As part of Zillow’s Home Price Expectations Survey, they organized a panel of 100 US economists and real estate experts to rate their predictions for the 2020 housing market. On average, panelists expected that the US housing market will grow by 2.8% within the next year. Worth noting, Nashville was the only market predicted to not have home values fall in 2020.
Nashville was ranked 4th in the nation for hottest housing markets in 2020, with 57% of the panelists expecting Nashville’s market to outperform the national average. Panelists also predicted that the majority of “hot markets” would be in the south. The West Coast markets have been hit hard with competition which has increased prices, driving up the affordability ceiling.
Real Estate Performance Expectations
- Panelists from this year’s survey predicted these outcomes for Nashville in 2020:
- 59% of panelists expect home values to grow faster than the national rate
- 31% of panelists expect home values to grow slower than they do nationally
- 10% of panelists expect home values to grow about the same as they do nationally
Overall, what this means is that Nashville is predicted to grow faster than the national average and see homes increase in value, as well as become a sought after real estate market for future residents and investors. The city has already seen strong job growth, which has led to a competitive housing market between young buyers who possess earning potential as well as job security.
A recent Realtor.com survey found that rising rents was the leading factor behind young professionals making the decision to finally buy. In cities like Nashville, new luxury apartments are saturating the markets and making the rent vs. own debate more balanced, convincing new buyers to hop on the homeowner train.