NASHVILLE, Tenn. (WKRN) — If you are looking to buy a home in Nashville, you will need a six-figure salary, according to the latest data. The necessary household income for a median-priced home in Nashville is up 19% from last year.
“The rising interest rates has definitely been a factor for affordability for a lot of residents in the Middle Tennessee area,” explained Kevin Wilson, president-elect of Greater Nashville Realtors, adding that rates are “hovering in the mid-sevens.”
The rates, combined with rising home prices, are making it more difficult than ever to buy a home in Music City.
“Nashville has a higher median home sale price currently coming out of October at just over $472,000,” Wilson told News 2.
That combination puts buying a home out of reach for many in the Nashville area, especially first-time buyers.
“That’s mostly due to the amount of supply in the market,” Wilson said . “It’s making it very difficult for buyers to purchase a single-family home in this market when their income is not rising at the same rate as the prices.”
A homebuyer needs to earn more than $124,000 to afford the median-priced Nashville home according to Redfin Analysis, boxing many out of the housing market. Redfin reported the typical American household earns about $40,000 less than the income needed to buy a median-priced home.
While you might have to sacrifice some square footage when it comes to single family homes Wilson said affordability is still out there. The key is finding the inventory.
“Nashville is still a very hot city for people looking to move. We are still seeing significant migration to our city and to the Middle Tennessee area, and so that’s going to continue to put a strain on our housing market and affordability in the Middle Tennessee area,” he explained.