Real Deal Column

As Nashville continues to experience unprecedented growth, our city finds itself at a critical crossroads. Our infrastructure is straining under the weight of this rapid expansion, with congestion worsening daily and the costs of inaction mounting. If we fail to act now, it may soon be too late—and too expensive—to make the meaningful changes Nashville desperately needs.

For many Americans, owning a home is more than just having a place to live—it's a cornerstone of building generational wealth. Each mortgage payment made chips away at the loan and builds equity, turning a home into one of the most valuable assets a person can own.

Yesterday, the practice changes following the National Association of Realtors Settlement Agreement that would resolve claims brought on behalf of home sellers related to broker commissions was implemented across the country.

Last week, the Federal Reserve met, and Chair Jerome Powell set the stage for the central bank’s first rate cut in four years, citing greater progress toward lower inflation while keeping the key interest rate unchanged.

Tennessee is experiencing a significant demographic shift, marked by a rapid increase in its senior population. Between 2020 and 2023, the 65-and-up demographic in Nashville alone grew by 13%, outpacing all other age groups. This trend is not isolated to Nashville; it reflects a broader statewide pattern. There has been a noticeable increase in the proportion of seniors moving to Tennessee from other states. In 2021, 1.8% of the Volunteer state seniors had relocated from another state, up from 1.5% in 2019.

$32,756.23 billion—that’s the staggering total value of America's collective home equity, according to recent data from the Federal Reserve Bank of St. Louis. This figure marks a record high, having doubled since early 2017 and quadrupled since early 2012. For homeowners in Nashville and beyond, this growth highlights the immense value of owning a home and its role in building generational wealth.

As we move through 2024, the Greater Nashville real estate market witnessed a notable shift last month. Closings in June decreased by 13 percent compared to the same period last year. This decline in home closings across various categories underscores the potential opportunity – an almost forgotten market landscape where buyers have negotiating power.

Investing in housing is more than just buying a place to live—it's a cornerstone of the American economy. Each home sale generates two jobs, and the real estate sector alone makes up approximately 18% of the entire nations economy, according to data from the National Association of Realtors. This ripple effect of home sales extends beyond property lines, influencing numerous facets of American life.