The real estate boom in Nashville affects all of its residents. For proponents of affordable housing like Habitat for Humanity, the rise in real estate prices can be crippling. On the other hand, for those who own property in the city, the real estate boom is a welcome development.
No property bank
The residential property market in Nashville shows it all: inventory housing the city can last for 1.2 months. The usual figure varies between a year to 18 months. The city, in contrast, has only one month and change for inventory. It is evident that almost every house is occupied and sold.
The rise in real estate prices have affected first time buyers the most. According to Danny Herron, the Chief Executive Officer of Nashville's Habitat for Humanity, the negative side of such increase in property prices is that many people are left behind. There is a great need for affordable housing. Not many economically priced places are floating around in the real estate market. For buyers, the going is to be tougher, with an uptick of payments, a rise in the property taxes- but salary or income has not proportionately increased.
Public transport lack
To combat such trends, and to sidestep the competitiveness of the real estate market, the Habitat for Humanity organization has engaged in buying up land five years in advance. The expense of developing that land is almost doubled. Herron told that the lot could be priced at $35,000 five years before. The present price of the same land has now risen to $65,000. The organization is thus compelled to look in the outer fringes of this metropolis. The problem of staying outside involves driving to downtown as other public resources are not available on demand. The applicant count is increasing to. In 2013, the number of applicants were 800. It has now risen to 1,100.
Many first time buyers are willing to wait a long time for buying a house. It helps that builders have started to build houses and there is an inkling that many people are actually going to get homes.
There are a number of Nashville residents who do not get into such programs. For them, organizations like Metro Development and Housing tries to find subsidized homes or rentals. For these people, as per Herron, they can afford to buy their new home by downsizing.