I’m Thinking Granny Flat
The family compound may see a new light.
The family compound may see a new light.
According to WKRN television — “Nashville was recently named one of the country’s fastest-growing metropolitan areas, and with plans to construct nearly 30,000 new units in the city and rent rising 3% over the national average, it’s clear our rental market is changing rapidly.
Rental market is changing rapidly
“We’re seeing a ton of people from California, Connecticut, Chicago, that I think are coming here with the expectation that Nashville is going to be significantly more affordable, but the reality of the situation is that Nashville is continuing to grow,” said Rachel Attarian, COO of Nashville Apartment Locators.
With the city’s growth, rent prices are growing too. According to Apartment Insiders, the average market rental rate for a Nashville apartment is sitting around $1,500 — roughly $100 more than the quarter prior.
Paying anywhere from 3% to 30% more
In their story, WSMV television mentions that — “As the population grows in Nashville, many locals begin to notice Tuesday that the cost of living is rising.
Renters in Nashville say you’re paying anywhere from 3% to 30% more, that’s according to Greater Nashville Apartment Association Data.
If you rent almost anywhere in Nashville, chances are what you pay in rent has gone way up.
“Base rent went up $150 for me,” said Clark. “I’m talking to other friends down the hallway. Some people’s rent went up $200. I have a friend that said his went up $300,” she added.
“I pay about $1800 for 635 square feet, basically a one-bedroom,” said Adam Eyl, who has been in Nashville for six months and rents near the Germantown area.
“These are units that don’t even have like bedroom doors, but it’s like $16, $1,700,” C. Clark said. “it’s kind of wild,” she added.
“it’s a ridiculous price to be paying for normal working-class people,” Ely said.
And the reason for the hike in prices; is a classic supply and demand situation that’s according to Andy Borchers, Associate Dean At The College Of Business At Lipscomb University.
“Places like Nashville had many people coming into the area from various companies moving here. We have a lot of people looking for housing on the one hand. On the other hand, the supply side has been drastically affected. The time it takes to build an apartment. The cost to build the apartment has gone up dramatically,” said Professor Andy Borchers. “So demand is up, supply is down, and the consequence is rising prices,’ he added.
A granny flat
An added in-law apartment sometimes referred to as a granny flat, is an additional space in or close to your home that can be used to house a live-in nanny, an aging parent or another relative, or visiting guests. It can be built in your basement, a converted garage, or even as a separate structure from the main house. Unsurprisingly, a space like this can bring numerous benefits for your household. such as an extra storage space for you or extra income if you ever rent it out.
There are some things to consider before you have one built or buy a home with a granny flat.
Regulations — YOU MUST check with your homeowners’ association (HOA) and/or city zoning regulations first if you have plans of building a mother-in-law apartment. The regulations and HOA rules may not allow a separate structure to be built at your home, so you might have to tear it down.
Utility Costs — Consider the utility costs when building your granny flat or buying a home that has one. The additional structure will add to your electricity, water, heating and cooling cost.
Maintenance — Of course, you’ll also have to pay to maintain the structure. Having a mother-in-law apartment is additional work. If you don’t have the time to maintain it, then it’s best to not have one at all.
Insurance — Insurance costs are another thing to consider when having a mother-in-law apartment. Not all home insurance policies will agree to cover an accessory dwelling unit, putting the structure at risk. If you plan on renting it out to tenants, you may need extra insurance to properly protect your home.
There are also many other selections to be made. In future stories, we will look them…
Connected or freestanding granny flats.
Modular or site-built granny flats.
Granny flats with or without a kitchen
Look at your lot size, parking facility, and ease of quiet entry.
You may spend $50,000 to $150,000 on one currently.
We will explore more pros and cons.
Extenuating circumstances
A granny flat could be used for rental or home office then caregiver residence ultimately. Check with your tax preparer about using an equity loan and check the deductibility of new expenses involved.
The average sale price of a home in Nashville was $440K, up 23.6% since last year. The average sale price per square foot in Nashville is $272, up 30.1% since last year. — Nashville Realtors
The average rent for an apartment in Nashville is $1,694 — Rent Cafe Nashville
With needed rental homes, with the aging of the population, and with working from home trends, I am definitely drawn to the possibilities here.
This is definitely an option to explore.
Thank you for your time.
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