Tennessee’s housing market has experienced a remarkable surge in value over the past five years, mirroring a national trend but with significantly higher appreciation. An analysis of Zillow’s Home Value Index data, considering both the latest monthly values (December 2024) and the annual average of median home values, reveals a concentration of the state’s most expensive ZIP codes within the expansive Nashville metropolitan area. The top 25 most expensive ZIP codes showcase this trend, with the top five exhibiting particularly impressive growth.
The most expensive ZIP code, 37046, encompasses affluent communities south of Nashville, including College Grove and Arno, and features exclusive amenities like the Troubadour Golf and Field Club. High median and mean household incomes ($162,712 and $239,336, respectively) reflect the area’s affluence. Home values in this ZIP code have seen a dramatic 68.5% increase over five years, rising from $709,135 in December 2019 to over $1.194 million in December 2024, with a 4.5% increase in the last year alone.
The second most expensive ZIP code, 37014, neighbors the first and centers around Arrington and Almaville, slightly closer to Nashville. While still exhibiting high household incomes (median: $104,938; mean: $197,098), it experiences even more pronounced growth in home values, appreciating by 78.4% over the five-year period to reach over $1.186 million. A significant portion (over one-third) of households in this area earn $200,000 or more annually.
Brentwood, encompassed by the third most expensive ZIP code (37027), continues the trend of affluent Nashville suburbs. With a substantial percentage (38.6%) of households earning over $200,000 annually and a high median household income ($156,002), this area has experienced a 74.4% surge in median home values since December 2019, reaching just under $1.134 million. The annual increase of 5.7% highlights the continuing upward trajectory.
Southwest of downtown Nashville, ZIP code 37215, encompassing Forest Hills and other communities like Green Hills, represents the fourth most expensive area. High household incomes (median: $151,156; mean: $226,979) with over two-fifths of households earning above $200,000 annually characterize this area. While experiencing slightly less dramatic growth than the top three, home values still appreciated significantly by 63.4% over five years, reaching over $1.108 million.
The fifth most expensive ZIP code, 37350, shifts away from the Nashville area to Lookout Mountain, an affluent suburb of Chattanooga. This area boasts an even higher percentage (47.3%) of households earning over $200,000 per year, with a median household income of $195,063 and a significantly higher mean income of $305,525. Home values in this ZIP code have experienced startling growth, rising by 73.4% from $566,589 in December 2019 to $982,577 in December 2024.
This analysis of Tennessee’s most expensive ZIP codes reveals a clear trend of significant home value appreciation, particularly in affluent suburbs of Nashville and Chattanooga. High household incomes, coupled with desirable locations and amenities, contribute to the escalating property values. The data highlights the robust nature of Tennessee’s housing market, especially in these select areas, and underscores the substantial growth experienced over the past five years. This growth, while mirroring national trends, has been particularly pronounced in Tennessee, making it a standout performer in the U.S. housing market. Further analysis of market dynamics and contributing factors could shed additional light on the underlying reasons for this extraordinary growth and its potential implications for the future of Tennessee’s real estate landscape. The concentration of wealth in these areas, reflected in the high household incomes, suggests a strong demand for high-end properties, driving the escalating home values. This trend may also contribute to increasing economic disparity within the state, as affordability in these areas becomes increasingly challenging for a significant portion of the population. Further research could explore the socio-economic implications of this trend and its potential impact on community demographics and access to housing.
