For certain investments, including real estate, paying attention to trends is key to keeping up with the market to make smarter purchases. You’re far better off buying a home in an “up and coming” area, versus a neighborhood that’s on the decline. For a popular, lively city like Nashville, house hunting in hot spots pays off when it comes time to sell in the future. To determine where buyers are looking and why, consider the top neighborhoods in Nashville and their recent home value estimates.

The Nations (37209)

Located just west of downtown Nashville, homes in The Nations have great investment potential. Over the last year, home values rose 12.8 percent, and are expected to rise another 4.6 percent through 2016. For new homebuyers, The Nations aren’t out of reach. The median home value is $195,300, which is only slightly higher than the national median value of $180,800. Zillow ranks The Nations a 9.6 out of 10 in terms of market health as of July 2015, so the majority of buyers can feel confident in purchasing without losing equity for the time being.

Whispering Hills (37211)

Much like The Nations, Whispering Hills is fairly affordable and is conveniently located just southwest of Vanderbilt University and just east of Nashville International Airport. The median home value is $170,500, lower than the national median, which represents an 11.5 percent increase in value year-over-year. The market is considered great for sellers, as the median sale price of $199,700 is significantly higher than the median value. This price differentiation might be due to higher demand and lower inventory, forcing buyers to pay premiums for homes in Whispering Hills higher than their estimated worth.

Donelson (37214)

Donelson is home to Nashville International Airport and the areas just north. Homes in Donelson have a median value of $156,900 which increased 11 percent in the past year and is expected to rise another 2.7 in the next year. Like Whispering Hills, Donelson’s median sale price – $170,300 – is higher than the median value, rendering it a hot seller’s market at the moment.

Don’t forget, too, that development follows demand. Typically, when a great number of residents move to a specific area, the more the neighborhood grows in parks, nightlife, restaurants and overall quality. You’re not only making a good investment for the future, you’re ensuring a better lifestyle during the time you live in a trending neighborhood.

If you’re not ready to settle down, leasing is always an option. Nashville renters, who face a median $1,437 per month citywide, experience and benefit from the same retail and community development in popular areas without the burden of down payments or the costs associated with homeownership.