Nashville Multifamily Market
The Impact of New Housing Supply Will be
Moderated Long-Term by Population Growth
Home costs retreat from recent highs, but barriers persist. In 2023, Nashville is poised to gain 20,900 new residents on net, 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 a typical monthly mortgage payment on a median priced home and the mean monthly effective Class A rent exceeded $900 in June. Elevated mortgage costs 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.