Nashville is poised to break records once again this summer, and we’re not just talking temperatures.
According to the latest RE/MAX National Housing Report, the median home selling price in April reached $450,000.
At the start of 2022, the median home price had just surpassed $400,000. The new report notes that the median selling price is now $451,750.
While transactions have fallen by almost 4% over the last year, the housing stock has increased by more than 12%. But Nashville could always use more.
Here’s how homebuyers, realtors, and local officials navigate Nashville’s hot housing market.
Looking to buy your first home in Middle Tennessee—and stay on budget?
Although real estate prices have risen to unprecedented levels in many of the prime locations around Middle Tennessee, there are still more affordable options if you’re willing to expand your location parameters. Here’s what first-time home buyers should know.
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Brokers resort to telling the “brutal truth” to out-of-state buyers
Out-of-state buyers are flocking to Middle Tennessee, but many are moving in that direction expecting the same affordability and pace of buying they heard about years ago, forcing real estate agents to exercise a certain “brutal” honesty with potential buyers Helping buyers refocus. Expectations.
“Foreign buyers often have this romanticized story about the greater Nashville area in their minds,” Copeland said. “It’s still an accessible market when you compare it to Chicago or Southern California, but many out-of-state buyers still live in the fantasy that they can get an acre of land with a three-bedroom, two-bathroom home for $300,000 . They could get that two years ago. Not anymore.” Here’s why.
Related:As the Nashville dining scene keeps changing, here’s your summer guide to what’s new in Music City
How does the recent rate hike affect your home buying plan?
Mortgage rates hovered just under 3 percent in November 2021. Now, an average interest rate on a 30-year fixed-rate mortgage averages about 5.1 to 5.25 percent.
That means the cost of borrowing goes up.
Are rents expensive in Nashville?
Some rents in Nashville are actually getting too damn high. According to a December 2021 Zillow report, the typical rent in Nashville has risen to $1,788, an increase of 18.9% since last year.
Related:‘Unprecedented times’ as Nashville rents soar to new heights
Not only that, but tenants are also facing rising renewal rates. With an average asking rent of $1,539 throughout the Nashville metro area, including Davidson County, Murfreesboro and Franklin, many find themselves in a difficult situation between staying or finding a new home.
What about affordable housing in Nashville?
Several projects are in the works to bring mixed-income developments to Nashville, including one right next to the city’s newest stadium.
MarketStreet Enterprises, the local real estate development and investment firm responsible for creating the Gulch neighborhood as it is known today, recently released details of its $123 million mixed-use site, Geodis Park and Nashville Speedway separates.
In East Nashville, the Metropolitan Development and Housing Agency recently broke ground on the Cherry Oak Apartments, a 96-unit mixed-income multifamily building at 705 South 6th Street.
In May, Metro Council approved a program to provide tax incentives for mixed-income housing.
More:Nashville continues to grow: New projects and developments to be seen in Music City
The pay-in-tax program, known as PILOT, would provide up to $3 million in tax breaks each year for new Davidson County real estate projects offering mixed-income housing with at least 60% of their units listed at market price.
Nashville’s closest neighborhood?
On the southern edge of the Gulch, a neighborhood that grew out of a derelict rail yard just 20 years ago, a new mixed-use neighborhood is emerging, Paseo South Gulch.
The small neighborhood was conceived as a blueprint to accommodate the city’s urban growth while preserving Nashville’s character through heritage preservation.
More:Things to Do in Nashville This Summer: Your Guide to Fun in Middle Tennessee This Summer
How big is too big?
Another problem facing homeowners and renters is that some views are being obscured by ever-tall buildings.
Several have questioned the city’s process, which allows developers to request additional height for downtown buildings, prompting a lawsuit.
Coming up: East Bank Blvd
Subway documents released in April show a new arterial boulevard on Nashville’s East Bank could cost as much as $175 million, including a potential new connecting bridge over the Cumberland River.
The application offers new insight into the potential overlap of numerous projects in an area that has quickly become one of Nashville’s hottest areas for major development.
Meet the developer reshaping the Nashville skyline
High-rise developer Tony Giarratana is investing $1 billion to build four skyscrapers in the heart of the city that will change the skyline and, in some cases, look down on his 45th-floor penthouse at 505 Church Street. Read more about Tony G’s project and legacy in Nashville.
Tennessee reporters Sandy Mazza, Arcelia Martin, and Cassandra Stephenson contributed to this report.