Weekly Market Updated - 10/21/2025

• Nashville rent prices drop: Here’s why:

Nashville’s rental market is cooling, with average rents falling 1.5% year-over-year due to a surge in new apartment construction. Nearly 9,000 units were added downtown between 2020 and 2024, and thousands more in areas like Antioch and Madison. This oversupply has led to increased concessions, including free rent offers, and made renting more affordable than buying. Rising household costs and a competitive leasing environment are pushing renters to surrounding counties for better deals. (The Tennessean, October 9, 2025)

• Atlanta Fed housing study challenges affordable housing assumptions

A new study from the Federal Reserve Bank of Atlanta questions traditional definitions of housing affordability, suggesting that residual income—what households have left after paying for housing—is a more accurate measure than rent-to-income ratios. The report finds that many households considered “affordable” by standard metrics still struggle financially due to high transportation and utility costs. The study urges policymakers to rethink affordability strategies, especially in fast-growing Southern metros like Nashville and Atlanta, where housing costs are rising but wages lag behind. (Nashville Business Journal, October 9, 2025)

• Greater Nashville home sales dip in September amid rising inventory

Home sales across Greater Nashville declined slightly in September, reflecting a cooling market as inventory levels rise. The Greater Nashville Realtors report shows a 3% drop in closings compared to the same month last year, while active listings increased by 12%. Median home prices held steady, but longer days on market suggest buyers are gaining leverage. Experts say the shift is due to higher mortgage rates and seasonal slowdowns, though demand remains strong in suburban areas. (Nashville Business Journal, October 10, 2025)

• Buc-ee’s breaks ground on Middle Tennessee location

Buc-ee’s has officially begun construction on its first Middle Tennessee travel center, located off Interstate 65 in Robertson County. The massive convenience store will span over 74,000 square feet and include 120 fueling stations, making it one of the largest in the region. Local officials expect the development to boost tourism and economic activity, with hundreds of jobs anticipated. The store is part of Buc-ee’s broader expansion strategy across the Southeast. (Nashville Business Journal, October 13, 2025)

• Economists see stronger economic growth this year despite uncertainty

A new survey from the National Association for Business Economics shows rising optimism for U.S. economic growth, with 2025 GDP projections increasing to 1.8% from 1.3% in June. Business investment, especially in AI and data centers, is driving the improved outlook. Consumer spending remains supportive, though slightly softer than last year. Tariffs and inflation are key risks, while recession fears are limited. Labor market expectations have weakened, but economists are hopeful about productivity gains. The survey was released at the group’s annual meeting, where Fed Chair Jerome Powell received the Adam Smith Award and hinted at possible rate cuts. (CoStar Economy, October 2025)

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