Nashville’s home listings are outpacing closings, new report shows

There are a lot of homes on the market around Nashville — but fewer people buying them. 

That’s according to a new report from Middle Tennessee State University. Researchers say the housing market has remained “balanced,” as employment rates, construction permits and home prices have largely held steady.  

But some things have changed. 

In Nashville, the housing inventory has exploded — it’s 37% higher than last year. Memphis and Knoxville, too, show an increase in listings. 

Closings just can’t keep up. Memphis has seen a decrease in closings from last year. Nashville and Knoxville have seen increases in the number of closings, but they don’t begin to close the gap of what’s on the market: in Nashville, there are nearly 13,000 homes on the market, but fewer than 3,000 have been sold this year. 

Screenshot MTSU Jones College of Business

The report shows that the number of single-family home closings sits significantly below the number of single-family homes on the market.

One reason for that may be that home prices have risen, albeit not as quickly in Tennessee as the rest of the country. There’s an average increase of 3.71% from last year, while the national increase sits at 4.61%. 

Home prices do vary by area, of course. Nashville’s increase is roughly on par with the state average. But Memphis and Clarksville increases are among some of the lowest in the state, while the highest price increases are out east, in Sullivan County. The statistical area that includes the cities of Bristol and Kingsport saw a home price increase of more than 10% from last year. 

Looking ahead to future construction, the report shows single family homes are trending downward. Permits for single-family house have fallen in Tennessee and nationwide. However, permits for multifamily homes have snowballed by 62%, compared to last year. That means more apartments or townhomes will soon be constructed.