Nashville’s housing market remains steady
Writer: Eleana Teran
April 2025 — As Tennessee’s housing market sees a patchwork of trends, Nashville is holding its ground with signs of steady demand despite modest shifts in home prices.
Home closings in the Volunteer state rose 5.3% in 4Q24 compared to the previous quarter and jumped 12% year over year, signaling that buyers remain active even as home construction and vacancy rates cooled across the state, according to the latest statewide housing report from Middle Tennessee State University’s Business and Economic Research Center.
Home prices in the Nashville metro barely moved compared to the previous quarter, but have climbed 4.3% year over year, slightly outpacing the national annual price growth rate of 4%, according to the report, and performing stronger than other metros like Clarksville and Memphis which have seen prices decline.
The Greater Nashville REALTORS® reported continued buyer demand and modest but steady price growth in the region. Residential closings in Davidson County reached 1,928 in 4Q24 — a 7.2% increase from the closings recorded the year prior. Median residential sales prices also rose, from $487,250 to $499,994, a 2.6% year-over-year increase.
Surrounding counties also reflected a strong market. Cheatham County recorded the highest jump in residential median prices in the region, climbing 9.5% from $368,500 to $403,500. Sales volume followed suit with a 16.9% increase.
Williamson County remained one of the most expensive markets in the region, with the median price rising to $983,500 — a 7.7% increase. Sales volume grew by 17.8% to 1,026 from 871 the year before. Rutherford County also saw notable momentum, with residential sales rising from 1,166 to 1,303 and a 6.2% increase in the median sale price.
Several other counties hovered around or slightly below the metro-wide average of 4.3% annual price growth, as reported by MTSU, underscoring the diversity in performance across submarkets. Sumner and Robertson counties posted strong gains as well, with residential closings rising 10.2% and 10.9%, respectively, and median sale prices increasing by 3.5% and 2.6%.
However, not all markets moved in the same direction. Dickson County saw an 8.5% decline in residential closings, while Wilson County recorded a 1% drop in its median home price — the only county in the region to have a year-over-year decline in residential prices.
Housing activity is a key indicator to economic health, with real estate overall contributing $84.2 billion to Tennessee’s Gross State Product, accounting for 15.7% of total state economic output, according to the National Association of REALTORS®. Nationwide, the industry made up 18% of GDP, totaling $5 trillion.
Each home sale in Tennessee generates an average of $120,600 in economic impact, including income from real estate services, spending on home furnishings and renovations, and ripple effects across sectors like retail, finance, and construction.
For more information, please visit:
https://www.mtsu.edu/
https://thda.org/
https://www.greaternashvillerealtors.org/
