The “Great Reset.” That’s what some professionals are calling the post-pandemic era of real estate, marked by shifts in interest rates, construction costs, and market demand.
So, what does that mean for Nashville?
Last week, we shared that Music City remains a highly sought after real estate market, ranking No. 1 for the third year in a row on the Urban Land Institute’s 2024 Emerging Trends report for the US and Canada.
As the oldest, largest network of real estate and land use, ULI annually forecasts high-level trends for the next year in real estate. Here’s how a few could apply to Nashville.
Forecast: Housing affordability remains an issue, putting on more pressure to increase housing supply.
In Nashville: Nashvillians must earn $124,095 to afford a median-priced home. In October, the housing inventory in Nashville reached five months. This number is up from 3.5 months at the same time last year, and falls within the recommended five-to-six months healthy market range.
Forecast: As remote work grows, the reduced need for office space could potentially affect migration patterns and housing preferences.
In Nashville: Nashville gained 10,000+ remote workers during the pandemic — a net gain comparable to Dallas and Portland. Nashville’s office vacancy rate is 20.8%, the highest in over a decade. A projected pause in new office supply could bring relief to the market.
Forecast: High interest rates and increased rental supply are temporarily affecting rental rates.
In Nashville: The average monthly rent in the Nashville metro area stands at $2,165, with median rent prices showing a 1.81% year-over-year increase.
Dig into the full report, including other real estate trends, on ULI’s website.