The Nashville metro area's real estate market is starting to level off, according to the latest data from Redfin/MLS.
Why it matters: After two-plus years of plummeting inventory and sky-high home prices, Nashville-area buyers have waited a long time for a little relief.
The minimum income buyers need to afford a typical Nashville home has more than doubled since 2020, per data from Zillow.
Why it matters: While sales have slowed down in recent months, prices have continued to climb — along with mortgage rates — putting homeownership out of reach for many residents.
A rezoning proposal in East Nashville for 1,150 apartments has become one of the most contentious land use disputes in recent city history and is up for yet another vote Tuesday night in the Metro Council.
Why it matters: The zoning dispute shines a spotlight on the push for more affordable housing units and on the negotiation of community benefits agreements for certain developments.
A massive apartment complex rezoning in East Nashville has been repeatedly delayed as its developer spars with Metro Councilmember Sean Parker as well as a nonprofit group.
Details: The Planning Commission unanimously approved the Riverchase apartment rezoning in February.
A new online tool unveiled by Mayor John Cooper yesterday will allow you to track new sidewalks, school improvements and other infrastructure projects in your neighborhood.
Why it matters: Cooper touted the initiative as a way to increase transparency and accountability.
Nashville is a hotbed for corporations gobbling up single-family homes.
- One in four homes sold in the first three months of this year was purchased by a corporation, according to data from Redfin. It's one of the highest rates in the nation.
Why it matters: Corporations have been making lucrative cash offers for single-family homes and then converting them into rental properties. It's another layer of complication for Nashville's stressed housing market.
State of play: The percentage of Nashville homes purchased by corporations grew from 17.3% in the first quarter of 2021 to 24.6% in the first quarter of this year.
- Investors' local market share increased even as they bought a smaller number of homes in Q1 2022 compared to the same timeframe last year, according to Redfin.
Driving the news: The issue has caught the attention of Congress. In June, the House Financial Services Committee released a bombshell report based on surveys of the five leading single-family rental (SFR) companies.
For the record: The five companies surveyed were Invitation Homes, American Homes 4 Rent, FirstKey Homes, Progress Residential and Amherst Residential.
- The report found that the companies have experienced explosive growth since 2018, adding more than 76,000 homes to their ownership roster. The companies have especially focused on the South.
- Using complicated financial mechanisms, the companies tend to make cash offers. Between 2018 and 2021, the companies offered $24.7 billion in bonds and other financial instruments to investors.
Of note: Their buying strategies zero in on neighborhoods with significantly larger Black populations than the national average, the report found.
What they're saying: "To meet investor's return expectations, SFR home landlords often prioritize maximizing profits," the congressional report concluded.
- "As a result, evidence suggests that renters in institutionally-owned SFR homes often experience higher rent increases, inflated fees, and diminishing quality of housing over time."
By the numbers: These companies are especially interested in neighborhoods with cheaper homes and higher rents.
- For instance, the average median home value of the companies' top 20 ZIP codes was $198,766 compared to the national average of $229,800. But the average rent in the companies' top 20 ZIP codes was 13% higher than the national average.
- The companies increased rental fees on tenants by 40% over the three-year stretch the survey examined. The number of tenants behind on rent increased from 11.3% in 2018 to 19.1% in 2021.
Nashvillians looking to buy a home have more options now than they have in more than a year, but prices have reached an all-time high for the region.
- The findings, released Tuesday by Greater Nashville Realtors, show that inventory of single-family homes shot up 47% over the last month as high prices and interest rates reined in some buyers.
A record-setting $50 million listing is just one indicator of Nashville's growing luxury real estate market.
The big picture: Despite inventory being short, there's been more activity in the luxury range — defined here as any listing over $2 million.
Get a free daily digest of the most important news in your backyard with Axios Nashville.
Support local journalism by becoming a member.