The Greater Nashville Realtors released its March 2026 housing statistics this week, and the condo numbers stood out sharply from the rest of the report. There were 2,847 active condo listings across the Nashville metropolitan area at the end of March, the highest level since January 2019 and up 38 percent from March 2025. Months of supply, which measures how long it would take to sell the current inventory at the current pace of sales, reached 5.8 months for condos, firmly in what economists call buyer's market territory. Single family home inventory remained tighter at 2.1 months of supply.
The median condo price in the Nashville metro dropped to 352,000 dollars in March, down from 378,000 in March 2025, a decline of roughly 7 percent. Downtown and Midtown condos fell even more sharply, with the median sale price in the downtown core dropping to 475,000 from 542,000 a year earlier. Some specific buildings have seen individual units resell for 15 to 20 percent below their 2022 purchase prices, and a handful of investor owned units have sold at losses for the first time in nearly a decade.
The supply surge has several overlapping causes. Roughly 1,400 new condo units delivered across the metro in the second half of 2025 as towers that broke ground during the 2021 and 2022 boom finally completed construction. Developers who pre sold units during the boom are now competing with original buyers trying to flip, and with short term rental owners exiting the market as Metro Nashville's STR regulations continue to tighten. The Nashville STR ordinance amended last fall cut the number of permitted non owner occupied short term rentals in several downtown zones, pushing some investor owners to sell.
Buyer demand has softened at the same time. Mortgage rates have held around 6.5 percent for six months, which prices many first time buyers out of the condo market entirely once HOA fees and property taxes are factored in. HOA fees in some of the newer downtown buildings have crept past 1,000 dollars a month, reflecting the real costs of maintaining amenity heavy towers with pools, gyms, concierge service and valet parking. Insurance premiums have also risen sharply, with several downtown condo associations reporting premium increases of 40 percent or more at their 2025 renewals.
Real estate agents working the condo market describe a buyer pool that is mostly cash or close to it. Downsizing retirees from higher cost coastal markets continue to arrive in Nashville looking for walkable downtown living, and those buyers are generally not financing. Young professionals with strong incomes are mostly choosing to rent in the same buildings where inventory has ballooned, because the math of buying has gotten worse. A typical 500,000 dollar downtown condo with 20 percent down now carries a monthly cost of roughly 3,900 dollars including mortgage, taxes, HOA and insurance, while comparable rentals in the same buildings are listing for 2,800 to 3,200 dollars.
The downtown inventory story is concentrated in a handful of specific buildings. Alcove, which delivered in late 2024, still has 68 active listings among its 350 units. 505, the 45 story tower that opened in 2018, has 42 active listings, many of them short term rental owners trying to exit. Peabody Union near the stadium has 31 active listings out of 235 units. Twelve South and East Nashville condo supply has remained tighter because those neighborhoods have less concentrated new construction, and prices there have held up better.
Developers with towers still in the pipeline are quietly reconsidering their plans. A 38 story mixed use tower at Seventh Avenue North that had planned to deliver 280 condos in late 2027 has filed an amendment with Metro Planning to convert roughly half of those units to apartments. A smaller project in Wedgewood Houston has been paused entirely. Lenders who financed condo construction at 2021 and 2022 terms are increasingly working with developers on extensions and workouts rather than forcing defaults, but several industry sources say they expect at least two or three condo related workout deals to become public in the second half of 2026.
For buyers who have been priced out of Nashville for years, the math is finally starting to bend. A buyer with 100,000 dollars to put down and a strong income can now find a well located two bedroom condo in the downtown core for well under 500,000. Whether prices continue to fall from here depends largely on how fast existing inventory clears and whether the spring buying season brings any real pickup in demand.