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Experts say soaring home prices in Nashville caused by millennials

Posted at 8:47 AM, May 01, 2019
and last updated 2019-05-01 14:37:10-04

NASHVILLE, Tenn. (WTVF) — Nashville is on the rise with more and more people looking to buy homes in the Music City. One firm is sounding the alarm about a potential problem on the horizon that may be caused by millennials.

In Nashville there's a huge demand for homes, especially affordable ones. But the problem is the supply just isn't there.

According to a new study by Zillow, in the next decade more than 300,000 people in Nashville will hit the median age to buy a home, they're all members of the Millennial generation.

The study shows that’s ten percent more than the number of people who hit that age last decade, and it's predicted to further tighten the market on starter homes. The increase in demand means prices will continue to go up. Zillow says those prices have gone up 87 percent over the past five years, which equals to about 76 thousand dollars in value.

To add to the problem, the number of homes available has dropped by almost half. If you're still looking to buy a home in this market, here are some things to keep in mind: make sure to budget properly, avoid big life-changes like switching jobs, and find a good agent with a good track record.

Experts also say, no matter what, always have a backup plan just in case.