Tennessee’s Tax Perks and High Demand Fuel Nashville’s Luxury Condo Craze

The center of the country music scene, Nashville, TN, continues to serve up Southern hospitality. It's a hot spot for people to live and visit, but the Music City has been on the map for some time—and the party hasn't stopped.

"Tennessee as a whole became an attractive destination for many, offering a lower-cost alternative to high-priced markets like California and New York," explains Anthony Smith, senior economist at Realtor.com®. "Homebuyers were able to find more space and a lower cost of living, all while benefiting from the state’s lack of income tax."

In downtown Nashville, housing and hotels have been the main attraction for developers looking to put down roots, and now Marriott is expanding its brand in a ritzy part of the Nashville.

“With The Residences at The Nashville EDITION, our goal is to build the finest residential building in this important American city,” Mick Walsdorf, CEO of Tidal Real Estate Partners, tells Realtor.com.

Tidal Real Estate Partners and Left Lane Development have led the development—in collaboration with Marriott International.

The Residences at The Nashville EDITION is located in The Gulch neighborhood. The boutique property, in an upscale neighborhood, will feature 84 condominiums fully serviced by the hotel. The top 15 floors of the new 28-story hotel will be dedicated exclusively to the condo owners.

The units range from one to four bedrooms, starting at $1.65 million.

“EDITION’s warm and elegant interior aesthetics, as well as their true commitment to luxury, are in our view, perfectly tuned for Nashville," says Walsdorf.

Attention to detail is what's key in keeping with the Nashville vibe. The high-rise will have a glass tower offering residents views of the Tennessee hills, along with a dedicated lobby, valet, and concierge. A private gym, golf simulator, grill stations, and an outdoor dining area will be available only for residents, not hotel guests.

The high-rise, in its presale stage, with welcome its new residents in 2028.

"This development is more than merely another hotel branded residence—it is a statement about where the city of Nashville is headed in its next chapter as a truly cosmopolitan destination known the world over," says Walsdorf.

Building boom

Nashville has been experiencing a building boom for the last decade. In 2025, alone, more than 2,000 permits have been issued by the city of Nashville for residential and commercial construction of various sizes.

"Downtown development has largely focused on building upward, with new high-rise condos and mixed-use projects reshaping the skyline," says Smith.

The median list price for Nashville is $605,000 with homes spending a median days 69 days on the market, as of September Realtor.com data.

"Meanwhile, surrounding areas such as Brentwood, Franklin, and Mount Juliet continue to expand, appealing to luxury buyers seeking more space and newer construction," Smith says.

At one point, Tennessee Gov. Bill Lee was concerned for safety when he saw the amount of cranes downtown, according to The Hillsboro Globe.

"Nashville began gaining momentum in the early 2010s, but its popularity ramped up significantly during and after the pandemic, when remote work and lifestyle flexibility made the city’s mix of culture, affordability, and opportunity even more attractive," adds Smith.

The demand is there and brands are jumping on it. This year, 10 hotels opened offering 1,250 rooms. This is already ahead of 2024, when eight hotels opened with an additional 1,393 rooms, according to Nashville Music City.

"With recent expansion closer to the city center and home price growth in some neighborhoods, it is likely that some residents have been displaced by rising costs or have chosen to take advantage of rising home values and sell their homes," Smith observes.

"This comes along with upscale infill housing and adaptive reuse projects replacing older structures and attracting a new wave of residents."