Read the latest Yardi Matrix Nashville Multifamily Market Report.
Healthy Absorption Meets Peak Supply
The start of leasing season reinvigorated Nashville’s multifamily market, notes the latest Nashville multifamily market report. Following eight months of declines, the average rent inched up 0.1% on a trailing three-month basis through April, to $1,631. Year-over-year, rents in the metro decreased 1.9%, while the U.S. rate rose 0.7%, to $1,725, according to the national multifamily market report. Last year’s deliveries set a new decade-high and put pressure on occupancy and rents. The occupancy rate in stabilized properties was down 80 basis points, to 94.0%, year-over-year in March. Still, at 4.2%, Nashville marked the highest absorption rate as a percentage of stock over the 12 months through the first quarter.
In the 12 months ending in February, Nashville employment expanded by 1.3%, or 5,400 net jobs, slightly lagging the 1.5% U.S. average. Yet the jobless rate was 2.4% in March, reflecting a very tight labor market and outperforming both the state (3.2%) and the country (3.8%). Three sectors contracted in the year ending in March: professional and business services (-5,400), financial activities (-4,400) and information (-2,000). Despite tepid job growth, Nashville is still expanding, with various billion-dollar projects underway.
In 2024 through April, deliveries totaled 1,429 units, all of which were upscale assets. An additional 28,557 units were underway, but new starts are decelerating. Meanwhile, investors traded $187 million in multifamily assets, for a price per unit that fell 36.8% year-to-date, to $146,719.
Read the full Yardi Matrix Nashville Multifamily Market Report: June 2024
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