Nov 7, 2023 - Real Estate

You need a six-figure salary to buy a home in Nashville

Illustration of a door knocker in the shape of a dollar sign

Illustration: Sarah Grillo/Axios

A combination of higher interest rates and rising home prices has put buying a home out of reach for more people in Nashville.

Why it matters: Being boxed out of the housing market is one reason many Tennesseans and other Americans don't feel great about the economy, even if metrics like stock prices, unemployment and gross domestic product are healthy.

Driving the news: To afford a median-priced home in the Nashville metropolitan area ($455,000), a family would need a household income of $124,095 which is up 19% year over year in August, according to a Redfin analysis.

  • That's about $44,000 more than the typical Nashville-area household makes.

The intrigue: Affordable housing is a top issue in Nashville. It was a prominent topic in this year's mayoral race, and creatives who give Music City its identity have pondered leaving for a cheaper market.

The latest: Although some firms had predicted dramatic price drops in Nashville this year, that has not been the case.

Yes, but: The market does seem to have cooled down since a white-hot period in 2021.

  • Greater Nashville Realtors, which analyzes data across nine Middle Tennessee counties, found that median house prices in September had dropped slightly year over year while condo prices had ticked up a bit.

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