NASHVILLE, Tenn. (Apr. 27, 2026) – Real estate remains a central force in Tennessee’s economy, generating billions in economic activity and supporting industries beyond housing, according to newly released data from the National Association of REALTORS® (NAR).
In 2025, the real estate activity contributed $97.7 billion to Tennessee’s gross state product, accounting for 16.6% of the state’s total economic output–up from $84.2 billion (15.7%) the previous year.
“Real estate is a cornerstone of Tennessee’s economy, driving growth far beyond the transaction itself,” said Jack Gaughan, 2026 president of Greater Nashville REALTORS®. “Every home sale strengthens communities and fuels local businesses. REALTORS® specifically are on the front lines of that impact, helping connect buyers and sellers while driving economic growth across the state.”
A typical home sale in Tennessee now generates $123,440 in economic activity. This number reflects a variety of factors, including income for real estate professionals, expenditures related to home purchases, new construction, and the extended “multiplier effect” as those dollars circulate through local businesses.
New home construction accounts for the largest share of the total impact at $63,870 (51.7%), highlighting the connection between home sales and ongoing development across the state. For every existing home sale, one-sixth of a new home’s value is added to the economy.
With Tennessee continuing to attract new residents and businesses, housing demand and related economic activity are expected to remain key drivers of the state’s momentum. This data reinforces the real estate industry’s role not only in facilitating homeownership but also in sustaining a wide network of economic opportunity.
“With more than 6,500 dedicated real estate professionals in our local association, our members play a vital role in helping drive Tennessee’s economy forward,” said Jarron Springer, CEO of Greater Nashville REALTORS®. “They are working hard to make the dream of homeownership a reality for Tennesseans while helping them build long-term wealth through real estate.”
About Us: Greater Nashville REALTORS® is one of Middle Tennessee’s largest professional trade associations and serves as the primary voice for Nashville-area property owners. REALTOR® is a registered trademark that may be used only by real estate professionals who are members of the National Association of REALTORS® and subscribe to its strict code of ethics.
