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New study: Nashville to add 9,000+ new apartments this year

apartment construction .jpeg
Posted at 9:54 PM, Sep 01, 2022
and last updated 2022-09-01 23:19:24-04

NASHVILLE, Tenn. (WTVF)  — Take a look downtown and you'll certainly spot the growth taking place in Nashville.

In fact, real estate experts said a rise like this hasn't been seen before.

"Right now Nashville is about to have the most apartments delivered in its history, ever built, since it's been tracked," CEO of Apartment Insiders, Joel Sanders, said.

According to a Rent Cafe study, Nashville will see 9,620 new apartments completed this year.

"At Apartment Insiders, we see new apartment communities opening almost weekly right now, and I expect that to continue into the beginning part of next year," Sanders said.

And more rental units mean more options.

"What I think can change is it becomes more of a residents' market than it has been for the past 18 months," Sanders said.

For a long time, demand has surpassed supply, which is why Sanders said, prices have skyrocketed.

"Rents have grown nearly 25% in the past year, which is totally abnormal. They should be 3 to 4%. That's what's normal," he said.

The construction craze will help cool the market, but Sanders said the impact on prices won't be drastic at first.

"The rent growth is decelerating. It's pulling back. Now, that doesn't mean that rents are going down in Nashville," he said.

And while the city continues to face challenges with providing affordable housing, Sanders said the mixed-income units coming soon will provide some relief.

"There is this mindset shift and the way to address affordable housing issue is starting to change a little bit. It's slow, slower than we would like, but there are some incentives being put out," he said.

As for how long apartment construction will remain high, there is no sign things are slowing down anytime soon.