Detached houses on a large housing development on the western side of Nashville, Tennessee.
Georgeclerk | Istock | Getty Images
Nashville natives say they barely recognize the city’s skyline anymore, and they probably won’t anytime soon, as cranes still litter the picture.
The Nashville building boom is in full effect despite higher interest rates, higher home prices and a weaker national economy.
It began well before the pandemic-induced mass migration from big cities to smaller, more affordable ones. During the Great Recession after the 2008 financial crisis, workers were looking for an urban vibe but with cheaper housing. At the time, that was Nashville.
“We’ve had a big, big change coming out of 2008, 2009. We had this huge boom that kind of went through in Nashville that kind of phased in and maintained a steady momentum up to really the last three years,” said John Eldridge, CEO of E3 Construction Services, a homebuilding company that operates in the area.
Eldridge began building in Nashville in 2008, just as most national builders had gone underground, smarting from one of the worst housing crashes in history. In just a few years, the Nashville market suddenly took off due to an influx of buyers from the coasts looking for cheaper housing.
Single-family home construction permits jumped nearly 25% in 2015 from the year before, three times the growth rate nationally, according to John Burns Research and Consulting. Eldridge told CNBC he’s still just trying to keep up.
“We don’t currently have any houses that are built, completed, that are for sale, that haven’t been sold,” Eldridge said.
High-rises and high prices
Housing demand in Nashville pulled back some during the first years of the Covid-19 pandemic, but the city ranked in the top 10 for homebuyers looking to relocate to a new metro area in October, with people most commonly moving in from Los Angeles, according to a recent report from Redfin, a national real estate brokerage.
“It’s not just economics. It’s our climate here, it’s our four distinct seasons, it’s our culture here, it’s our location. I mean, we’re within 500 miles of about two-thirds of the population of the United States,” said Eldridge.
But growth has come with growing pains. After the gold rush, housing has become less and less affordable.
Special education teacher Madison Cartularo, a native New Yorker, moved to Nashville after graduating from college a few years ago.
“Even in the last two years, since I’ve moved here, rent is going up,” she said.
Cartularo was enticed by the strong public school system and the small city feel.
“I knew that after graduating that I wanted something bigger and something more livelier, especially being in my early 20s. I knew that I would want something with a lot of other younger people and a livelier nightlife scene, and I knew that Nashville would offer that to me,” she said.
On a teacher’s budget, she was also looking for something more affordable. That didn’t exactly happen.
After first living with a roommate, Cartularo then moved to a downtown studio apartment and is paying about $1,600 a month in rent.
“I think it’s a lot. I think it’s ridiculous. No one should have to pay that much money. That’s like half of my paycheck,” Cartularo said, adding she wouldn’t be able to afford to live in Nashville without a second job.
If renting is ridiculous, so too is homebuying.
While home prices nationally are up 47% from the start of the pandemic, Nashville prices are up 55%, according to ICE Mortgage Technology. It now takes 44% of the median household income in Nashville to afford the median-priced home, well above the long-time Nashville average of just 23%.
Of the nation’s top 50 housing markets, Nashville ranks 41st for affordability, according to ICE.
“What we’re seeing housing prices and rents go to is very foreign to what they would call affordable,” said Eldridge. “And we also are seeing a cost change, the difference in what it costs us to develop and build things as Nashville has grown, anything from just our land acquisitions, to the actual sticks and bricks, hasn’t done anything except for be a straight line up for the last decade.”
Business is booming
Higher interest rates have made homebuilding harder, and the pace has slowed because of it, but commercial construction downtown is still prolific.
“I think the reason Nashville has done so well recently and why it will continue to do well is it’s a place that employers and employees want to be,” said Janelle Gallagher, first vice president for CBRE in Nashville.
Gallagher has been working in Nashville’s commercial real estate sector since moving to the city over a decade ago. In just the past four years, she has watched the office supply jump 15% despite a slow return to offices nationwide.
“People are coming to the office here. We’re seeing a lot of corporations make big announcements that ‘Our staff needs to come back to office,'” she said.
It’s not just back to office, it’s the influx of new tenant types.
“We’ve got music and entertainment, and that’s certainly part of our history and kind of our culture, but we’re seeing a lot of professional services: law firms, banks, tech, automotive, health care,” Gallagher added.
That has developers putting in more apartment towers downtown as well as retail stores and restaurants to serve them all.
Nashville’s economy may be booming but some say the growth came too quickly, and the city is now paying a price.
“I think for most of us that have been longtime Nashvillians, the congestion and traffic count is infinitely more than it’s ever been,” said Eldridge.
Developers like Eldridge are adding water and sewer lines, but the city is lagging on transportation. Last April, Tennessee Gov. Bill Lee signed the Transportation Modernization Act, a $3.3 billion investment to accommodate the state’s record growth.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
