The city of Nashville is a busy city with a progressive economy and a handful of opportunities for employment that enticing for people in nearby cities to start a career in Music City. With this in mind, a lot of them certainly will look for a place to rent as they start finding jobs in the city, and that is through renting a house. It would be very helpful to know the current rent prices in Nashville, whether it is cheap or expensive about the current real estate market and home buying as well.
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To get started, check out the article written by Cherish Lombard, which mentions the rising rent prices in Nashville due to an increasing number of people moving into Nashville primarily for work opportunities. Read the article below to know more.
Rent prices continue to rise in Nashville
Image Source: The Balance SMB
Rent prices continue to rise in Nashville and as more people move here, they’re looking for a place to live, which is driving up rent.
The average apartment rent over the past 6 months in Nashville has increased by $54.
The newest data from Rent Jungle shows that as of December 2018, the average rent for an apartment in Nashville, TN is $1399. That’s a 2.72% increase from the same time last year when the average rent was $1361. It’s a 0.71% increase from last month when the average rent was $1389.
One-bedroom apartments in Nashville rent for $1257 a month on average. That’s 3.42% more than renters were paying last year. If you’re looking for a two-bedroom apartment, you’re going to pay about 4.95% more this year than you would have paid last year. Rents now average $1536.
Right now, you’ll find the highest rent prices in Green Hills, and some of the lowest in Salemtown, just west of the Cumberland near Germantown.
The rising number of people moving into Nashville has driven the home prices to increase over the past months. These people are typically moving into the city for job opportunities – and they need a place to live. As more and more people in need of these spaces as Nashville’s employment opportunities continue to rise regardless of real estate market conditions.
Another interesting data about the property rentals in Nashville is the fact that renting a place is cheaper than buying a home in Nashville. Specifically, three-bedroom apartment rentals cost cheaper than buying an averaged-priced single-family home. Check out this article written by Sandy Mazza published at Tennessean.
Surprise! It’s Cheaper to Rent than Buy a Home in Nashville Right Now
Image Source: Tennessean
In a twist of market dynamics, the cost of renting a three-bedroom apartment is currently cheaper than owning an average-priced single-family home in Nashville.This is also true for big cities across the country, including Los Angeles, Chicago and Houston, according to real-estate analysis firm ATTOM Data Solutions.
“This is just looking purely at if you wanted to purchase a home at this moment,” said Jennifer von Pohlmann, spokeswoman for ATTOM. “Of course, (with home ownership) you’ll also have home equity and will get that back at some point, hopefully. But, because of rising mortgage rates and appreciating home prices, it’s more feasible to rent than to buy.”
Wage increases lag behind housing costs
In less surprising news, neither home mortgages or apartment rents are affordable – or less than 30 percent of average wages.
Davidson County wages increased just 2.7 percent in 2018, according to the Bureau of Labor Statistics. The average weekly wage was $1,081 in 2018.
Meanwhile, home prices went up 9.7 percent and apartment rents jumped 9.9 percent.
Current average rents eat up 33.1 percent of paychecks while mortgage costs take 38.4 percent, according to the analysis. Read more here…
Actually this trend does not only occur in Nashville, but also for other big cities like Los Angeles, Chicago, and Houston. Also according to ATTOM, because of the ongoing rise in mortgage rates as well as increase in home prices, it is actually more feasible to rent than buying a property. This latest real estate market trend favors those who are moving in to Nashville and looking to rent for an apartment. Rent prices in some areas is actually less than 30% of the city’s average salary.
This favorable conditions in property rental segment drives competition among those who manages short-term as well as long term rentals. The biggest question is that how will it affect the Nashville market. Check out this article written by Erica Francis at wkrn.com. Check out the article below and learn how this wold affect Nashville in the next months.
Competition grows among short-term-rental brands, Will it impact our market here in Nashville?
Short-term-rentals have become a popular alternative to hotels, with Airbnb being the most popular– but there are alternatives, such as VRBO and HomeAway.
Recently, a major hotel chain, Marriott International, is checking into the short-term-rental market with their Homes and Villas program.
News 2 wondered… could this impact the Airbnbs already operating in Nashville?
The answer– is likely no, that’s according to Chris Muscatello who is well-versed in how Airbnb operates. In fact, he owns a property on 11th Avenue South that he lists on Airbnb.
“The great thing about this [short-term-rentals] opposed to hotels is the income being generated from out of town guests it’s going into local homeowners pockets which, is in turn, going into the local economy,” Muscatello said.
Marriott works with professional management companies for their inventory, hand curating a list of rentals offering more than 5,000 homes in 190 locations, including Nashville, some, near Muscatello’s property.
“I think it’s going to have a minimal impact,” Muscatello said.
One of the biggest differences between Airbnb and Homes and Villas is that 90% of renters on Homes and Villas are members of the hotel’s travel program, Marriot Bonvoy, meaning they can earn points when renting through Homes and Villas. Read more here…
Property rental owners benefited from the increasing demand of rental spaces due to people moving in to Nashville as it offers more job opportunities. Plus the latest trend showing that it is much cheaper to rent a house than to purchase one, Nashville right now clearly favors the landlords. As long as Nashville provides employment opportunities as well as a progressive economy in the coming months which drives more renters to the city, landlords as well as investing in property rentals can give good return on investment.
If you want to sell your house in Nashville, raise a capital and start your own property rental business in times where the demand is high, Dependable Homebuyers can help you sell your house fast and get the cash you needed in buying a property. To get started, visit https://www.dependablehomebuyers.com/tennessee/ and we look forward to hearing from you.
Dependable Homebuyers
1402 Belt St, Baltimore, MD 21230
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