Rent Growth Faces Pressure
Nashville’s average advertised asking rent was down 0.5% on a trailing three-month basis, to $1,632, as of November 2024, notes the latest Nashville multifamily market report. A slowdown in employment, paired with strong deliveries and seasonal trends, are a big part of this unfolding story. Meanwhile, the U.S. rate posted a 0.2% decline, on a T3 basis, to $1,744, according to the national multifamily market report. Notably, even with new deliveries accounting for a robust 5.3% of existing inventory, Nashville’s occupancy in stabilized assets slid only 10 basis points year-over-year through October, to 94.4%.
Nashville employment growth softened to 0.6% as of September, trailing the national average since February 2024. The market gained 5,000 net jobs over 12 months. Growth was sustained by five sectors, led by education and health services (7,300 jobs) and government (4,300). Another five sectors lost 12,300 jobs combined, with larger declines in leisure and hospitality (-4,500 jobs) and financial activities (-3,000 jobs). Meanwhile, the unemployment rate still reflected a tight labor market, at 2.9% in October, outperforming the state (3.3%) and the U.S. (4.1%). Notable projects underway include Vanderbilt University Medical Center’s 15-story expansion, which is slated to open its first phase in 2025.
Deliveries totaled 10,111 units through November, a decade high for the metro, which had another 23,107 units under construction. Investment volume surpassed $1 billion in 2024 through November, but the average price per unit fell almost 25%, to $180,274
Read the full Yardi Matrix Nashville Multifamily Market Report: January 2025
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