Renting vs. Buying in Nashville
NASHVILLE, Tenn. (WZTV) —
To rent or to buy -- that's a tough question as Nashville's "it city" status drives an estimated 65 people to Music City each day.
The continued boom means prices for both homes and apartments are rising, with builders working to keep up with demand.
Along Music Row Circle, new apartments are starting out at more than $1,600 a month. The average rental price in Nashville is now $1,050 a month.
Making some say -- it now makes more sense to buy a home.
After years of paying rent, Travers Xanthos is now paying a mortgage.
"From now on, I'm not going to be throwing my money away," Xanthos said.
This millennial bought a house in Nashville's Nations neighborhood after securing a sweet deal.
"It's three bedroom two and a half bath masters on the first floor, I paid $380,00 for it, but I only had to put three percent down," Xanthos said.
With mortgage rates continuing to drop while rental prices keep rising, it brings up the question is better to buy or rent?
The answer, well that depends on who you ask.
"If you're on the fence about thinking about buying a home, now is the time to buy, because if not we may further increases," Denise Creswell said.
The Nashville Association of Realtors says buying is a better investment, and with a median home price of around $258,000 and mortgage rates going as low as around three percent, now is the time to do it.
But with more apartment buildings going up, some others say renting gives you better flexibility.
"Someone else has all the headaches on cutting the grass, the tax increase, doing the maintenance buying, you're making a much longer commitment and you're also taking the risk of homeownership," Woody McLaughlin said.
For Xanthos, that's a risk he's willing to take.
"I really think it's throwing your money away, especially if you're going to be in an apartment downtown, you're going to be paying $2,000 a month for a one bedroom a two grand mortgage would get a three bedroom house in the Nations," Xanthos said.
And while all these new apartments being built may exceed the demand for them, it doesn't mean rental prices will be coming down.