Navigating Tennessee's Evolving Housing Market: Insights for Nashville Residents

Nashville's housing market is painting a complex picture as we head into the final quarter of 2025, and frankly, the numbers are telling quite a story that every Middle Tennessee resident should know about.

MTSU's Business and Economic Research Center just dropped their second-quarter report, and let me tell you, it's a mixed bag that's got everyone talking. Home prices across Tennessee nudged up 0.7 percent quarterly, slightly outpacing the national average, but here's where it gets interesting for Nashville folks – the Music City actually saw some of the slowest growth in the state at just 0.48 percent, putting it in the same sluggish category as Memphis.

Meanwhile, Davidson County's median home price hit $480,000 in July according to Redfin, up 1.5 percent from last year, but homes are sitting on the market longer – 61 days compared to 52 days last year. That's telling us something about buyer hesitation, isn't it?

The construction story is even more dramatic. Tennessee's housing permits took a serious hit, dropping 7.5 percent year-over-year, with multifamily permits absolutely plummeting 21.6 percent. That's going to affect inventory down the road, mark my words.

But here's what's really fascinating – while Nashville's growth has cooled, smaller markets like Morristown and Johnson City are absolutely on fire, leading the state with 3 percent and 2.7 percent quarterly gains respectively. It's like the heat map is shifting away from the big cities.

Williamson County tells its own tale of luxury market challenges, with home prices actually declining 2.2 percent to a median of $870,000, though sales volume is up. Even paradise has its reality checks.

The bright spot? Starter homes are having a moment nationally, with sales up 3.8 percent and inventory at the highest August levels since 2016. For first-time buyers in our market, that's potentially good news if you can navigate the competition.

What's particularly striking about Tennessee's market is its resilience – mortgage delinquencies and foreclosure rates remain stable despite these shifting dynamics. The MTSU report emphasizes this stability amid a healthy labor market.

Thanks for tuning in to get the real scoop on our local housing scene. Come back next week when we'll dive deeper into what these trends mean for buyers and sellers heading into 2026. This has been a Quiet Please production – for more insights, check out quietplease.ai..

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Episode Transcript

Speaker 1 (00:00):
Nashville's housing market is painting a complex picture as we
head into the final quarter of twenty twenty five, and frankly,
the numbers are telling quite a story that every Middle
Tennessee resident should know about. Metsu's Business and Economic Research
Center just dropped their second quarter report, and let me
tell you, it's a mixed bag that's got everyone talking.
Home prices across Tennessee nudged up zero point seven percent quarterly,

(00:22):
slightly outpacing the national average. But here's where it gets
interesting for Nashville folks. The Music city actually saw some
of the slowest growth in the state, at just zero
point four to eight percent, putting it in the same
sluggish category as Memphis. Meanwhile, Davidson County's median home price
hit four hundred and eighty thousand dollars in July, according
to Redfinn, up one point five percent from last year.

(00:44):
But homes are sitting on the market longer sixty one
days compared to fifty two days last year. That's telling
us something about buyer hesitation, isn't it. The construction story
is even more dramatic. Tennessee's housing permits took a serious hit,
dropping seven point five percent year over year, with multi
family permits absolutely plummeting twenty one point six percent. That's

(01:05):
going to affect inventory down the road. Mark my words.
But here's what's really fascinating. While Nashville's growth has cooled,
smaller markets like Morristown and Johnson City are absolutely on fire,
leading the state with three percent and two point seven
percent quarterly games, respectively. It's like the heat map is
shifting away from the big cities. Williamson County tells its

(01:25):
own tale of luxury market challenges, with home prices actually
declining two point two percent to a median of eight
hundred and seventy thousand dollars, though sales volume is up.
Even Paradise have Even Paradise has its reality checks. The
bright Saw starter homes are having in a moment nationally,
with sales up three point eight percent and inventory at
the highest augest level since twenty sixteen. For first time

(01:48):
buyers in our market, that's potentially good news if you
can navigate the competition. What's particularly striking about Tennessee's market
is its resilience. Mortgage delinquencies and foreclosure rates remain stable
despite these shifting dynamics. The MTSU report emphasizes this stability
amid a healthy labor market. Thanks for tuning in to
get the real scoop on our local housing scene. Come

(02:09):
back next week when we'll dive deeper into what these
trends mean for buyers and sellers heading into twenty twenty six.
This has been a quiet please production. For more insights,
check out Quiet Please dot ai