Nashville Multifamily Market
Report

New units readily absorbed as lower-tier rentals lag behind. Nashville has established itself as a magnet for young workers, propelled by the nation’s second-lowest unemployment rate entering 2025, which encourages recruitment from outside the metro. This dynamic is expected to drive a household formation rate nearly twice the national average this year. Major investments, such as Oracle’s future national headquarters and the addition of over 500,000 square feet of pre-leased office space at Nashville Yards in early 2025, will grow the number of major employers in the urban core. The metro’s expanding industrial sector will also boost hiring, encouraging a steady influx of residents that should keep renter demand ahead of new supply. Fewer deliveries this year are expected to sustain downward pressure on suburban vacancy after Class A rates outside the core fell in 2024. Concentrated new supply in Central Nashville should also be generally well received, as upper-tier vacancy held firm around 7 percent last year. In contrast, lower-tier rentals have experienced weaker demand while price pressures constrain moderate-income households. Still, Nashville’s wage growth outpacing regional inflation — which fell in line with the national rate at the end of last year — should aid leasing.