Nashville may be the country music capital, but its housing fundamentals rock:
- Resale sales have risen 16% over the past twelve months.
- Home prices are up nearly 9% over the same period.
- Job growth has averaged 3.0% in the past year, thanks to the booming health care and entertainment industries.
Several builders have expanded to Nashville in the last four years, and more are on the way.
We hosted a dinner last week for 17 investors, developers, and builders—several of whom were division heads—and discussed the following:
Land supply varies widely by submarket.
- New home prices are 36% higher than resale homes.
- Entitlements are more challenging than most other areas in the region, with several cities demanding larger lots and lower densities.
- Several new master-planned communities will be opening in the next 12 to 18 months and will likely be on our top 50 master-planned community list by 2016.
- Cottage developments have become increasingly popular across all demographics.
- The 55+ crowd is moving here in droves and interested in age-restricted communities.
- The Franklin/Brentwood/Cool Springs employment center (south of Nashville) actually has more Class A office space than downtown Nashville.
- With demand for new homes far outpacing the supply, strong demographic drivers, and great affordability compared to other top cities, Nashville is poised to be a player on the national housing scene for years to come.