NASHVILLE, Tenn. (WKRN) — While many major markets are severely under building, new data shows Nashville has managed to add enough housing to keep pace with job growth.
However, local realtors say with so many people moving here from out of town, we’re starting to fall behind.
“People continue to move here in droves,” Robbie Drimmer said with Compass Real Estate. “We’re seeing more and more people move to Nashville than ever before.”
In addition, more people are moving into Greater Nashville than are moving out.
“The folks that are here, they like it, it’s a wonderful city to live in and if they move where do they go?” Pete Hawes at RE/MAX Homes and Estate asked.
A new analysis by Zillow shows those moving here are cashing in from rising property values at their current locations and finding bigger homes in less expensive areas, like Greater Nashville, where the typical home value in April 2021 was around $321,000 up 11.0% since April 2020.
“The local Nashvillian who’s been here a long time, the prices to that person are really high,” Hawes said.
But to many people from out of state, it’s a steal.
Zillow found out-of-towners moving into Nashville relocated into zip codes with $50,689 lower home values on average than where they moved from.
The top origin metro areas for people moving to Nashville in 2020 were Chicago, Los Angeles, New York City, Dallas, and Atlanta.
The top zip codes for inbound movers in 2020, in descending order, were as follows:
- 37064 (around Franklin)
- 37201 (downtown, riverfront Nashville)
- 37027 (around Brentwood)
- 37174 (around Spring Hill)
- 37075 (around Hendersonville)
Data from Apartment List shows we’ve added close to 135,000 new housing units from 2010-2020, increasing our housing stock by 20%.
“Over the same period, Nashville added 246,000 new jobs, an increase of 33%. A healthy housing market should add a new housing unit for every 1-2 new jobs as the local economy grows. In Nashville, 1.8 jobs have been added for every new housing unit, indicating that the area is building sufficient new housing to keep pace with demand,” the report said.
Local realtors say we’re struggling with demand because a lot of our new residents, or out-of-towners, can’t be tracked by the number of Nashville jobs because many of them work remotely.
“There really isn’t enough inventory to support the buyers that are moving here daily,” Hawes said.
Within the Nashville Metro, Williamson County saw the fastest growth in new housing units, with an increase of 32%. Cannon County built the least new housing, with an increase of two percent.
“The builders are doing their best,” Hawes said, adding understandably, it takes time.