How the pandemic transformed Nashville's housing market
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The pandemic rocked our housing market, leaving behind a new reality that will shape the way we live for years to come.
Why it matters: Prices skyrocketed all over the country, but the jump hit Nashville and the rest of Tennessee particularly hard, keeping homeownership out of reach for many.
- At the same time, climbing mortgage rates put many existing homeowners in a bind.
Here are some of the top issues we've noticed over the last five years, along with some feedback from Axios Nashville readers.
📈 Booming home prices: Cheap borrowing costs and remote work unleashed a homebuying frenzy early in the pandemic — and sent prices soaring.
- Median prices jumped more than 44% nationwide from January 2020 to January 2025. Tennessee saw an even steeper hike of 62%.
Between the lines: Middle Tennessee was a major driver of the price surge.
Reader Brooks T. tells us he and his wife bought a home in East Nashville before the height of the pandemic in 2020. Since then, he says, the Zillow estimate of their home value has jumped by 50%.
- If they were looking today, he says, "we would struggle to buy our own house." He recognizes his luck but says it has led to some conflicted feelings.
- "It feels weird to live in a house that we could afford in the past, but that we could no longer afford," Brooks says. "Some of our friends are struggling to buy a house. We feel guilty that we got to buy a house then, while they struggle now."
💰 Soaring interest rates: Mortgage rates surged after falling to the lowest levels on record in 2021. Higher monthly payments are sidelining many shoppers, including existing homeowners who don't want to lose their low rates.
- Ben P. says he bought in The Nations in 2019 and refinanced to lock in a low rate in 2020. He says he now feels "handcuffed" to his home.
- "With rising mortgage rates, selling or moving feels financially impossible."
🔍 Buyers branched out: As costs surged, prospective buyers started to widen their searches. Many were willing to move further into the suburbs for a bargain.
- Case in point: The rural city of Adams in Robertson County — a 50-minute drive from Nashville — was recently ranked as one of the hottest housing markets in the country by American City Business Journals. Sales momentum and climbing prices figured into the ranking.
- Eddie C. sold his home in Antioch and bought "a much larger new construction home in Clarksville."
Read more about the national trends from our real estate team