Mid-Year Economic Snapshot: Nashville Holding Strong in 2025

There’s been a lot of uncertainty this year surrounding the economy and housing market—especially when viewed through a national lens.

Headlines speculating about a housing crash or an economic slowdown tied to inflation, tariffs, and broader global pressures have become increasingly common. But while national trends paint a mixed picture, it’s important to ground ourselves in what we know for sure about our own local economy.

Thanks to recent data from the Nashville Area Chamber of Commerce, we have a clear view of how the first half of 2025 shaped up for the Nashville region—and the numbers are both insightful and encouraging.

So far this year, the Nashville metro area has added approximately 30,000 jobs, bringing total employment to just over 1.2 million. That job growth has outpaced the national average, and our unemployment rate sits at a low 2.7%—more than a full percentage point below the U.S. average of 4%.

Employment gains have been especially strong in the hospitality, retail, and wholesale trade sectors. While some industries like manufacturing, construction, and information services have seen slight declines, the overall labor market remains healthy. Healthcare—Nashville’s largest industry—continues to see robust demand, particularly for nurses. And as emerging technologies like AI reshape the job landscape, Middle Tennessee remains well-positioned to adapt and grow.

As for the housing market, there’s no denying it’s been slower, both nationally and locally. High interest rates and rising home prices have cooled buyer activity, and homes are sitting on the market longer than in previous years.

However, there are signs of a shift. Inventory is growing, giving buyers more options and negotiating power. While single-family building permits are down about 5% compared to this time last year, the number of active listings in June was up 28% year-over-year.

That increase in inventory is worth noting—it’s helping to rebalance the market and provide more opportunities for those looking to buy.

In short, while national conversations may focus on uncertainty, the Nashville region is showing steady progress. Our local economy remains resilient, and the housing market is adjusting in ways that could benefit both buyers and sellers in the months ahead.