Nashville continues to shine as one of the nation’s fastest-growing housing markets. Nashville ranks third nationwide for new home construction in 2025, driven by strong job growth, competitive prices, and steady population gains.
Highlights
- Nashville ranks no. 3 nationally for new home construction in 2025.
- The city continues to attract new residents, fueling real estate development.
- Thirty-seven percent of homes on the market are new builds, with a median listing price of $540,686.
Nashville Ranks Third in Housing Market for New Construction
Realtor.com’s latest report highlights Nashville-Davidson-Murfreesboro-Franklin as one of the top U.S. metros for new home construction this year. Fayetteville-Springdale-Rogers and Boise City surpassed Nashville in the rankings, showcasing the cities’ rising prominence in residential development.
The rankings were determined by factors including:
- New-construction share of listings: 37% in the case of Nashville
- New-construction premium: 5.8%
- Climate risk difference: 1.2% as compared to existing homes
- Hotness of new-construction market: Nashville scored 70.7
- Inventory score: 94.9
- Price score: 78.8
- Sustainability score: 54.5
What Makes Nashville Real Estate Suitable for Housing
The Nashville metro continues to stand out for its strong job market and steady pace of new housing construction. 37% of all properties available in a for-sale scenario are brand new, with the supply of existing houses rising over the past few years.
The median listing price of new construction is $540,686, slightly higher than existing homes, which average $511,132. This balance highlights how Nashville is not only an economic center of the South but also a market of focus for homebuilders as well.
In terms of sustainability, the city earned a middle-tier score. New metro houses possess a slightly lower risk of being exposed to heat, but a slightly higher fire risk compared to older homes. The differences are minimal, suggesting new homes are just as resilient as older ones in the area.
Market demand also seems to be healthy as new construction in Nashville attracts an average level of online activity on Realtor.com and spends fewer days (52 days) on the market than the national average.
Most of the new construction is concentrated in the eastern and southern suburbs, with less activity in the downtown core.
With its affordability, strong economy, and growing population, Nashville has emerged as a leader in new home construction. Nashville’s third-place ranking underscores its status as one of the nation’s most competitive housing markets.
