According to the July 2015 Nashville Residential Report, downtown Nashville has 2,384 condominium units within 40 different properties, which makes up about half of downtown’s housing landscape. At the time the report was published, only about 40 re-sale units were available to purchase, though, making it the lowest supply the downtown area has ever seen.
There’s no doubt the recession slowed new condominium development substantially around Nashville, but since 2011, many of the city’s most prominent condo buildings like ICON, Terrazzo, Viridian, and Encore have seen a relatively nice jump in price-per-square foot, with each building showing annual increases every year with the exception of Viridian, which has actually seen a slight drop in price per foot since 2014, if you include the sale of its penthouse unit.
Of the four buildings, Terrazzo is downtown Nashville’s most expensive building by far, with an average price per square foot of $485 through the first half of 2015. Over that same timeframe, ICON’s average price per square foot was recorded at $452, with Encore at $396 per square foot and Viridian at $379 per square foot.
In 2009, the first year all four buildings were selling together, prices were significantly lower, with Terrazzo having an average price per square foot of $341, ICON a price per foot of $303, Encore at $243, and Viridian at $275.
So what does all this mean?
At the very least, the sizable increases in price over the last several years certainly prove the condo market in downtown Nashville has recovered since the recession, even despite the lack of inventory most certainly playing a role in what continues to be a red hot market right now.
But with most of downtown Nashville’s largest projects under construction being rental and apartment buildings, finding that perfect new downtown condo won’t be getting easier anytime soon. In fact, as of now, six major residential projects are underway around the downtown area, which combined will deliver 1,443 rental units by 1Q 2017.