Metro Reports Multifamily Market Real Estate Trends

Nashville Multifamily Market Report – January 2023

Nashville Multifamily Market Report January 2023
Photo by Vito Palmisano/

Nashville’s economic diversification has transformed the area into a prosperous and vibrant center, attracting businesses and residents alike. In addition, the city boasts a lower cost of living compared to many metros, with an average asking rent of $1,655, trailing the $1,719 U.S. average. Although demand softened, occupancy in October was still solid, at 95.5%.

Nashville unemployment stood at 2.7% in October, according to the Bureau of Labor Statistics, outperforming nearby Chattanooga (3.3%) and Knoxville (3.1%), as well as Tennessee (3.5%) and the U.S. (3.7%). Employment expanded 6.1%, or 64,100 jobs, in the 12 months ending in September, well above the 4.2% U.S. rate. The information sector remained flat during the period, but no sector lost jobs. Leisure and hospitality led gains (14,300 jobs), followed by Nashville’s three largest sectors, for a combined 33,900 positions. The metro’s strong and diversified economy has good prospects for withstanding the next recession.

Developers delivered 6,356 units in 2022 through November, the bulk of which were in upscale properties. Another 20,212 units were underway, but the number of construction starts declined. Meanwhile, investment activity remained elevated, with the transaction volume nearing $3.9 billion for the year, a new record. The price per unit posted a 17% year-over-year increase, to $238,757, while the U.S. average rose to $215,443.

Read the full Matrix Multifamily Nashville Report-January 2023

About the author

Anca Gagiuc

Anca Gagiuc brings more than a decade of experience within the real estate industry. She is a senior associate editor with Commercial Property Executive and Multi-Housing News who also writes monthly multifamily reports at Yardi Matrix.

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