Will Nashville overcome the huge shortage of lots?
Edsel Charles knows the market better than anyone in Nashville. He is the founder and Chairman of the Board of the Market Graphics Research Group, a world leader in real estate market research.
Edsel studies market across the United States for builders, banks and other corporations. So, we are lucky to have him here in Nashville. In a recent presentation, he shared the news about the need for residential lots in Middle Tennessee over the next five years.
Here a a few of his findings:
- The current inventory of lots in Middle Tennessee is 14,349
- They expect 96,753 lots will need to be developed by 2022 to meet projected demand
- More than 40% of lots will be needed in Davidson and Williamson Counties
- Rutherford, Sumner and Wilson Counties round out the top five in demand
In order to meet demand we would need to develop 80,000 lots over the next five years. And that is a tall order because in 2016, only 12,843 building permits were pulled across all of middle Tennessee.
That's asking for a 50% increase in production and then hold it for five straight years. It’s possible, but not likely that we will keep up with the projected demand.
And you know what happens when demand exceeds supply, higher prices.
If you have your eye on new construction, I would be thinking sooner than later. Not only are prices going up, but interest rates are on the rise too. When these two combine, it wreaks havoc on your purchasing power.
One last thought.
Have you seen our Nashville Guide to New Construction? Hit reply and I’ll send you a copy.
The Daily Deal in Nashville is a beautiful home in Hendersonville on 2+ acres with your own pond for less than $320,000.