NASHVILLE, Tenn. (WKRN) – Despite Nashville home prices rising, many continue to hear that it’s cheaper to buy a house than it is to rent.
Stessa researchers are broke down why that is and also looked at just how much in some instances. Overall, though, both home prices and rent keep rising, and it comes down to one phrase: supply and demand.
Zillow says home values in Metro Nashville have grown more than 15% year over year due to lack of inventory and high demand.
As for rents, they’re up too after stagnating during the high of the pandemic. Zillow says rents have roared back to a level higher than if the pandemic never even happened.
And the reason these prices are growing so fast comes down to the same phrase: supply and demand.
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Now that the housing market is plagued by short supply, more families are deciding to rent longer because they simply cannot find a home. As a result, the amount of people apartment hunting remains high, allowing property managers to be highly selective and, in turn, raise prices.
Below, you’ll find a summary of the data Stessa found in the Nashville, TN metro area:
- Difference between monthly owner & renter payments: -6.9%
- Median monthly mortgage & property taxes: $1,261
- Median monthly rent: $1,354
- Median home price: $329,597
“If you own a house you’ll always be gaining something,” said Amanda Peterson, a real estate agent with the Ashton Real Estate Group of RE/MAX Advantage. “I purchased a home and I have enough equity in it from one year, if I was to sell today, I’d have $70,000 to put on a new home.”
It’s great news for current homeowners but the rise in home values is still a bit unsettling for current renters. Peterson says there’s nothing to be afraid of when it comes to buying a home.
“I would say that with today’s programs a lot of times you can get into a house with a really low down payment, sometimes no down payment and most of the time with HOA fees and insurance included your rent is higher than what a mortgage rate would be,” Peterson said. “Having equity is so important having assets is so important versus just having rentals you’re just pushing out money. When you’re renting, those people are paying off their homes and their mortgages with your rent money when you’re purchasing you have the opportunity to in two years or less rent that property out yourself and make extra money or sell it and have equity and buy another house.”
Stessa came up with their figures by analyzing data from Zillow, the U.S Department of Housing and Urban Development, and the U.S Census Bureau.