Nashville Real Estate Outlook 2016
5 things we think will happen in Nashville's estate market in 2016.
Published on: Mar 3, 2016
Transcripts - Nashville Real Estate Outlook 2016
Real Estate Outlook
It’s time for us to throw our annual darts at the Nashville real estate market and see
what we can predict for 2016. Last year we looked into our crystal ball and did fairly
well, so here’s our shot at this years predictions.
1. Faster Rising Condo Prices
Buying a singlefamily home in some of the trendiest neighborhoods in Nashville has
become price prohibitive for many people. The unprecedented increase in home values
has left few options for first time homebuyers. However, condo/townhome prices have
not increased at the same furious rate as singlefamily homes.
I expect that to change this year as condos/townhomes offer a more affordable option to
landing in one of these hot areas. Also, combined efforts from the City of Nashville and
local developers to create more liveworkplay developments will make living in the city
more attractive than ever, which as a result will drive up condo/townhome prices faster
than we’ve seen in recent years. But who needs a yard if you can walk to everything
and have public parks around every corner?
2. Singlefamily home prices won’t be as dramatic
Staying on the same topic of prices, I think that singlefamily homes won’t see the same
10% increase in 2016 that we saw in 2015. Nashville has a white hot real estate market,
so I could be proven wrong here, but we saw a leveling out of prices towards the end of
2015. This could be a sign that the market is starting to stabilize as home prices have
begun to reach their peak of affordability in some areas.
Another factor is that Nashville had a record number of building permits issued for 2015,
which should help alleviate the housing inventory woes, which in turn will help slow
down the rising costs of homes. All things considered, Nashville will still see a nice
increase in values – just not at 2015’s pace.
3. Builders shift focus to other areas
Historic neighborhoods have begun to enact measures to prevent the common practice
of tearing down older homes and building two properties on one lot. A good example of
this is the popular WaverlyBelmont and 12 South area that is imposing a historic
overlay to prevent this type of construction. We see both sides of the coin on this issue.
Nashville has a huge shortage of home inventory and building two homes on one lot
helps to alleviate this issue, but if done irresponsibly it can alter the look and feel of a
For builders that prefer the method of placing two homes on one lot, these overlays will
help shift their main focus to other neighborhoods that are less restrictive. Wedgewood
Houston and Woodbine were already on our shortlist last year for hot neighborhoods to
watch, but I think these two will explode with new home activity this year as builders
look for other options.
4. Hottest Neighborhoods
This brings us to our next point. As stated above Wedgewood Houston and Woodbine
will once again be on our list of hot neighborhoods this year. With the Core’s Six10
Merritt underway, increased activity on nearby 8th Ave and builders shifting more
attention to neighborhoods without protective overlays, Wedgewood Houston is primed
to have a breakout year.
The other hot areas to watch include the usual suspects of Germantown, the Nations,
East Nashville and Inglewood
5. More affordable housing options.
New Mayor, Megan Barry has been very vocal about her support for creating more
affordable housing options in Nashville. These efforts have already begun to take shape
as the city just awarded $2 million in grants to developers to build 57 homes in North
Nashville. While this is a small number compared to the amount of affordable homes
needed, this is a step in the right direction and we should see a continued push for more
options under Barry’s leadership.
Nashville’s real estate market is still on the upswing and there are more than 80 people
moving here a day. Here’s 75 reasons why some of them are moving to Nashville.