Although hardly a surprise, recent reports have surfaced that continue to show downtown Nashville real estate is red hot right now. According to the Nashville Downtown Partnership’s 2015 residential report, rental occupancy around downtown is alarmingly close to 100%, while inventory on re-sale units has also declined to around a 1.2 month supply.
For some perspective, a “normal” housing supply is usually between five and six months.
By all accounts, several different factors are contributing to such a crazy time for Nashville real estate, including more corporate expansions and relocations coming to the downtown area, a strong pent-up demand among younger and first-time home buyers, and of course all those home buyers who still want to take advantage of low interest rates—which are expected to rise as early as next month, by the way.
Last year around this time, a similar report showed Nashville having right around a two-month supply, meaning the market has only gotten tighter within the last 12 months.
More affordable housing is badly needed around downtown Nashville to appease the growing demand for those young and first-time home buyers that were mentioned above, while it’s also possible to see some of the existing or newly developed rental developments eventually transition to Nashville area condos before it’s all said and done.
In 2014, Nashville’s downtown population grew by roughly 6%, which was expected, and is projected to grow by roughly 10.5% by the end of 2015.