Nashville Multifamily Report – January 2025
Despite record deliveries, absorption remains surprisingly healthy.
Nashville’s average advertised asking rent was down 0.5 percent on a trailing three-month basis, to $1,632, as of November 2024. 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 percent decline, on a T3 basis, to $1,744. Notably, even with new deliveries accounting for a robust 5.3 percent of existing inventory, Nashville’s occupancy in stabilized assets slid only 10 basis points year-over-year through October, to 94.4 percent.
Nashville employment growth softened to 0.6 percent 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 percent in October, outperforming the state (3.3 percent) and the U.S. (4.1 percent). 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 percent, to $180,274
