Introduction
Nashville, Tennessee, also known as Music City, has been making waves in the short-term rental market. Whether you’re a homeowner looking to capitalize on this trend or a traveler seeking unique accommodations, Nashville’s Airbnb and short-term rental scene is a hot topic. In this blog post, we’ll dive deep into the short-term rental landscape in Nashville, covering essential data points and answering pertinent questions about the city.
Understanding the Numbers
To gauge the health of the short-term rental market in Nashville, we need to start with some key data points
Supply
The most popular homes are 4-bedroom homes, comprising 24.55% of inventory. This is followed by 1 and 3-bedroom homes at 22.93% and 22.73% of the total inventory, respectively.
Home Values and Depreciation
According to Zillow, the median home value in Nashville is $432,592. However, it’s worth noting that the housing market has seen a 1.40% depreciation. This can be a significant factor contributing to the rise of short-term rentals as homeowners seek to maximize their property’s income potential.
Average Daily Rate
The median ADR for the market is $363.70. The Average Daily Rate is the highest for 7 bedroom homes ($524) followed by 6-bedrooms and 5 bedrooms at $386 and $360 respectively.
Yield and Property Tax
For potential investors, Nashville offers an attractive average gross yield of 15.28% on short-term rentals. Additionally, property taxes are relatively moderate, with an average of 0.66%, making it a favorable environment for those looking to enter the short-term rental market.
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Nashville by the Numbers
Now that we have a solid grasp of the short-term rental market, let’s address some of the city’s key statistics and questions
Hosts
The market is dominated by property management firms. The largest host is GoodNight with 3.04% of the total inventory and an average review of 4.83⭐️s .
Median Household Income
The median household income in Nashville, TN, stands at $56,052, which plays a role in shaping both the demand for short-term rentals and the financial incentives for potential hosts.
Climate
Nashville experiences a humid subtropical climate with hot summers and mild winters, making it an attractive year-round destination for travelers.
Population
The city’s population size is approximately 700,000, and it’s growing steadily, creating a substantial pool of potential visitors for short-term rentals.
Guests
The majority of the guests come from inside of Tennessee. 3.87% of all guests are from Nashville followed by Atlanta with 2.6%.
Sports Teams
Nashville is home to professional sports teams, including the Tennessee Titans in the NFL and the Nashville Predators in the NHL, making it a sports lover’s paradise.
Colleges
Several colleges and universities, such as Vanderbilt University and Belmont University, contribute to the city’s educational and cultural diversity.
Crime Rate
Nashville’s crime rate varies across neighborhoods, but the city’s overall safety remains a crucial factor for both residents and tourists.
Nashville’s Attraction to Visitors
To understand the short-term rental market fully, we must also consider what draws visitors to Nashville:
Tourist Attractions
Nashville offers a rich cultural experience with attractions like the Grand Ole Opry, the Country Music Hall of Fame, and vibrant nightlife on Broadway.
Peak Season
The peak season in Nashville typically falls during the spring and fall when the weather is mild, and major events, such as music festivals, draw crowds.
Drawing Visitors from Across the Map
Nashville is a magnetic city that attracts visitors from various regions, making it a melting pot of cultures and experiences. People from across the United States and internationally flock to Nashville to immerse themselves in its unique music and culinary scene.
Final Thoughts
The short-term rental market in Nashville, TN, is thriving, fueled by attractive financial prospects, cultural attractions, and a growing population. Whether you’re a homeowner considering joining the Airbnb revolution or a traveler looking for a memorable experience, Nashville offers something for everyone. So, why wait? Come explore Music City, and maybe even book a short-term rental for your next visit!
