average of 2-3% below list price. A glimmer of competition, but not the frenzy of the recent past.
Speculation is rampant about what next year might bring, especially as new supply, policy changes, and economic uncertainty all collide. Zillow and other outlooks hint at a more stable and balanced market for Tennessee ahead, but that optimism is tempered by persistent affordability crises and builders’ caution.
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