Buyer’s Market in Nashville? Not If You’re Not Making Six Figures

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A worried couple standing outside a house for sale in Nashville, looking at mortgage costs on a tablet, with the city skyline in the background—highlighting home affordability challenges in 2025.

Buyer’s Market in Nashville? Not If You’re Not Making Six Figures

The headlines are everywhere: “Nashville is a buyer’s market again!” But if you’ve been house hunting lately, you might be wondering what planet those headlines are from. Yes, more homes are up for sale. Yes, buyers have more negotiating power. But here’s the harsh truth: if you’re not making at least $100,000 a year, chances are Nashville’s housing market is still out of your reach.

What Is a Buyer’s Market—and Why It’s Misleading Right Now

Let’s clear up a common misconception. A buyer’s market typically means there are more houses for sale than there are buyers. That’s happening now in Nashville. According to Redfin data, there are nearly 90% more listings than this time last year, giving buyers more choice and bargaining power. Sounds great, right?

Here’s the catch: just because there are more homes available doesn’t mean they’re affordable. In fact, the median home price in Nashville sits around $467,000. That means, assuming a 20% down payment, you’d need to make over $120,000 a year to comfortably afford a mortgage under typical lending rules.

So yes, technically, it’s a buyer’s market. But for many people—especially first-time buyers, renters trying to get into the market, or anyone making less than six figures—it feels like the door is still locked.

Who Can Actually Afford to Buy in Nashville?

Let’s run a quick scenario. Imagine you’re earning $70,000 a year, which is above the median household income in Nashville. You have decent credit, a small amount of student debt, and $20,000 saved for a down payment. You might think you’re in decent shape to buy a home.

But when you plug those numbers into a mortgage calculator, reality hits hard. Even with a 30-year mortgage at a 6.5% interest rate, the homes within your budget are often fixer-uppers far from downtown—or in areas with little public transportation and long commutes. Many homes in central neighborhoods start above $450,000, leaving you priced out unless you double up on income or stretch your budget uncomfortably.

Let’s break it down:

  • Home Price: $467,000 (Nashville median)
  • Down Payment (20%): $93,400
  • Monthly Mortgage (est.): $2,800–$3,100 (with taxes & insurance)

To afford that without being “house poor,” most lenders recommend that your mortgage payment be no more than 28–30% of your monthly income. That translates to an annual salary of at least $120,000.

If you’re earning less than that? You either need a large down payment, a second income, or a willingness to move farther from the city core.

And that’s where it gets tricky.

The Hidden Costs of Buying a Home in Nashville

Even if you find a home that barely fits your budget, don’t forget the hidden costs. These often catch first-time buyers off guard and can blow up your financial plans fast. Here’s what to expect:

  • Closing Costs: Typically 2–5% of the home price — that’s $9,000–$23,000 on a $467,000 home.
  • Repairs & Maintenance: Older homes may need roof work, HVAC replacement, plumbing updates, or foundation fixes.
  • Property Taxes: Nashville’s property taxes are rising to support city infrastructure, adding hundreds to your monthly budget.
  • HOA Fees: Many townhomes and condos come with monthly dues — often $150–$400/month.

So, while the house may look affordable on paper, the real monthly cost of homeownership could easily exceed what you’re paying in rent — and that’s before you factor in furniture, lawn care, and emergency repairs.

What to Do If You’re Priced Out (For Now)

Okay, so you’ve run the numbers and realized you’re not quite ready to buy in Nashville’s current market. Don’t panic — and definitely don’t give up. There are smart, actionable steps you can take to prepare for homeownership or rethink your options:

1. Save for a Bigger Down Payment

Every extra dollar saved now can reduce your future mortgage costs. Aim for at least 10–20% down if possible, and consider using a high-yield savings account or CD ladder to grow your funds faster while keeping them safe.

2. Consider First-Time Buyer Programs

Tennessee has programs like THDA’s Great Choice Home Loan and local down payment assistance for qualifying buyers. These can reduce your upfront costs significantly — even if your income isn’t six figures.

3. Get Pre-Approved (Even If You’re Not Ready to Buy)

Talk to a lender or mortgage broker and get a realistic sense of what you can afford. This helps you set concrete savings goals, and you’ll be ready to move fast if the right opportunity arises.

4. Explore Surrounding Areas

If downtown Nashville is out of reach, look into up-and-coming areas like Madison, Donelson, Antioch, or even Murfreesboro. While they require a longer commute, you may find better deals and more square footage for your budget.

Pro Tip: Use the 30/30/3 rule — spend no more than 30% of your gross income on housing, keep 30% in cash after closing, and don’t buy a home more than 3x your annual income. It’s a great way to stay financially safe.

Is Renting Really That Bad?

In a market like this, you might feel like renting is “throwing money away.” But here’s the truth: renting can be the smarter financial decision—especially if you’re not financially ready to own.

With renting:

  • You avoid property tax hikes and HOA fees.
  • You don’t have to pay for surprise repairs or maintenance.
  • You maintain flexibility to move, change jobs, or upgrade your space with less commitment.

According to Zillow, the average monthly rent for a 2-bedroom in Nashville is currently around $1,950—nearly $1,000 less than a mortgage on a median-priced home. That monthly savings could go toward debt repayment, emergency savings, or a future down payment fund.

Renting doesn’t mean you’re failing—it means you’re being strategic. Waiting until the time is right can save you tens of thousands and prevent buyer’s remorse.

The Nashville Housing Outlook: Will It Get Better?

There’s some good news on the horizon. Experts predict that housing prices may cool slightly if interest rates remain high through 2025. More inventory could increase buyer options. And city-led initiatives may help create affordable housing opportunities over the next few years.

But in the short term, affordability will remain a challenge. Nashville is growing fast—and demand isn’t going anywhere. So unless incomes rise or prices drop significantly (or both), middle-class buyers will continue to face an uphill battle.

Final Thoughts: Don’t Let the Headlines Fool You

Yes, it’s technically a buyer’s market in Nashville. But the real question is: who are the buyers?

If you’re not making six figures, it can feel like the door to homeownership is closed—or at least heavily guarded. But that doesn’t mean your goals aren’t possible. With smart planning, creative thinking, and a little patience, you can still find a path forward.

Start by building your financial foundation, stay informed about market shifts, and explore every program and opportunity available. Because when the moment comes, you’ll be ready—not just to buy a house, but to own it wisely.

Resources to Help You Get Started

Got questions or want to share your house hunting story in Nashville? Drop a comment below—I read every one.


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