Nashville 2Q23 Multifamily Market Insights Report: Supply growth elevated, but absorption gains momentum

Highlights:

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• The Nashville multifamily market posted a solid performance during the second quarter, fueled by accelerating net absorption and rising rents. More than 21,300 apartment units are under construction throughout the region, with a concentration of new development in downtown Nashville.
• The vacancy rate inched higher during the second quarter, rising 10 basis points to 6.6%. Year over year, the rate has increased by 210 basis points.
• Asking rents continued to tick higher in recent months, after falling in the second half of 2022. Apartment rents in Nashville rose nearly 1% during the second quarter to $1,705 per month. Year over year, rents are down 0.8%.
• Multifamily sales activity rose in the second quarter, but year-to-date transaction activity is down 60% from the first half of 2022. The median sales price thus far in 2023 is $178,900 per unit, while cap rates are between 5% and 5.5%.

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