Markerr looked at Nashville, TN to evaluate whether the MSA is a good bet for MFR and SFR investors, developers, property owners and operators. We found that while excess demand for employment will likely be absorbed by current rates and future supply, there are still Zip Codes that will outperform, making this area worthy of a second look.
Market Snapshot: Nashville, TN
The Nashville-Davidson–Murfreesboro-Franklin region is a large MSA that is home to about 1.9 million residents. People continue to flock to the area for its widely lauded country music scene, Vanderbilt University and the absence of state income tax. The area has outpaced the US average in employment and growth of median income.
Nashville is Highly Desirable for Employers, Employees and Developers
Population growth in the Nashville areas has been an astounding 25% over the past five years. Markerr analysis shows that it’s a desirable location for young people seeking employment and employers who enjoy a big talent pool and the flat corporate tax.
Markerr Identified Nashville’s Top 5 Zip Codes for Employment and Employer Growth
The 37207, 37174, 37167, 37066 and 37188 Zip Codes are suburban, align with market average media incomes and exhibit outsized growth in both employment and employer growth. Employment metrics, along with the income and demographic data, indicate that these Zip Codes will likely have higher future rent growth.
Our Hiring Data Shows Continued Growth for Nashville
Markerr’s Hiring Data is a glimpse into the future of employment at the market level. It shows the top hiring companies by number of job postings, as well as a look into different salary bands. Our data shows there are job positions in a myriad of different sectors with health care and retail topping the list. The weighted average of the median salary for the hiring data across Nashville is $68,000, which is 40% higher than the current median salary of $48,500.
Markerr Recommendation: The Gulch
We suggest that Class A Investors pay particular attention to The Gulch, an area located in downtown Nashville that has already been gentrified. The Gulch is home to an extremely high concentration of 25-34 year olds and above-average earners. The neighborhood has seen faster population growth relative to the surrounding MSA. The employment situation is heavily weighted toward high-paying professional job categories in science and technology. This US Census tract highlights the real-time updates of key metrics down to granular areas that Markerr provides with the Location Insights Dashboard.