Multi-family permits for Tennessee rose 31 percent from the previous quarter and were up 65 percent over the third quarter of 2016. Single-family permits and total permits rose by 5 percent and 8 percent, respectively.
Housing prices were up 7.9 percent statewide, 1.6 percentage points higher than for the nation, according to BERC director Murat Arik, who added the state’s strong economy and low unemployment bolster the housing market.
Areas showing the most growth in housing prices were the Nashville Metropolitan Statistical Area at 10.4 percent, the Chattanooga MSA at 7.7 percent and the Memphis MSA at 7.3 percent. Other areas worth noting are the Jackson and Clarksville MSAs, “both reporting much stronger growth than in the previous quarter,” Arik said.
Other report highlights included:
• foreclosure rates were the lowest in 17 years.
• for the first time in many years, inventories were up slightly in all three geographies: Knoxville, Memphis and Nashville.
• the homeowner vacancy rate fell to 1 percent vacancy, the lowest rate in more than a decade.
• the rental vacancy rate continued its steep decline, dropping to 6.9 percent, the lowest quarterly rate in two years.
See the full current and previous reports with detailed breakdowns and summaries at mtsu.edu/berc/housing.php and clicking the appropriate links.
BERC’s report is funded by Tennessee Housing Development Agency. The quarterly report offers an overview of the state’s economy as it relates to the housing market and includes data on employment, housing construction, rental vacancy rates, real estate transactions and mortgages, home sales and prices, delinquencies and foreclosures.
The Business and Economic Research Center operates under the Jennings A. Jones College of Business at MTSU. For more information, visit mtsu.edu/berc.