All in all, the construction market in Nashville proved robust throughout 2020. The overall market grew by 10.2% last year, driven mainly by the residential, healthcare, and infrastructure sectors.
Overall, the city of Nashville was spared the worst of the COVID-19-related recession. Unemployment spiked to 15.7% in April but has since fallen to 5.5%. This is lower than the national average of 6.2%. The overall number of construction workers grew slightly throughout the last year, seemingly unaffected by the pandemic. The market is expected to contract in the coming years, with only the education sector seeing growth. However, Nashville is expected to see a lot of investment in housing, offices, and manufacturing in the near future. At the top of the list is a new mixed-use development and an expansion of a General Motors plant outside the city center. Of the ten largest projects in the Nashville metro area, only two are within the city of Nashville itself. Over the next few years, we expect price pressure to decline modestly, as a relatively static labor pool is confronted with a decrease in overall construction volume.