The construction market in Nashville is weathering the economic downturn rather well.
Although COVID-19 has had an impact on future construction loans, Nashville still has major developments moving forward. The Virgin Hotel is about to open, and the 5th and Broadway Oliver McMullen project is expected to wrap up by the end of 2020 or in early 2021. The residential, hospitality, and office sectors have slowed down, but tech giants have not scrapped plans to move to the city. New Amazon offices and Facebook data centers should help buoy the local economy.
The ongoing trade war and supply chain disruptions from the pandemic have made sourcing imported materials more difficult, and some trades are still facing labor shortages, but construction costs are unlikely to rise significantly. The city government has canceled some incentives and raised property taxes, which could dampen growth in the construction market going forward, but Nashville is still expected to see growth in construction volume starting next year. COVID-19 has created some uncertainty in the market, but Nashville has synergy between large business and hospitality that should help get things back on track.