Nashville Multifamily Report – Fall 2019
- Nov 21, 2019
Nashville’s strong economic and demographic boom is mirrored by its thriving core, which also boosts the rental sector. Rents rose 3.6 percent year-over-year through September, 40 basis points above the national average. Despite a strong delivery pace, the occupancy rate in stabilized properties rose 20 basis points over 12 months, to 95.3 percent as of August.
Music City gained 23,000 jobs in the 12 months ending in September, for a 2.5 percent expansion, 80 basis points above the national growth rate. Leisure and hospitality led gains with 6,200 positions, while professional and business services maintained momentum with the addition of 4,600 jobs. Several companies announced Nashville relocations and expansions, including Mitsubishi Motors North America, Amazon, AllianceBernstein, Ernst & Young, and JPMorgan & Chase.
Multifamily sales totaled $872 million in the first three quarters of 2019, with investors mainly focused on value-add plays. The average per-unit price rose 5.3 percent to $161,479. Some 3,000 units were delivered in the first nine months of the year, with an additional 8,879 apartments underway as of September. The bulk of this pipeline falls under Lifestyle projects. Nashville’s healthy fundamentals will likely keep rent growth above the national average going into the first quarter of 2020.