10 reasons people and businesses are choosing Nashville today
Writer: Eleana Teran
May 2025 — Nashville’s dynamic growth is reshaping its identity from a music-centric city to a dynamic hub for business and innovation. With a blend of economic vitality, cultural richness, and strategic investments, the city is drawing both individuals and corporations seeking new opportunities.
As cities across the country compete for talent, capital, and long-term resilience, Nashville stands out for its sustained momentum. From Fortune 500 relocations to record population gains, the city is leveraging its assets to grow into a regional powerhouse.
1. Robust population growth driven by migration
Between 2020 and 2024, the Nashville metro area experienced a 6.4% population increase, adding over 136,000 residents, more than double the national average of 2.6% during the same period. This surge is largely attributed to domestic and international migration, with the latter playing a significant role in fueling the city’s growth.
2. Tax-friendly environment attracts residents and businesses
Tennessee’s lack of state income tax contributes to its reputation as a low-tax state, consistently ranking among the top five nationally for the lowest overall tax burden on residents. With a combined state and local tax burden of just 7.6%, the third-lowest in the nation, the state creates meaningful savings for individuals and leaner cost structure for businesses. Its right-to-work laws, low property taxes, and pro-growth policies continue to draw corporate relocations and expansion from across the country.
3. Everyday affordability reinforces livability
Despite rapid growth, Nashville remains relatively affordable compared to other major metros. The city’s overall cost of living remains 1% below the national average, according to RentCafé, with healthcare and transportation costs coming in at 4% and 9% below the average, respectively. As of December 2024, the average rent for a one-bedroom apartment was $1,257, per Apartment List. The state isn’t just affordable — it’s the best state for saving money, according to Bankrate’s 2025 Easiest and Hardest States to Save Money study.
4. Thriving job market powers the region’s growth
Nashville’s economy is strengthened by its diverse job market. The tech sector alone has grown 36.1% over the past decade, and it’s expected to grow another 12% through 2025. While tech jobs make up just 3.6% of the local workforce, Nashville is gaining ground. A CBRE report ranked it No. 10 for brain gain, with over 5,000 more tech jobs than local tech grads over five years, a sign of rising demand. Healthcare remains a pillar of Nashville’s economy, employing 333,000 individuals and contributing nearly $68 billion annually to the local economy. Meanwhile, the industrial sector is expanding, with warehouse labor force expected to grow 11.3% by 2034.
5. Infrastructure investments boost citywide capacity
As the region benefits from the influx of people, infrastructure investment is ramping up to keep pace. According to the Tennessee Advisory Commission on Intergovernmental Relations (TACIR), the state’s infrastructure needs have climbed to $77.7. billion, reflecting nine consecutive years of increases tied to rapid growth, especially in Middle Tennessee. In Nashville alone, $4.6 billion in transportation needs have been identified, and a voter-approved tax will help fund a $3.1 billion capital improvement plan focused on sidewalks, transit, and road upgrades.
At the federal level, Nashville recently secured $9.4 million through the Active Transportation Infrastructure Investment Program to advance the East Nashville Spokes project — a multimodal initiative improving bike and pedestrian connections between downtown and the East bank. Meanwhile, digital infrastructure is also expanding. Earlier this year, Zayo Group announced a $90 million investment to enhance fiber connectivity across the state, targeting underserved communities, educational institutions, and high-growth sectors like AI.
6. Vibrant cultural scene keeps Nashville on the map
You can’t be called Music City without delivering on culture, and Nashville continues to exceed expectations. The city landed at No. 6 on Tripadvisor’s 2025 Best of the Best list of top U.S. destinations, earning high marks for its live music, art galleries ,and historic landmarks. It also ranked No. 7 among top food destinations nationwide, with standouts like Pelato, Henley, and Luogo. AAA also named Nashville one of the top 10 destinations to add to your 2025 travel bucket lists.
7. Educational institutions shape the city’s growth
Nashville’s universities are more than academic anchors — they’re catalysts for innovation and long-term growth. With the highest concentration of colleges and universities in a four-state region, the city benefits from a steady flow of skilled labor, ideas, and economic impact. Vanderbilt University, along with its medical center, contributed over $22 billion to Tennessee’s economy in 2024, supporting more than 120,000 jobs in the Nashville area.
Meharry and Tennessee State University (TSU) are strengthening the healthcare and public health workforce, particularly in underserved communities, while Belmont and Middle Tennessee State University (MTSU) continues to grow its business, music, and healthcare programs. These institutions do more than educate — they generate startups, clinical breakthroughs, and policy solutions that ripple through the local and regional economy.
8. Business climate that supports entrepreneurship
Nashville offers fertile ground for startups and fast-growing companies. The city ranks among the top emerging ecosystems, according to Startup Genome’s 2024 Global Startup Ecosystem Report. Early-stage funding has grown significantly, bolstered by active angel networks, venture firms, and accelerators like the Nashville Entrepreneur Center, which secured over $26 million in funding in 2024, 171% more than the amount raised in the previous year.
Healthtech, music tech, and fintech are all gaining traction, reflecting the city’s cross-industry strengths and startup momentum. Nashville’s healthtech ecosystem, in particular, has become a standout — ranked 24th globally by StartupBlink’s 2024 Global Startup Ecosystem Index, with over 70 active startups operating across digital health, care coordination, AI diagnostics, and provider services. This combination of innovation, mentorship, and access to capital positions Nashville as a supportive environment for entrepreneurs looking to grow their ventures.
9. A lifestyle that makes Nashville easy to call home
Beyond economic opportunity, Nashville’s amenities make it a great place to live. With more than 15,000 acres of parkland and over 100 miles of greenway trails, the city provides everyday access to nature. According to The Trust for Public Land, nearly half of residents live within a 10-minute walk of a park.
Nashville ranked among the top 50 Best Places to Live in the U.S. for 2024-2025 by U.S. News & World Report, and was named No. 5 on Southern Living’s list of The South’s Best Cities for 2025. Cultural events, food festivals, and weekly gatherings in places like Centennial Park or the Nashville Farmers’ Market foster a strong sense of community.
10. More than Davidson County
While Nashville serves as the economic engine, surrounding counties are fueling broader opportunities across Middle Tennessee. Rutherford, Wilson, Sumner, Montgomery, and Williamson counties have all seen population growth since 2023, supported by infrastructure investment, workforce development programs, and targeted business incentives.
Clarksville, just 50 miles northwest, was named one of the Top 50 Best Places to Live and recognized as a 2024 New Boomtown by Money.com. Murfreesboro is expanding in manufacturing and logistics, driven by workforce growth, new investment, and a strategic location. Franklin has emerged as a magnet for corporate headquarters and was named among the South’s Best Cities 2025.
Middle Tennessee’s economic momentum extends well beyond Nashville, offering a connected, competitive region and playing an increasingly vital role in the South’s growth story.
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