Nashville Multifamily Market
Report

Demand proving steadfast. Among major U.S. markets, only Austin, Charlotte, and Raleigh recorded larger inventory growth than Nashville during the three years ended in March. The 17.7 percent expansion of Music City’s rental stock during this interval, however, has yet to significantly increase overall vacancy. Instead, the metro’s rate hovered in the 5 to low-6 percent range over the past 36 months, dipping 10 basis points during the first quarter of this year — highlighted by a more pronounced drop in Class A vacancy. The potential for further compression exists as a steady rate of household formation coincides with the smallest local inventory growth in 11 years.