H
igh-earning individuals from Los Angeles and New York City are increasingly leaving their coastal lifestyles behind to start fresh in Nashville, Tennessee. The city's housing market offers a more affordable option, with lower property taxes and no state income tax, making it an attractive destination for those looking to stretch their dollars.

    Gary Ashton, founder of The Ashton Real Estate Group of Re/Max Advantage in Nashville, notes that the city has been drawing coastal transplants in recent years due to its thriving economy, vibrant entertainment scene, and growing reputation as a desirable place to live. According to Ashton, many of these newcomers are able to tap into their equity and purchase larger, more upscale properties in Nashville and its affluent suburbs.

    Enzo Fiore, a real estate agent with Ashton's Re/Max group, says that 99% of his sales this year have involved Californians looking for single-family homes on large plots of land within easy reach of amenities. "They want the land, the tax benefits of Tennessee, the affordability, while still keeping their lifestyle of being close to restaurants, shopping, and things to do," Fiore explains.

    Nashville's economy has been a major draw for out-of-staters, with a wide array of local industries, including entertainment, health care, technology, manufacturing, and finance. The city's unemployment rate is significantly lower than the national average, at 2.8% in April, compared to 3.5% in New York City and 5.8% in Los Angeles.

    The luxury segment of Nashville's housing market has seen a significant surge, with over 18% of for-sale homes priced above $1 million in April. The median listing price in the city was just shy of $550,000, representing a 4% decrease from the previous year. In contrast, New York City and Los Angeles saw their median listing prices climb to $789,000 and $1,195,000, respectively.

    Many of Fiore's clients coming from Los Angeles are looking to spend well over $1 million in Nashville, drawn by the city's affordability and tax benefits. "Being able to come to Tennessee, with no state income tax, and seeing how far their money goes out here compared to L.A., is a no-brainer," Fiore says.

    Realtor.com Senior Economic Research Analyst Hannah Jones notes that while Nashville may be less affordable than it was just a few years ago, it still offers low home prices relative to New York and Los Angeles, along with more space and amenities. "As more companies gave employees the go-ahead to work remotely, home shoppers looked to flee their high-priced coastal markets in search of more bang for their buck," Jones says.

    The influx of new arrivals has led to a range of trends in Nashville's housing market, including an increase in multigenerational families relocating together and a growing demand for single-family homes with large lots in the suburbs. Young professionals on a budget are typically looking to buy condos under $1 million in downtown areas, while deep-pocketed transplants are seeking more acreage and privacy in towns like Belle Meade and Leiper's Fork.

    As home prices and property taxes continue to climb in California, individuals and businesses alike are expected to flock to Nashville for a more affordable and enjoyable lifestyle. "For what you buy a 1,000-square-foot starter home for in L.A., you could be buying a great home with land in Brentwood or Franklin," Fiore notes.