Central Nashville Apartment Stock Set to Expand Significantly
Central Nashville ranks #2 (following only Brooklyn) among the nation’s busiest submarkets, but this neighborhood is well positioned to handle the incoming supply. With over 9,000 apartments currently under construction, Nashville’s urban core is scheduled to expand its existing base by an incredible 35.7% in the near term. In the past 10 years, Central Nashville has averaged delivery volumes at a much softer 1,500 or so units annually. By comparison, over 4,600 units are scheduled to complete in calendar 2022, which is more than three times the 10-year average. Even with elevated new supply, however, this submarket is expected to absorb the new stock well, as apartments here are in high demand. As of February, occupancy in Central Nashville was tight at 96.1%. Effective asking rents were up 20.6% year-over-year as of February – a significant performance for this submarket that rarely sees price increases above the 8% mark. While fundamentals did stumble during 2020 in the depths of the COVID-19 pandemic, Central Nashville has recovered in recent months.