Nashville Multifamily Market Report

Line-up of demand drivers temper concerns. Nashville’s apartment sector is well positioned to handle a potential transitionary period, despite entering the second quarter with a vacancy rate slightly above its long-term average. The market’s economy registered some of the strongest employment growth in the nation last year, with the local workforce expanding at a faster rate than the national average during the first two months of 2023. Recent hiring has been diverse, raising both the traditional office-using and retail trade, transportation and utilities job counts to record marks. Growth in the latter segment — and a 20- to 34-year-old cohort that is expanding faster than most major metros — bodes well for Class B and C leasing, following a recent stretch of sizable rent growth. Meanwhile, the expansion of the professional and business sector should support demand for luxury units and a steady rate of household formation.