TerraVue

TerraVue / Markets / Nashville-Davidson, TN

Should you buy or rent in Nashville-Davidson, TN?

Over the past 20 years, Nashville-Davidson home prices have risen 5.78% a year; over the past three, 3.11%. TerraVue's forward estimate, which weights both, is 4.71%. That is 0.69pp above the national average — over a 10-year hold, that gap compounds into a meaningful difference in equity.

Past 20 years5.78%actual, per year
Past 3 years3.11%actual, per year
Forward est.4.71%+0.69pp vs national
Median rent$1,864across 22 ZIPs
5 year 8.69% 10 year 8.75% 20 year 5.78% Forward est. 4.71% NATIONAL 4.0%
Annualized appreciation over each look-back window, from FHFA repeat-sales data. “Forward est.” is the blended estimate TerraVue simulates with (60% long-run, 40% recent 3-year).

What this means for a buyer

Appreciation is only one side of the buy-vs-rent question, but it's the side people guess at most badly. At the forward estimate of 4.71% a year, a home in Nashville-Davidson would gain roughly 59% in value over a decade — before any of the costs that actually decide the question: closing costs, maintenance, property tax, the mortgage interest you'd pay, and what your down payment would have earned invested instead.

Worth being explicit about what that estimate is: it blends the 20-year record (5.78%) with the last three years (3.11%), so a market in a sharp recent run-up or correction lands between the two rather than at either extreme. It is an estimate, not a forecast anyone can guarantee — which is exactly why TerraVue simulates a range of outcomes instead of quoting one number.

Rent is the other side. At a median of $1,864, the yearly rent bill in Nashville-Davidson is about $22,368. Whether buying beats that depends almost entirely on the price you'd pay and how long you'd stay — which is what the simulator is for.

Run it on an actual property

This page describes the Nashville-Davidson market as a whole. Whether buying beats renting depends on the price you'd pay, your down payment, and how long you'd stay — TerraVue simulates about 1,000 market scenarios on those inputs and returns the probability, not a single guessed number. It'll start with 37013's real appreciation and rent already loaded.

Analyze a property free →

Appreciation by ZIP code in Nashville-Davidson

Averages hide a lot. Across Nashville-Davidson's 22 ZIP codes, long-run appreciation ranges from 3.69% to 6.54% a year — a spread of 2.8 percentage points. Over a 10-year hold, that difference compounds into a substantially different outcome for two buyers in the same city.

ZIPAppreciation/yrRecent 3yrRentBachelor's+
37189 6.54% 7.57% $1,950 41%
37203 6.28% 2.74% $2,034 63%
37206 6.16% 4.26% $2,123 57%
37208 5.83% 3.04% $2,128 47%
37218 5.68% 5.64% $2,097 26%
37207 5.46% 4.01% $1,931 31%
37210 5.24% 2.84% $1,833 33%
37080 5.10% 5.33% $1,058 20%
37216 5.07% 2.13% $1,981 52%
37204 4.96% 4.00% $1,895 75%
37221 4.85% 4.48% $1,674 58%
37211 4.72% 3.22% $1,441 41%
37214 4.72% 3.33% $1,576 43%
37138 4.70% 3.59% $2,122 40%
37212 4.64% 3.00% $1,997 75%
37209 4.42% 2.07% $1,773 54%
37072 4.35% 3.54% $1,756 30%
37115 4.31% 2.42% $1,626 24%
37013 4.11% 2.68% $1,568 30%
37076 4.04% 2.45% $1,446 39%
37217 3.80% 1.51% $1,415 31%
37205 3.69% 1.57% $2,102 76%

Sorted by long-run blended appreciation. Green is at least 0.5pp above the national average, red at least 0.5pp below; smaller gaps are left neutral. ZIPs shown as links have their own detail page.

How these numbers are calculated

Appreciation comes from the FHFA House Price Index — a repeat-sales index that tracks the same homes over time, which is why it isn't distorted by a change in the mix of what sold in a given year. TerraVue reads it at the ZIP level, back to 1975 where coverage allows.

The forward estimate blends 60% of the longest available look-back (20 years where available) with 40% of the most recent 3 years. Long-run history is the more reliable signal, but a market that has genuinely changed pace should not be ignored — the 60/40 split is the compromise, and it's the same figure TerraVue's simulation uses.

The national comparison is the population-weighted average of these same blended ZIP-level figures, so it compares like with like.

The FHFA index measures rates of change, not price levels. These pages therefore describe how fast prices have moved, never what a home costs — that number depends on the specific property, and it's the one input you supply when you run an analysis.

Common questions

Is it better to buy or rent in Nashville-Davidson, TN?

It depends on the price of the specific home and how long you'd stay. What the data settles is the market backdrop: over the past 20 years Nashville-Davidson, TN home prices have risen about 5.78% a year, and TerraVue's forward estimate is 4.71% — above the national average of 4.02% — against a median rent near $1,864. TerraVue runs about 1,000 scenarios on a specific price to return the probability that buying beats renting, plus the breakeven year.

How fast are home prices rising in Nashville-Davidson, TN?

Over the past 20 years, about 5.78% a year; over the past three, 3.11%. TerraVue's forward estimate blends the two at 4.71%. All of it comes from FHFA repeat-sales data across 22 ZIP codes, and individual ZIPs range from 3.69% to 6.54% on that same forward basis.

Which Nashville-Davidson ZIP code has appreciated the most?

37189 at 6.54% a year, versus 37205 at 3.69% — a spread of about 2.8 percentage points a year within the same city.

What is the average rent in Nashville-Davidson, TN?

Around $1,864 — the median across the city's ZIP codes, from the Zillow Observed Rent Index (all homes).

Other markets in Tennessee

Memphis, TN