Murfreesboro Building Activity in 2023 Hits High of $1B in Valuation

Murfreesboro’s single-family permits and new commercial development in 2023 reveal expanding growth and higher valuation due in part to rising construction costs. Overall building activity in 2023 hit $1 billion in permit valuation, a new high for Murfreesboro, which recorded a 3-year permit valuation of $2.7 billion since January 2021.

New commercial permits in Murfreesboro rose in 2023 to 69 permits from the 62 permits issued in 2022. New commercial permits had previously risen from 44 in 2018 to 51 in 2021, a growing trend. Larger commercial developments include $65 million in current apartment construction at Clari Park with a future mix of single-family detached residential, and townhomes under construction off Medical Center Parkway. A new Firebirds Wood Fired Grill as part of the development opened in October. Planned or permitted projects in Clari Park include Main Event, Whataburger, PF Chang’s, Raising Cane’s, Drake’s, and Towneplace Suites.

“Ascension Saint Thomas also contributed to the high level of activity with the addition of a parking garage and expansion of treatment and emergency room areas,” stated Development Services Executive Director Greg McKnight. “The Medical Center Parkway corridor continues to be an active construction area in Murfreesboro.”

Permitting of residential units in Murfreesboro expanded to a total of 1,320 permits in 2023, including 730 single-family detached units, 284 single-family attached units, and 306 apartment units.

“The overall number of single-family units permitted decreased by approximately 11 percent in 2023, while the dollar value for construction of those units rose to $334 million,” added McKnight.

• Single-Family Detached- 2023: 730, 2020: 1,181, 2018: 992
• Single-Family Attached- 2023: 284, 2020: 721, 2018: 507
• Apartment Units- 2023: 306, 2020: 56, 2018: 1,251

Multi-family units permitted have declined in recent years after reaching a high in 2018 of 1,251 units.

Ole South Properties lead the market with 128 single-family/townhome permits followed by Crescent Homes with 85 permits and Meritage Homes with 83. By subdivision, Shelton Square on the west side of Murfreesboro and Westwind experienced the most building activity.

New home sales across the nation decreased 12.2 percent in November 2023 to a seasonally adjusted annual rate of 590,000 units compared to 672,000 units in October 2023. Meantime, National median home prices continued to rise in 2023 to $434,700. A tight supply of existing homes for sale and higher interest rates have pushed home prices higher and continues to make affordability an issue, especially for first-time homebuyers.

The cost of housing, while economical in Murfreesboro compared to many parts of Middle Tennessee and the nation, has been getting more expensive due to lot shortages and building and material costs. Housing affordability remains an issue in 2024, but a report from the National Association of Realtors ranked the Nashville metro area as one of the markets with the most pent-up demand.

*In 2006, at the height of Murfreesboro’s construction boom, lots available peaked at 1,799.

For additional information visit, City-of-Murfreesboro-Building-Report-by-Month (murfreesborotn.gov)