Nashville Multifamily Market Report

Home costs retreat from recent highs, but barriers persist. In 2023, nearly 20,900 new residents will move to Nashville, bolstering housing demand. As active home listings in the metro rise from historic lows recorded in 2022, the median home price has begun to decrease. This may place some upward pressure on multifamily vacancy at the higher-end of the quality spectrum, as more affluent renters make the transition to homeownership. Still, the difference between the typical monthly mortgage payment on a median priced home and the mean monthly effective Class A rent was over $900 in June. Elevated mortgage rates are offsetting price relief that has materialized for prospective buyers, encouraging many residents to stay in the renter pool. This, paired with sustained in-migration, enables total occupied apartment stock to hit an all-time high in 2023.