According to Colliers and the Bureau of Labor Statistics, job growth in the Nashville region was 6.7% in May 2022, reflecting 70,200 jobs added during a 12-month period. The metro job growth figure was above the national number of 4.5%. RealPage forecasts Nashville’s job growth to be 1.8% in 2023, with 20,038 jobs added. Job growth is expected to average 0.7% from 2024 to 2026, with an average of 7,771 jobs added each year. On the supply side, permits for 10,511 multifamily units were issued in the 12 months ending in May 2022, down -3,481 units from the prior year’s sum. In terms of total residential housing, 27,906 units were permitted in the 12 months ending May 2022, a decrease of -2,694 units from the prior year’s total.
As of July 18, 2022, RealPage has identified 9,302 apartment units scheduled for delivery in 2022, of which, 3,209 have been delivered. As a comparison, there were 6,186 apartment units delivered in 2021. Properties delivered to the market in the last 12 months have achieved an average asking rent of $1,980 per unit, or $2.08 per square foot. Effective rent has averaged $1,884, or $1.97 per square foot, resulting in an average concession value of $184.69. As a comparison, existing properties in the market had an average asking rent of $1,623 per unit ($1.71 per square foot) and an average effective rent of $1,619 per unit, or $1.70 per square foot, in 2Q22. Concessions for existing properties averaged $84.00.
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