Many residents of Nashville, TN, feel owning a home there is out of reach, according to a recent poll.
In a Vanderbilt University study, 82% of Nashville residents report that they cannot afford to buy a house in Davidson County, and only 36% said they plan to buy a house in the county.
The current median listing price in the Nashville metro is $527,225.
“Unaffordability threatens the long-term fabric of the community, and the numbers show that most residents are concerned about being able to afford a home in Nashville,” Vanderbilt Poll co-director Josh Clinton said in a statement. “Faced with Nashville’s rapid growth, residents are worried about being priced out of the city they call home.”
The report reveals that 79% of residents believe Nashville’s population is growing too quickly.
Housing affordability is a major concern, with nearly three-quarters (73%) of respondents identifying it as a top priority.
However, residents are divided on how to address it: A slight majority (53%) prefer limiting multifamily housing—such as duplexes and apartments—to denser areas to maintain the character of less-populated neighborhoods, while a significant minority (47%) support permitting multifamily development citywide as a way to boost local economic vitality.
“Nashville has really become a big city and, as such, we are having the same challenges as many big cities,” real estate agent Jake Kennedy of Compass Real Estate in Nashville tells Realtor.com®. “There just isn’t enough affordable housing right now. It really feels like right now, most of the multifamily projects are targeted at the luxury market where developers get a higher ROI.”
Homebuyers looking in Nashville suburbs
As people get priced out of Nashville proper, they are headed to other suburbs for more affordable housing.
“I do know a lot of people commute to Nashville from Clarksville, and that it is a rapidly growing market offering more affordable housing options and a strong local economy,” Liz Gatlin, a Nashville real estate broker and architect with Southern Athena, tells Realtor.com.
The median listing price in Clarksville is just $357,950, representing a 32.1% savings over Nashville’s median listing price.
According to Nashville real estate agent Dylan Calvo of the Calvo Group, other suburbs that are growing in popularity with buyers include Dickson, White Bluff, Springfield, Murfreesboro, Manchester, and Portland.
“People are still buying—they’re just going further out to get more for their money,” he tells Realtor.com.
Calvo’s been showing more houses in suburbs that are within commuting distance of Nashville, and offer more affordable housing options.
Kennedy says, “Gallatin seems to be absorbing quite a few people these days—and I’m hearing people talk about Ashland City more than I’ve heard in previous years combined.”
Pandemic’s impact on prices
Calvo says Nashville housing prices exploded during the pandemic. “It was common for houses to get $50,000 over asking,” he recalls.
The median listing price in Nashville in February 2020 was $369,000—a whopping $158,225 less than it is today.
Jeanne Ellis wrote on Facebook, “Nashvillians can’t afford to live in Nashville. Californians came during COVID and ran up the prices. The greater Nashville area is a little California now. Nashville isn’t Nashville anymore!”
Nashville property taxes have gone up 60% over the last five years, according to Fox 17.
Mark Rowan wrote on Facebook, “Property taxes have gone through the roof and we get nothing in return except speed bumps and raised crosswalks that look like they were designed and installed by preschoolers.”
Buyers getting creative
Calvo says that even though Nashville is technically a buyer’s market right now, he’s still seeing people facing major affordability challenges—and getting creative.
“More people are considering houses that need a lot more work, just so they can get something in their budget,” he says.
Calvo says buyers are also looking into grant programs to help with down payments. “We had one buyer in Clarksville who was able to put no money down,” he shares.
According to Calvo, the people who are purchasing in Nashville are negotiating concessions such as closing costs to reduce expenses. “Sellers are really willing to work with buyers right now,” he says.