NASHVILLE, Tenn. (WKRN) – As we know, 2020 was a remarkable year for the housing market, both in Nashville and across the nation.
The full U.S. housing stock gained about $2.5 trillion in value last year, Zillow says, including $2.2 trillion from appreciation of existing homes and $274 billion from new construction.
U.S. housing gained nearly $2.5 trillion in value in 2020 — the most in a single year since 2005, according to a new Zillow analysis. This year is expected to be even stronger with heavy buyer demand pushing prices higher.
In-Metro Nashville homes are now worth a total of $213 billion, gaining $12 billion in 2020. This makes Nashville the 30 most valuable out of the 50 largest U.S. metros, according to new data from Zillow.
“It represents additional savings and wealth creation for these households,” Chris Glynn, a Senior Economist at Zillow said. “For sellers, it means they can take advantage of strong demand in a robust market in the coming year to have options to sell if they’re interested in that.”
Glynn says the contributing factors include low interest rates, a wave of millennials aging into peak ownership years and a re-shuffling in housing due to COVID-19. He added the increase in numbers is not due to inflation, rather, a result of incredibly strong buyer demand.
Checko says the data shows as great as we’ve been doing, there’s still more room for growth, there’s more green space available, if you will.
“I think the good news is for the time being for at least another decade or so we have areas that are still ripe for gentrification and have some room to grow.”
Last week, News 2 told you that wealthy out-of-towners are driving up Nashville home prices, that includes those from California, a state that Zillow says, makes up more than a fifth of the country’s housing value.
Thankfully, Checko says Nashville is still relatively affordable compared to other cities and we won’t have to worry about our home prices getting as high as the houses in California.
“When people talk about prices going up I often reference other cities and what they’re doing in comparison to Nashville, saying ‘hey, it’s less expensive here than it is in Chicago, New York City or Los Angeles and you want that to remain true because then you’re inbound people from those places are more apt to feel comfortable with their investment then your people buying in market will feel the same when thinking about the contrast thinking about other places to live.”
News 2 is reporting on Nashville’s historic growth and the growing pains that come with it. Click here for more Nashville 2021 reports.