Nashville has faced several challenges over the past year. But it hasn’t stopped the multifamily market from expanding.
The Music City’s rent expansion has kept up with national growth, up 0.5% on a trailing three-month basis through April. Nashville’s rates averaged $1,311, which is 7.5% less than the national average of $1,417. 1
As of April, 16,452 units for multifamily development were under construction, including 11.5% of the existing inventory. Developers continue to target Lifestyle renters, who have wealth sufficient to own but have chosen to rent. This has resulted in comprising close to 85% of units underway. 1
Within the first 4 months of 2021, Nashville developers have completed 801 units, 0.6% of total stock. Deliveries have declined from 2018’s cycle peak of 8,114 units, but 4,365 units were completed last year. Not to mention, 10,000 units are scheduled for completion by year-end. 1
Downtown-North Nashville has experienced the most construction activity with 4,223 units underway since April. Only 381 units were delivered in the submarket within the first 4 months of 2021. But, between 2018-2020, developers have added over 4,100 units. 1
Music City Multifamily Trends:
- Nashville rents increased 0.5%
- Rates averaged $1,311, 7.5% below national average
- The West End/ Green Hills submarket had the fastest rent growth, up 13% year-over-year through April
- Nashville’s rent growth is expected to increase. It is anticipated rents to expand 3.0% in 2021
- Endeavor Real Estate Group’s 570-unit Gulch Union was the largest multifamily project building
- The largest delivery through April was Kenect’s 420-unit in Midtown/Music Row.