NASHVILLE, Tenn. (WKRN) — If you're looking to buy a home in Nashville, you'll need a six-figure salary, according to the latest data. The household income required for a median-priced home in Nashville is 19% higher than last year.
“Rising interest rates are definitely a factor in affordability for many residents in the Middle Tennessee area,” explained Kevin Wilson, incoming president of Greater Nashville Realtors. “It's been hovering around the mid-7% range,” he added.
These interest rates and rising home prices are making it more difficult than ever to buy a home in Music City.
“Right now, the median home sale price in Nashville for October is higher, just over $472,000,” Wilson told News 2.
This combination puts home buying out of reach for many people in the Nashville area, especially first-time buyers.
“It's mainly due to market supply,” Wilson said. “It has become very difficult for buyers to purchase single-family homes in this market if incomes are not rising at the same rate as prices.”
According to Redfin Analysis, homebuyers need to earn more than $124,000 to afford a median-priced Nashville home, leaving many people out of the housing market. Redfin reports that the typical American household makes about $40,000 less than it takes to buy a median-priced home.
When it comes to single-family homes, you may have to sacrifice some square footage, but Wilson said affordability is still there. The key is finding inventory.
“Nashville remains a very hot city for people looking to move. We are still seeing significant migration to our city and the Middle Tennessee region, and as such the housing market and affordability in the Middle Tennessee region are “There will continue to be pressure on prices,” he explained.
