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Nashville is once again poised to break records this summer and we’re not just talking about temperatures.
The median home sale price reached $450,000 in April, according to the latest RE/MAX National Housing Report.
At the start of 2022, the median home price had just eclipsed $400,000. The new report finds the median sale price is now $451,750.
While transactions are down nearly 4% over the last year, the housing inventory is up more than 12%. But Nashville could always use more.
Here’s how homebuyers, Real Estate leaders and local officials are navigating the hot Nashville housing market.
Looking to buy your first home in Middle Tennessee – and stay in your budget?
Despite home prices escalating to never-before-seen levels in many of the prime locations around Middle Tennessee, there are still more affordable options if you are willing to expand your location parameters. Here’s what first-time homebuyers should know.
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Realtors resort to tell out-of-state buyers the ‘brutal truth’
Out-of-state buyers are flocking to Middle Tennessee, but many are moving this way expecting the same affordability and pace of purchase they heard about years ago, which is forcing Realtors to muster up some ‘brutal’ honesty to help realign potential buyers’ expectations.
“The out-of-state buyer often has this romanticized story in their head about the greater Nashville market,” Copeland said. “It’s still an approachable market when you compare it to Chicago or Southern California, but a lot of out-of-state buyers are still living in that fantasy that they can get an acre of land with a three-bedroom, two-bath house for $300,000. That’s what they could get two years ago. Not anymore.” Here’s why.
How does the recent interest rate increase affect your homebuying plan?
Mortgage rates in November 2021 hovered just under 3 percent. Now, an average rate for a 30-year fixed-rate mortgage averages around 5.1 to 5.25 percent.
What that means is the cost of borrowing money is going up.
Are rents expensive in Nashville?
Some Nashville rents are indeed becoming too darn high. The typical rent in Nashville has increased to $1,788, up 18.9% since last year, according to a December 2021 Zillow report.
Related:‘Unprecedented times,’ as Nashville rents soar to new heights
Not only that, renters are also facing rising renewal rates. With the average asking rent at $1,539 across the Nashville Metropolitan Area, including Davidson county, Murfreesboro and Franklin, many are finding themselves in a tough position between staying put or finding a new place to live.
What about affordable housing in Nashville?
A few projects are in the works to bring mixed-income developments to Nashville, including one right next door to the city’s newest stadium.
MarketStreet Enterprises, the local real estate development and investment firm credited for the creation of the Gulch neighborhood as known today, recently released details for their $123 million mixed-use site separating Geodis Park and Nashville Speedway.
In East Nashville, the Metropolitan Development and Housing Agency recently broke ground on Cherry Oak Apartments, 96-unit mixed-income multifamily development located at 705 South 6th Street.
In May, the Metro Council approved a program to provide tax incentives for mixed-income housing.
The payment in lieu of taxes program, known as a PILOT, would offer up to $3 million in total tax abatement for new projects each year for Davidson County properties offering mixed-income housing with at least 60% of their units at market rate.
Nashville’s next neighborhood?
On the south edge of the Gulch, a neighborhood born out of a rundown railroad yard just 20 years ago, a new mixed-use district is underway, coined Paseo South Gulch.
The small neighborhood was envisioned as a blueprint to meet the city’s urban growth, while maintaining Nashville’s character through historic preservation.
How tall is too tall?
Another issue homeowners and renters are facing: Some views are being obscured by more and more towering developments.
Several have questioned the city’s process allowing developers to apply for additional height for buildings downtown, leading to a lawsuit.
Coming soon: East Bank Boulevard
Metro documents released in April show how a new arterial boulevard on Nashville’s East Bank could cost as much as $175 million, including a potential new connector bridge across the Cumberland River.
The application provides a fresh glimpse into how numerous projects may intersect in what has quickly become one of Nashville’s hottest areas for major development.
Meet the developer remaking Nashville’s skyline
High-rise developer Tony Giarratana is investing $1 billion to build four high-rises in the heart of the city that will transform the skyline and, in some cases, look down on his 45th-floor penthouse at 505 Church Street. Read about the project and Tony G’s legacy in Nashville.
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