Renting vs Buying in Nashville

I received a tweet from someone looking for a new home. It went something like “Can you help me & Ashley find a new place?”

I automatically assumed my twitter friend would be looking for a rental, but to my surprise he told me he and his wife wanted to save money and buy a home. How refreshing! Folks who understood that mortgage rates and lower home prices really does make this the perfect time to buy.

In the Nashville rental market, rates are going up and availability is going down. The average rent paid by Nashville-area residents is up almost 6% versus last year, ahead of the national average by almost a full point.

For example, a Studio Apartment (442 sq ft) at Velocity in the Gulch starts at $1214/month and a 2 BR Apartment will set you back $1669/month.  To compare, Principal & Interest on a $195,000 loan at 4.5% interest is only about $988 per month. If that piques your interest, check out this mortgage calculator to check payments on any loan amount.

My twitter friends were renting a suburban condo for around $900 per month. It was a nice enough place, but not close to where they worked or went to school and the cab ride from downtown Nashville was a pretty hefty fare.

They ended up with a great little one bedroom condo in Sylvan Park where they can easily walk to great local hangouts like The Local Taco, Park Café and Star Bagel. Plus, the Richland Creek Greenway and McCabe Golf Course are literally in their backyard. All this for about the same amount of money they were spending on rent.