Nashville Multifamily Report – Winter 2021
- Feb 15, 2021
Nashville’s economy has advanced consistently in the past cycle, helping it withstand current volatility and mitigating some of the multifamily market’s current woes, at least when compared to larger, coastal metros. The average rent slid 0.2 percent on a trailing three-month basis through November, to $1,276. Meanwhile, the $1,465 U.S. average remained flat on a T3 basis for the fourth consecutive month.
Employment posted a 7.7 percent decline in the 12 months ending in September, outperforming the -9.3 percent national rate. Although leisure and hospitality shrunk by nearly one-quarter during that time frame, construction and financial activities added jobs, expanding by 0.4 percent and 1.1 percent, respectively. The metro’s largest sectors—trade, transportation and utilities and professional and business services—withstood the pandemic’s blows and lost only a respective 0.1 percent and 3.1 percent of their workforce. Professional and business services is also poised for growth, as several companies moved ahead with relocations and expansions. Meanwhile, the unemployment rate dropped to 6.1 percent as of October, from the 15.2 percent April peak.
Both transactions and development rebounded in the third quarter of 2020. Nearly $1.1 billion in multifamily assets traded last year through November for a per-unit price that rose 13.2 percent, while developers had 13,809 units underway through December.