This is a market that has seen phenomenal increases over the last 24 months or so. Both Nashville and Knoxville (and everything in-between) and then on to Memphis, have all seen a huge growth in the rental market, and it is set to continue.
Why has Tennessee rental housing market been so hot
The big city centers such as Nashville have had a lot to do with the overall state rating as a real estate opportunity. While rental and housing markets have generally seen growth across the US, the PricewaterhouseCoopers Emerging Trends in Real Estate 2022 report notes that Nashville is the top-ranked real estate city in the country.
Low inventory means that rental is the only option for most looking for a place to stay. With the end of Covid and the rise of the home office, many people are also looking towards finding new rental homes that suit their needs rather than simply accepting what they are stuck with and making do. It also means that cities like Nashville, which boasts growth prospects, attractive affordability, strong job growth and a warm climate, are exceedingly attractive.
The buying prices have skyrocketed, making the ability to secure a bond with the right-sized deposit an exceedingly difficult proposition. In addition, with inflation rising and fewer opportunities for many to make substantial savings towards a deposit for a home, renting is the only option for many people. So as incomes in the region have risen so too has the demand for high-quality rental accommodation and this has been a trend throughout the state.
How to take advantage
Look for properties to buy that would be good to rent and follow trends in the rental market. For example, one of the current trends is a growing interest in rentals by single-family renters. The soaring prices of buying homes mean that many single families are outpriced for buying and their only option is renting. As such, smaller homes with some flexibility for remote working are appealing to small families who are looking for opportunities to move from high-cost-of-living areas to more lifestyle-friendly areas such as Nashville and Tennessee.
Look to use innovative private money lenders like Sachem lending who specialize in this type of finance and funding and will also be able to provide advice and support in the process. Private, more innovative, forms of funding such as these will likely be processed quicker than the traditional forms of finance and as such will allow you to make offers quicker and on more properties as your portfolio grows.
Buy properties that can be renovated and easily improved for a specific rental market. Adding rooms to a family home to convert into student housing or turning older, bigger buildings into apartments are always winners. You just have to find the right building to start and some professional workers to turn dilapidated buildings into ongoing rental income.
The Tennessee rental market as a component of the overall housing market has been the fastest-growing. More people need to rent than ever before and the convenience of a big city in Tennessee, like Michigan and Knoxville, has a lot to offer in this regard.