Nashville Multifamily Market
Report

Office expansion supports multifamily absorption. Nashville’s apartment vacancy rate will lower again in 2026, following the surge in supply during 2023-2024. Job growth and housing demand continue to be stoked by lower living costs and long-term employment opportunities, including high-profile developments such as Amazon’s second tower at Nashville Yards and Oracle’s $1.2 billion campus. Other corporate investments, such as Gap Inc.’s $58 million facility in Gallatin, are helping drive greater residential development in suburban counties like Sumner. Although overall apartment construction has decelerated, developers are still active, with 6,200 units slated for delivery in 2026. Nashville ranked among the top 10 major metros for young-adult population growth last year, driven by an influx of college graduates and workers drawn by lower living costs and a vibrant job market. As such, new supply should be well received in the CBD, where Class A vacancy fell below Class B last year. Mid-tier apartments are likely to outperform in the suburbs with a stronger appeal to cost-conscious renters. While vacancies may continue to tighten in 2026, elevated supply and softer employment growth will likely keep rent gains restrained.