NASHVILLE, Tenn. (WKRN) — A new Zillow study found Nashville is experiencing “skrinkflation,” meaning homebuyers are paying more for less square footage when compared to before the pandemic.
The houses seeing the most shrinkflation are million-dollar-plus homes.
“If I had to sum it all up, it would be location, location, location,” said Roger Richards, a realtor with Village Real Estate.
The Zillow study found on average, million-dollar listings in Nashville are 400 fewer square feet than they were pre-pandemic.
Richards said buyers’ priorities have changed.
“You have a lot of these unique, niche neighborhoods and the most notable ones are 12 South, Sylvan Park, and Lockland Springs. Now, they have a great walkability factor with shops, local restaurants,” he said.
Zillow shows these homes having a median size of roughly 3,100 square feet and an average age of 17 years.
“The interesting aspect is that these were built at an older date and people still want this location. And right before the pandemic they’re on the threshold of that 800 range, and with COVID-19, it just pushed them over the edge,” Richards said.
For buyers who did agree to take less house for more money, currently, numbers show they’ll still come out ahead.
“It’s still a good thing for sellers,” Richards said. “No matter when you bought, you’re still going to get appreciation.”
Despite this shrinkflation trend, Zillow found buyers can still get an average of four bedrooms and three-and-a-half bathrooms for $1 million.