Six Fast Facts About The Tight Residential Market In Downtown Nashville
Downtown Nashville's residential market is on a roll, according to the Nashville Downtown Partnership, which released its annual report recently. Here are some details you should know.
• Strong demand for Downtown residential properties and a lag in inventory delivery mean a continuing increase in rental rates and condo prices. Rental occupancy is at/above 97% for the fifth consecutive year.
• Downtown housing prices have spiked over the past 36 months, as inventory is at a mere 2.6-month supply of resale units.
• With only 71 for-sale units set to deliver in 2017, and another 169 units in spec projects, condo demand is building and prices are escalating. Unless existing rental product converts, the pressure will continue to be on for buyers.
• Significant rental product delivery is expected over the next several years, and close to 1,000 apartment units will open this year, which will begin to slake some of the pent-up demand.
• According to the org's survey of property managers and leasing agents in Downtown rental properties, rental rates continue to rise in all categories.
• The only caveat is that smaller studio units seem to be capped at $1,500/month. Overall, units that yield the highest SF prices are studios ranging from 419 SF to 600 SF in newer rental properties that are walkable to restaurants and amenities.