Nashville Apartment Rents Continue to Break Historical Records
Supply Chain Constraints are a Contributing Factor
NASHVILLE, Tennessee, October 27, 2021 – The Nashville area occupancy and rental rates for apartments are at an all-time high during the 3rd Quarter of 2021 even surpassing the strong performance of 2021’s 2nd Quarter. The average market rental rate for a Nashville apartment was $1,523 compared to $1,404 during the previous quarter of 2021; that’s an 8.5% or $119 quarterly rental rate increase. Occupancy rates increased to 95.84% according to a survey from the Greater Nashville Apartment Association (GNAA).
“Very few apartment communities are offering any sort of rental rate concessions right now for new leases. It is worth noting, however, that renewal rental rates don’t seem to be increasing as aggressively as asking rents in the overall market.” says Joel Sanders, Founder & CEO of Apartment Insiders, “Supply chain issues and labor shortages are slowing down apartment deliveries. When you add those constraints to the consistently strong demand in Nashville, apartment rents continue to go up and break new records. Apartment communities really caught on to their pricing power and pushed rents quite a bit between the 2nd and 3rd quarters of this year.”
There are currently 24,090 market rate and affordable apartments units under construction in the Nashville Metropolitan Statistical Area (MSA). That is 2,427 more units than in the 2nd Quarter of 2021. There are an additional 26,257 planned apartment units under speculative construction. Construction has been completed on 4,413 apartment units thus far in 2021.
“While we might see some seasonal cooling off in rent growth during the upcoming 4th quarter of this year and 1st quarter of next year, I don’t anticipate these higher rents in Nashville to be short-lived. This could even be a granular look into what is happening with inflation: It costs workers more in rent to live. Companies are having a tough time finding workers right now. They have to pay those workers more to hire and retain them. Then the business raises prices on its customers in order to be able to pay its workers higher wages so the workers can pay their rent.” Sanders said.
There have been a record number of apartment sales in Nashville in 2021 with over 10,000 apartment units changing hands. The well-respected Urban Land Institute’s Emerging Trends in Real Estate report recently named Nashville the number 1 real estate market in country for 2022.
About Apartment Insiders
Apartment Insiders is a Nashville, Tennessee-based real estate brokerage that specializes in connecting apartment seekers with their perfect apartment through a hyper-personalized and knowledge-driven approach. The service is completely free to apartment residents as Apartment Insiders is paid a marketing fee from the apartment community where a client leases. Apartment Insiders works with hundreds of apartment communities in the Nashville area. https://apartmentinsiders.com/