Nashville, TN Housing Market
AI-powered market intelligence for the Nashville-Davidson--Murfreesboro--Franklin, TN metro area.
PropertyIQ Scores
Nashville, TN Market Analysis
Market Overview
Nashville’s housing market currently reads as weak, with a PropertyIQ Score of 26 out of 100. The top score drivers tell the story: 12-month home value momentum is only 1.67%, while 3-month momentum has turned negative at -0.87%. Median days on market sit at 58 days, and 21.0% of listings have had a price cut. These factors point to softening demand relative to supply and limited short-term price support.
Compared with Tennessee state averages, Nashville’s housing costs are elevated. The median home value is $455,444, well above the state average of $336,508. The rent index is $1,820, compared with $1,122 statewide. At the same time, the local economy shows relative strength: the unemployment rate is 3.1% versus 3.5% statewide, and median household income is $82,499 versus $67,097. Population growth is not available in the provided data, so the demographic demand picture is incomplete.
Taken together, Nashville’s higher income and lower unemployment are not translating into home value momentum. The gap between local home values and incomes, along with negative recent price movement and elevated price cuts, keeps the overall market position weak despite those positive economic benchmarks.
Key Trends
One key trend is weakening price momentum. The 12-month home value momentum is positive at 1.67%, but the 3-month momentum is -0.87%. The listed year-over-year home value change of -$1 also points to essentially flat price movement over the year. This recent turn suggests that any annual gains are concentrated earlier in the period and that prices have softened more recently.
A second trend is rising seller competition. With 12,192 homes for sale and a median of 58 days on market, homes are taking time to move. Additionally, 21.0% of listings have had a price cut, which indicates that many sellers are adjusting expectations to attract buyers. That is a meaningful share and aligns with the weak PropertyIQ Score.
A third trend is an affordability gap relative to the state. Nashville’s median home value of $455,444 is about 35% above the state average, while median household income of $82,499 is about 23% above the state average. The rent index of $1,820 is roughly 62% above the state average of $1,122. Housing costs in Nashville are outpacing the local income advantage, creating affordability pressure even with a relatively strong labor market.
A fourth trend is economic resilience that has not yet lifted housing momentum. The unemployment rate of 3.1% is below the state’s 3.5%, and median household income is above the state benchmark. These are typically supportive of housing demand, but the negative 3-month price momentum, longer days on market, and price cut share show that this economic strength is not currently producing upward price pressure.
Who Is This Market For
Given the weak score and current metrics, Nashville may suit patient buyers and long-term rental investors more than short-term flippers or sellers expecting rapid appreciation. The median home value of $455,444 is high relative to the median household income of $82,499, which may make first-time buyers cautious. However, with 21.0% of listings cutting prices and a median of 58 days on market, buyers may have more room to negotiate than in a faster-moving market.
Long-term rental investors may find the rent index of $1,820 attractive compared with the state average of $1,122, especially with a low unemployment rate of 3.1% supporting tenant demand. Still, the negative 3-month home value momentum of -0.87% and only 1.67% 12-month momentum suggest limited near-term appreciation. Move-up buyers may benefit from negotiating on their next purchase but could face longer sale times on their current home. This is not a market profile that strongly favors speculative, quick-turn activity.
Outlook
The current data point to continued softness in Nashville’s housing market, at least in the near term. With 3-month home value momentum at -0.87%, 21.0% of listings showing price cuts, and median days on market at 58, sellers are likely to continue facing competition. The 12,192 homes for sale add to that competitive pressure. At the same time, the 12-month momentum of 1.67% and a low unemployment rate of 3.1% may help prevent sharper declines. Because population growth is not available, the demand outlook cannot be fully assessed. Overall, the numbers support a buyer-favorable environment unless inventory, price cuts, or momentum shift.
AI-generated analysis based on current market data. Last updated August 30, 2026.
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Nashville, TN market data
Nashville, TN Housing Market Overview
Nashville, TN's median home value is $455K, up 1.7% over the past year. Homes here sell in a median 58 days. Its PropertyIQ Score of 26 sits below the state average of 50, marking a market positioned to lag its state over the next three years.
Understanding the Nashville, TN housing market requires looking beyond headline price figures. The PropertyIQ Score reads both sides of market strength: Zillow price momentum across 3- and 12-month windows, and Realtor.com flow signals — days on market and the share of listings with price cuts. Together they predict how this TN metro is set to perform relative to the rest of its state.
Southeastern markets benefit from manufacturing investment, logistics infrastructure, and relative affordability compared to national averages. The region's population growth — driven by both domestic migration and natural increase — supports sustained housing demand across metro and suburban areas. Within the Southeast, Nashville, TN's PropertyIQ Score of 26 runs below the Southeast norm.
Tennessee's no-income-tax status and central location have fueled Nashville's rise as a corporate relocation destination, while Memphis and Knoxville offer more affordable alternatives with their own economic drivers.
Each month, PropertyIQ updates its score for Nashville, TN using four inputs: Zillow ZHVI twelve-month and three-month momentum, Realtor.com median days on market, and the Realtor.com share of listings with price cuts. These four signals are combined into a single 1 to 99 score computed across all metro markets and calibrated so 50 represents the state average, making it a direct read of how this market is positioned to perform relative to its state. Momentum here has been positive, with home values up 1.7% over the past year.
View Nashville, TN's complete market profile including historical price trends, score history, and AI-generated analysis. Compare this market against any other US metro to find the best opportunities for your investment strategy.
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Market data through July 2026. Sourced from Zillow, Realtor.com, Redfin, U.S. Census Bureau, FRED, BLS, and BEA. Per-statistic source and date shown above.
Frequently Asked Questions
Is Nashville, TN a good place to buy real estate in 2026?
PropertyIQ doesn't label markets simply good or bad. Instead, the PropertyIQ Score measures a market's demand momentum against its own state, where 50 marks the state average. Nashville, TN currently scores 26, a weak-momentum reading that leaves it positioned to lag its state over the next three years. For buyers, cooling demand usually brings more inventory, longer sale times, and real leverage to negotiate on price. Backing that up, the median home value here is $455K, up 1.7% over the past year. So whether Nashville, TN is right for you comes down to your goals: a rising-momentum market can favor long-term appreciation but offers less room to negotiate, while a cooling one hands buyers more leverage. Treat the score as a timing signal to weigh alongside your budget, holding period, and plans for the property, not a verdict on the market's quality.
What is the PropertyIQ Score for Nashville, TN?
Nashville, TN's PropertyIQ Score is 26, indicating weak momentum on a 1-to-99 scale. The score distills four transparent inputs into a single number: Zillow home-value momentum over the past 12 months, Zillow home-value momentum over the past 3 months, the median days homes spend on the market from Realtor.com, and the share of listings with a price cut, also from Realtor.com. Rising values and faster sales push the score up, while slow sales and frequent price cuts pull it down. The scale is calibrated so 50 equals the state average, meaning a score above 50 predicts the market will outperform its state over the next three years and a score below 50 predicts underperformance. PropertyIQ computes the score across every US market nationally, then recenters it against each state, so 26 places Nashville, TN below its state benchmark.
Are home prices in Nashville, TN rising or falling?
Home prices in Nashville, TN are rising. Over the past year, the median home value increased 1.7%, reaching $455K. Over the latest three months, values slipped 0.9%, a sign near-term demand is softening. PropertyIQ derives these figures from Zillow's home-value index, which tracks the typical value across the market rather than only the homes that happened to sell, giving a steadier read than a raw median sale price. Both the 12-month and 3-month momentum readings feed directly into the PropertyIQ Score, so this price trend is one of the core signals behind Nashville, TN's current score. Keep in mind that appreciation can vary widely by neighborhood and price tier across the metro area, so treat these figures as the market-wide baseline rather than a guarantee for any single property.
How quickly do homes sell in Nashville, TN?
In Nashville, TN, homes sell in a median of 58 days from listing to pending sale, based on Realtor.com market data. Median days on market is one of the clearest real-time reads on local demand: when homes move quickly, buyers are competing and sellers hold the advantage, while lengthening timelines signal cooling interest and more room to negotiate. Alongside sale speed, about 21% of active listings here have taken at least one price cut — a complementary demand gauge, since a rising share of reductions often precedes slower sales and softer prices. Both median days on market and the price-cut share feed directly into the PropertyIQ Score, where faster sales and fewer cuts push the score higher. As a general guide, medians under about 30 days indicate a brisk, competitive market, while medians well beyond 60 days point to buyers regaining leverage. Actual time on market still varies by price band, property type, and season, so treat the median as a market-wide baseline.
How current is this metro area data?
This Nashville, TN market data is refreshed on a monthly cycle, with the latest figures current through July 2026. PropertyIQ ingests fresh data every month from a range of authoritative sources: home values and rents from Zillow, days on market and price-cut activity from Realtor.com, additional housing signals from Redfin, demographic and housing-stock data from the U.S. Census Bureau, mortgage and macroeconomic series from FRED, and employment figures from the Bureau of Labor Statistics and the Bureau of Economic Analysis. The PropertyIQ Score itself is recomputed every month once the new source data lands, so the score and its four underlying inputs always reflect the most recent complete reporting period rather than a static snapshot. Because official housing data is typically released with a short lag, the current-through date usually trails the present by a few weeks, which is normal across the industry and not a sign the data is out of date.