Nashville, TN

The outlook for the Nashville market has not changed significantly since our last report. After unprecedented growth, we expect construction to taper off in the coming years, as population growth slows.

Other sectors are expected to remain relatively steady, as new residents need schools, hospitals, and roads. The number of trade workers has increased through 2021 to meet the peak in demand and it is unclear what will happen when it declines. Some will likely move throughout the region and push labor costs down there as well. 

Nashville’s economy grew so fast in the 2010s that it has become a modern-day boomtown. By 2016, it had more than $2 billion in real estate under development. By 2017 more than 100 people were moving in every day. A lot of this growth took place outside the city of Nashville itself, which has created many disparate communities bound together by the existing highway network. This has kept housing costs from rising too much and schools and hospitals from being too overloaded, but providing key services across almost 20% of Tennessee will be a challenge.  

* Other structures include religious buildings, amusement, government communications, and public recreation projects.