Jack Gaughan, President, Greater Nashville Realtors
In an interview with Invest:, Jack Gaughan, president of Greater Nashville Realtors, discussed the region’s shifting housing dynamics, saying that collaboration is the key to success. “We have transitioned from the intense seller’s market that characterized the COVID-19 period into a more balanced, or even buyer-favorable, market,” Gaughan said.
Over the past year what changes have had the greatest impact on the Nashville housing market, and how have those shaped your priorities?
The most significant change has been a distinct market shift. We have transitioned from the intense seller’s market that characterized the COVID-19 period into a more balanced, or even buyer-favorable, market. This evolution is largely attributable to interest rates rising to a level substantially higher than they were during the pandemic years. Consequently, buyers have been compelled to become more selective and deliberate in their purchasing decisions, with a heightened focus on affordability.
Affordability remains the chief and most pressing issue this association is confronting. Our newly developed strategic plan, which we formulated on a three-year cycle, places affordable housing at the forefront. This is paramount because regardless of one’s economic standing, whether they are a millionaire or a first-time homebuyer, for us affordability is a crucial factor in sustaining Nashville’s growth. Our development must be inclusive, encompassing all people buying in all types of markets. If we become too focused on one specific type of buyer or individual, we risk potential residents choosing other cities. We must take the time to plan meticulously, ensuring Nashville is a welcoming community for everyone, irrespective of socioeconomic background.
How would you describe the overall health of the Middle Tennessee housing market compared to national trends?
Compared to national trends, the Middle Tennessee market continues to demonstrate impressive resilience. Sellers are still achieving strong sales prices, and underlying demand remains robust. While our inventory is rising at a slightly higher rate and our days on market are somewhat elevated compared to the national average, these differences are minimal. In fact, these indicators are not negative; they are characteristic of a balanced market where both sellers and buyers can participate in a healthy and equitable manner.
We also continue to face a critical inventory shortage. Recent studies from organizations like the Urban Land Institute indicate we are months, even years, short of the necessary inventory to meet the demand generated by the volume of people relocating here. The central challenge, therefore, is addressing the affordability crisis while simultaneously expanding inventory to accommodate everyone. We anticipate adjustments to zoning laws, with discussions at the city council level, and encouraging signs from the federal market, potentially including lower interest rates, which would help buyers secure a manageable monthly payment. We are focused on maintaining Nashville’s competitiveness, which is contingent upon having a place for everyone to live. Failure to meet this demand would be our greatest struggle moving forward. Companies are relocating here precisely for our affordability and quality of life, and we must preserve these attributes.
How are these prevailing trends shaping the strategies of your organization in its work with both buyers and sellers?
From an organizational standpoint, our strategy is fundamentally centered on ensuring our members are the most qualified professionals advising clients. This requires a deep commitment to professionalism, continuous education, and equipping our realtors with a comprehensive toolkit to serve as the primary source of knowledge for the buying and selling public. The general public often receives information through brief news snippets or word-of-mouth, which can be incomplete or misleading. Our association must act as a conduit for factual and current information, empowering consumers to understand where opportunities and possibilities exist, whether they are looking to buy or to sell. We want them to rely on a trusted professional, not a five-second online video.
The only way to achieve this is through intentional focus on our membership, ensuring they are fully equipped, adhere to our strict ethical guidelines, and uphold the high standards of professionalism expected of all realtors. They must be educated on both current national trends and our specific local market dynamics and laws. Advocacy is a huge component of this, as it ensures our members are operating with the most current information and within a framework that supports their clients’ best interests. Our goal is to provide a comprehensive service that extends beyond simply opening doors, as we aim to guide clients through the entire process and remain a resource for them afterward, whether they have questions about their equity or industry news.
What specific policy issues are top of mind for the organization regarding advocacy?
Advocacy is the chief concern to which we devote the most significant portion of our time and resources. From the national down to the state and local levels, our mission is to ensure that any legislation impacting property and homeowner rights ultimately benefits the broader public. Affordability is a paramount issue at the state level, involving discussions around taxes, industry-specific regulations, and the broader impacts of inflation.
At the local level, zoning reform is a huge priority. We are not advocating for blanket zoning codes, but rather for a simplification of Nashville’s current zoning, which is notoriously complicated and convoluted due to years of incremental additions. A streamlined code would allow for more thoughtful density growth in certain areas of Nashville that are well-suited for it. It is important to recognize that not every neighborhood must look the same. A critical part of this process is ensuring neighborhoods have a voice and are educated on the benefits of such changes. Often, the term “change” immediately evokes a negative reaction. We want to demonstrate how increasing density or improving transportation accessibility in certain areas can enhance quality of life and bolster the equity homeowners have in their properties. Our advocacy is focused on creating positive outcomes for the entire community.
What opportunities do you see for the organization to expand its influence and strengthen the real estate profession across the region?
Community-building is going to be of continued importance, and that starts with making sure that we are the source of information as it relates to real estate inside the Middle Tennessee area. We want to be the No. 1 source of information because we have the people, the staff, and the membership that actually are involved every single day in every aspect of our industry. We can bring together all the other aspects of our community to address the issues together, whether it be affordable housing or transit. We want to make sure that we are connecting the mortgage bankers with the building associations, connecting our people with affordable housing options, and making sure that we have opportunities for people to help with zoning laws. We want to make sure that we are a conduit of all that type of collaboration.
What changes do you expect the industry to face in the coming years?
Going into next year, there are going to be some changes. There is no difference between a licensed real estate agent and a realtor, but I want to stress how important it is for the public to understand why being a realtor is crucial to the success and health of our market. There is a very low bar when it comes to the actual entrance into buying and selling in real estate. What really sets us apart is the education, the code of ethics, and the professionalism that you are required to uphold when you are a realtor member. A member of the public should feel trust that we are a member of this association rather than just someone who has their license and does not have to follow those same types of structures and ethical guidelines. As we look forward, I hope that we continue to be the most trustworthy source and service provider for our growing city. I hope that our city continues to grow smartly. Real estate plays one of the main, if not the main, roles in the success of a city.
