- Meg Epstein is CEO and Founder of CA South, a real estate development and investment management firm based in Nashville, TN.
Since the pandemic has changed the nature of work, people are blurring the line between home, hotel and vacation. Much of the American workforce can – and plans to continue to – work from anywhere.
This trend, however, relies on flexible properties that meet the diverse needs of visitors and residents. This is where short-term rentals (STRs) can play a big role in Nashville.
Recent data from AirDNA confirms that there are 6,123 active STR listings in Nashville compared to the 19,557 rental apartments. This stat does not include homes, which make up well over 75% of the Airbnb pool.
The financial gains from STRs are also significant. According to data from AirDNA, Nashville leads the country revenue potential from short-term rentals with $126,331 and the closest being in Key West, Florida with $104,939.
Our city is ready to conquer this hot market, especially given the massive growth we are experiencing.
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A decade of transformational growth for the city of music
Nashville has seen an influx of new residents and high-paying jobs over the past decade, making the city one of the hottest real estate markets in the country.
A tweet from August 12, 2021 from Mayor John Cooper emphasizes this perfectly: “Our community is larger and even more diverse than ten years ago. We grew by 14.2%, nearly twice the national average. »
Recent census the data showed that 36 people travel to the region every day from major coastal cities such as New York, San Francisco and Los Angeles. Even amid pandemic concerns that have affected travel to Nashville, state tourism officials are confident that 2022 will see a return to the impressive numbers the city saw in 2019, which hovered around 16 million visitors.
It’s no surprise that Nashville has a track record of being a destination with the highest demand for hotel rooms in the United States, which helps contextualize the recent boom in hotel buying and building.
Late 2021, Blackstone —the investment group — bought the 192-room Courtyard by Marriott in a $99.6 million sale; and Dreamscape Cos. have teamed up with investment firm Meritage Group of San Francisco to buy the 230-room Holiday Inn & Suites in downtown Nashville for $74.7 million.
These acquisitions demonstrate the need for additional space, such as STRs, to satisfy the increasing number of tourists flock to Nashville.
After:Airbnb’s Emotional and Controversial Debate in Nashville
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Short-term rental will be a good investment for Nashville
A law Project could have helped Nashville meet STR’s request. HB 645/SB 871, was before the Tennessee General Assembly in 2022 seeking to change authorization codes to allow Nashvillians to host short-term rental (STR) guests in their primary residence.
This bill, which did not pass this time, would have allowed homeowners to rent out their primary residence – as opposed to rental properties – for short periods on Airbnb or other similar platforms. This permit distinction is essential: Residents must own and consider their home or apartment as their primary residence in order to qualify for STR status.
We need to update our permits and laws to reflect the realities of the new hybrid work, live and travel environment – which will help Nashville remain a competitive and premier destination for those looking to live, work and play in the Music City.
We have already done the incredibly difficult job of attracting growth and tourism. Now we need to provide the short-term rental condos our city desperately needs.
Meg Epstein is CEO and Founder of CA South, a real estate development and investment management firm based in Nashville, TN.
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