Nashville ranks fourth in the US in homebuilding as costs skyrocket
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Nashville is in the top five when it comes to building new homes, per the latest analysis by real estate company Redfin, Axios' Maxwell Millington reports.
What they found: Nashville had 26.6 single-family building permits per 10,000 people in the first quarter of this year, the fourth-most per capita among U.S. metros.
Why it matters: Home prices have been skyrocketing in Nashville. Monthly mortgage payments are close to a record high.
- The area's low supply of available homes is another factor that has complicated the market and driven high prices.
Driving the news: The latest figures have shown some improvement in the housing supply. But experts say ongoing residential construction will be necessary to keep up with needs.
- "There still aren't enough homes to meet the pace of household creation, and we need to be more prepared when demand inevitably picks back up," said Redfin chief economist Daryl Fairweather.
Zoom out: Single-family and multifamily building permits are up from pre-pandemic numbers in most U.S. metros, Redfin found.
- Of note: Redfin defines "single-family" as buildings with one to four housing units and "multifamily" as buildings with five or more housing units.
What they're saying: Local real estate developer Josephine Saffert tells Axios the need for new builds in Nashville remains high.
- "Density basically promotes affordability," Saffert says.
- "If there's no inventory, buyers don't have many options and essentially the highest bidder wins," she says. "Once you have that imbalance, you really see the price spikes."
The bottom line: Ramping up new home construction will help balance the market, if only a little.