The Pandemic and Nashville Real Estate
The Pandemic and Nashville Real Estate
The COVID-19 pandemic changed the way we live, work, and interact with each other, and the world of real-estate was no exception. The pandemic brought fourth significant changes for both buyers and sellers in the Nashville market. In this blog post, we will examine a few of the ways the pandemic has changed Nashville real-estate.
Remote work, & increased demand for suburban housing
Two of the most significant changes to the Nashville real-estate market go together hand in hand. The new availability of remote work for many companies meant that many people could now sell their homes and move to other less expensive areas of the county. In other words, the market for suburban homes outside of costly city centers, saw a massive increase in demand. With so much of the country spending more time at home, there was also a shift towards more spacious homes, home offices, and outdoor spaces. Agents took note of these shifts in demand, and began marketing more specifically towards features that might attract buyers nationwide.
Virtual home tours
Virtual home tours became very popular during the pandemic as a way for buyers to avoid unnecessary in-person interaction with agents. Potential buyers from out of state also increased demand for more detailed breakdowns of homes online through: virtual home tours, detailed pictures, videos, and even 3-dimensional image modeling of the home. This shift is likely to stay and even expand as a new industry expectation among buyers.
Delayed construction and supply chain issues
The pandemic stifled the flow of the supply chain for all areas of business. This led to a shortage of available new homes on the market. The shortage intensified competition for available property among buyers, driving prices even higher. The supply chain is still under duress today, and will likely continue to be for some time, although much of the market has recovered or adjusted to the new reality of the supply chain.
Impact on the rental market
The rental market has also been impacted. The decline in tourism and the rise in remote work led to a decrease in demand for short-term rentals, such as Airbnb. This has led to some property owners converting their short-term rentals into long-term rentals, which has increased the supply of rental units in Nashville. However, the pandemic has also led to an increase in renter defaults, as some renters have been unable to pay rent due to job loss or financial hardship. This has led to some landlords struggling to maintain their properties and pay their mortgages.
The pandemic changed the landscape of the real-estate market in Nashville, and the market will continue to adapt as new changes and developments come, but as we have seen since 2020, you never know what’s in store for the future, it will be interesting to see what happens as the city and it’s surrounding communities continues to evolve.