NASHVILLE, TN (WSMV) - Even a global pandemic can't cool off the hot housing market that Nashville has seen lately. Last year, housing market gains across the country were the biggest in 15 years, despite a global pandemic.
Real estate across the country gained nearly $2.5 trillion in value in 2020. That's the most in a single year since 2005, according to online housing market giant Zillow.
This year is expected to be even stronger, with heavy buyer demand pushing prices higher. It's something we've seen in Nashville, even before the pandemic.
"One of the reasons we've seen such rapid growth in prices of home values is a number of factors contributing to high demand," explains Chris Glynn, Senior Economist at Zillow. "Which are extremely low-interest rates, a wave of millennials that are aging into homeownership for the first time, and households reevaluating their needs amid COVID-19, whether that means an additional office space, a new living space, or a bigger backyard."
Last year in Nashville, home appreciation values grew by $12 billion across the city. Making Nashville the 30th most valuable city in the country when it comes to the largest metro cities in the U.S.
In a survey of real estate experts and economists conducted by Zillow, Nashville ranked third for cities that are most likely to outperform the U.S. housing market in 2021. "Our panel of experts had a high degree of confidence that Nashville will be a leading market in 2021," said Glynn.
Music City is only trailing behind Austin, TX, and Phoenix, AZ, to the nation's hottest real estate markets.