A report from digital real estate giant Zillow found Music City is the fifth hottest market in the country for 2023.
“This year’s hottest markets will feel much chillier than they did a year ago,” Anushna Prakash, Zillow’s economic data analyst, said in a press release. “The desire to move hasn’t changed, but both buyers and sellers are frozen in place by higher mortgage rates, slowing the housing market to a c
rawl. Markets that offer relative affordability and room to grow are poised to stand out, especially given the prevalence of remote work.”
Unlike previous Zillow studies, fast-growing home values were not a requirement for making the list this time around. Higher mortgage rates and affordability challenges slowed demand and decreased values in many markets. Experts expect the value to recover, but the growth will be at a much slower pace than in recent history.
“The good news for buyers is that monthly housing costs have stopped climbing. Home shoppers who can overcome affordability hurdles will find a more comfortable market this year, with more time to consider options and less chance of a bidding war, even if they’re shopping in one of the hottest markets," Prakash added.
The study analyzed data from the 50 largest U.S. metros, including expected home value appreciation, new jobs per new housing units permitted, estimated net new number of home-owning households and the speed at which homes are being sold.
Zillow’s findings aren’t a one-off. Digital real estate company Opendoor determined Middle Tennessee has three of the top 20 most desirable ZIP codes in the country.
Gallatin, about 30 miles northeast of Nashville, was ranked the No. 7 hottest emerging market and No. 17 hottest overall. Murfreesboro and Clarksville were ranked No. 10 and No. 1, respectively, as the overall hottest zip codes in the United States.
“For the second year, Clarksville is ranked #1 for its housing affordability, low taxes, high quality of life and close proximity to Nashville’s entertainment, dining and nightlife,” Chelsea Goyer, Opendoor’s national head of brokerage, said in a press release. “Only 30 minutes from downtown, Murfreesboro is climbing in popularity with its affordability and plenty of activities for families. We anticipate more towns like Gallatin, which balances a small-town feel with all the convenience and amenities of a larger city, will continue to rise through the ranks.”
Clarksville, about 45 miles northwest of Nashville, made headlines throughout 2022 for its rapid growth. The city’s downtown is in the midst of a massive overhaul with a planned renovation of the Riverview Inn, a new outdoor shopping, dining and social district; and the 250,000-square-foot F&M Arena, which is expected to open to the public this summer.
In addition to growing its amenities, Clarksville has worked hard to grow its local economy. The community has attracted $1.75 billion of private investment and more than 3,000 announced jobs from companies including LG Chem, Hancock Tire, America Corp. and google.
Opendoor’s study analyzed data from local Multiple Listing Services. Communities were ranked by total homes that went into contract within 90 days of being listed in 2022.
Tennessee is home to more than 29,000 commercial and residential REALTORS® who work hard to help businesses and families with all of their property needs.
Tennessee has the #1 business climate in the U.S., according to Business Facilities, 2019.
Competitive tax incentives make Tennessee a smart choice: one of the lowest per capita tax burdens, no income tax on wages, and no state property tax.
The Volunteer State is home to 967 foreign-based businesses that invest $37.3 billion in capital and employ 147,000 Tennesseans.
Tennessee has offices courting foreign direct investment in Japan, South Korea, China, Netherlands, Germany, Italy, and the United Kingdom.
Tennessee works closely with our U.S. federal partners to promote exports, totaling $33.2 billion in 2017.
More than 33,000 job openings are filled annually by the Tennessee Department of Labor and Workforce Development.
Tennessee is home to 3,700 graduates in engineering, engineering technologies and engineering-related fields, an increase of 31.9 percent in six years.
Companies with a Tennessee presence make the world’s best whiskeys, Duracell batteries, GE refrigerators, La-Z-Boy recliners, M&Ms, Nissan and General Motors cars, and much more.
**For more information about the Tennessee Real Estate Market, www.tnrealtors.com.
