Nashville, TN, March 20, 2020 --(PR.com
)-- Occupancy rates in downtown rental units reached an impressive 94.7%. This provides a great climate for investors to invest in bringing new supply to the market. Supply of vacant rental units is very low, and demand for them continues to increase, so prices are on the rise.
As for business prospects, SmartAdvisor rated Nashville as the second-best place to start a new company. This is attributed to the population growth, net business creation, wage growth, and rate of entrepreneurship. This sets Nashville up for a variety of economic opportunities in the next few years.
The Realiste Fund has been investing in new residential, commercial, and industrial projects to support this economic and demographic expansion.
The city is also being recognized as a great place for young professionals between the ages of 25 and 34. This is primarily due to the fact that workforce development has taken center stage. According to 2018 data from the US Census Bureau, young workers are coming to Nashville for a chance at gaining a foothold in a company with which they can grow.
Despite the phenomenal state of the economy, Nashville is still behind most of its peer and aspirational cities when it comes to the total number of residents. Based on a 2018 Market Study by Noell Consulting Group, the Music City only beat out Tampa in overall city growth.
The rental market made up 69% of the downtown housing mix. Currently, there are eight upcoming development projects that plan to add 2,559 additional rental units by 2021. This is almost half of the existing 5,868 rental units already up and running throughout the city.
The short-term rental market has also seen some explosive growth this past year. The rise of Airbnb locations and lack of hotel rooms are the two overarching reasons for this shift. In total, there are currently nine rental properties that hold 782 permits collectively. This equals about 13% of all downtown rental units.
Condominiums have also seen a rise in popularity. There are currently only 2,345 rentable condo units that make up a small 28% of the total downtown housing market. Over the past five years, there have only been three condominium projects deliver 535 units downtown which is a fraction of the thousands of units needed to provide housing for Amazon, Alliance Bernstein and other new firms which are now locating their headquarters and new offices in Nashville.
“We’re in a tremendous condo shortage, and that’s why prices keep increasing,” says Stephen Epstein of the Realiste Fund, a locally based real estate fund investor.
As far as demographics go, about 42% of residents are currently single. Another 42% of the city's population is happily married. As for income, 83% of downtown households make over $60,000 a year, and 34% of them make more than $150,000 annually. A marginal 6% of residents make less than $40,000 per year.
Overall, downtown Nashville will continue to boom for the next few years. The demand for both rental units and purchasable properties should continue to expand as the population grows. By 2024, it is estimated that the total population of downtown Nashville will climb to 21,000.
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