Nashville new-home closings grew 30% since this time last year, according to a report by Metrostudy. (Metrostudy is a division of Hanley Wood, the company that publishes PROSALES.) The region saw 1,258 closings in the first quarter of 2014, up 30% from 970 units in the first quarter of 2013. The report adds that, on an annual basis, new-home closings are up 27% at 5,486 units sold as of the end of the first quarter.
And the growth isn’t stopping there, says Eugene James, Metrostudy's regional director. “There is no doubt that the tremendous job growth in Nashville, averaging over 3.2% for the past three years, is helping to push demand for housing even higher." The upswing, James says, is primarily driven by rising consumer confidence and national job growth.
According to Metrostudy field research, builders are responding with more boots on the ground; in the first quarter of 2014, builders began construction on 1,477 new units, a 36% increase from this time last year.
Are Nashville builders jumping the gun? Not likely, James says. According to the research, supply for new houses ready for occupancy has declined to 1.8 months, down from the region's norm of between 2 and 2.5 months.
“This means buyers may find it
challenging to find a home ready for immediate occupancy,” James says. “It
appears that new-home inventory will remain rather tight throughout the summer.