Are you looking to buy or sell?


An old adage says, "there is no time like the present." One beautiful thing about the real estate market in Middle Tennessee and the vast majority of the state is its strong stability compared to other markets nationwide. While, in TN, we still have up and down fluctuations, the rate of those fluctuations is far less drastic than in many other areas around the country.


Naturally, you may be asking why is the market in Nashville, Middle Tennessee, and throughout most of the state so stable compared to others that see far more volatility.


Diverse industry:


Many cities and states centralize their focus around a single or few tightly related industries. For example, there is currently a mass exodus from California. While many will point to politics as the primary reason so many are leaving, and this certainly holds validity for some, others are now finding it is in their best interest to escape uncertainty because the primary industry (technology) is in a period of mass layoffs. Technology companies can no longer afford to pay exorbitant taxes and wages, two of the greatest business costs. Are these businesses shutting down? In some cases, yes, but in most cases, they are simply reorganizing and looking for better, more cost-effective markets to conduct business. No personal state-level income tax, access to a plethora of educational institutions providing skilled workers, and other state-level incentives are all driving forces that make TN a business-friendly alternative. No wonder Oracle, Amazon, and many other technology businesses are viewing Nashville and the surrounding area as their new home and are investing billions in our great state. Where other places like California, New York, and Seattle are showing businesses the door, TN is opening our door and placing out the welcome mat.


The same scenario above can be said about industries centered around the auto, sports, entertainment, logistics, education, banking, medical, manufacturing, business, services, hospitality, energy, tourism, entertainment, and many more—all strong and vibrant industries in Tennessee.


Diversification of industry is what keeps TN strong. Like a well-diversified financial portfolio, many businesses in TN are generally hedges in both up and down markets. For example, during Covid, many in the entertainment and hospitality industries saw their prospects turn downward. However, businesses like Amazon, trucking/logistics, and medical thrived. In fact, their business did so well that they faced the growing pains of being unable to keep up with the new demands forced on them. The result has been the hiring market in those industries was and still is optimal. Where jobs are people naturally migrate to. The better the jobs, the greater the migratory pull.


No, Nashville is not just about country music. It is so much more. If that were the case, it would have suffered the same economic collapse as Las Vegas did during Covid, whose primary financial base centered around the tourist dollar. As a consequence, home sales dropped by a whopping 50%. When the capacity to buy falls, house sales fall. When house sales decline, so do home values. Luckily for Vegas, it has always had the allure of outside investors. And what investors realize is a falling market often equals a good buying opportunity. Having a solid understanding of why a market is falling gives an investor keen insight into future risk. Unlike Las Vegas, places like California, Washington, and New York are not pro-economics and are now seeing a mass exodus that will likely last years. In TN, however, their loss is our gain. People need houses and jobs. Due to our diverse industrial base Nashville, middle Tennessee, and most of the state will continue to be on a solid financial footing for years to come. One thing most agree on is stability is both good and desirable.


So, are you looking to buy or sell? Then in TN, there is no time like the present.


Give us a shout and let us know how we can help you.