Nashville may be the country music capital, but its housing fundamentals rock:
- Resale sales have risen 16% over the past twelve months.
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- Home prices are up nearly 9% over the same period.
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- Job growth has averaged 3.0% in the past year, thanks to the booming health care and entertainment industries.
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Several builders have expanded to Nashville in the last four years, and more are on the way.
We hosted a dinner last week for 17 investors, developers, and builders—several of whom were division heads—and discussed the following:
Land supply varies widely by submarket.
- New home prices are 36% higher than resale homes.
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- Entitlements are more challenging than most other areas in the region, with several cities demanding larger lots and lower densities.
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- Several new master-planned communities will be opening in the next 12 to 18 months and will likely be on our top 50 master-planned community list by 2016.
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- Cottage developments have become increasingly popular across all demographics.
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- The 55+ crowd is moving here in droves and interested in age-restricted communities.
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- The Franklin/Brentwood/Cool Springs employment center (south of Nashville) actually has more Class A office space than downtown Nashville.
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- With demand for new homes far outpacing the supply, strong demographic drivers, and great affordability compared to other top cities, Nashville is poised to be a player on the national housing scene for years to come.
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