NASHVILLE, Tennessee (WKRN). After months of uncertainty, it looks like rents in Nashville are recovering.
New data suggests that we may have reached a turning point in the Nashville rental market as more supply is being met by more demand.
“With the opening of the business, I see that confidence in potential tenants has been restored, and I think it is better and more convenient for them to take on the lease obligations,” said Ashley Smith, property manager at RENU Property Management.
The Greater Nashville Housing Association (GNAA) just released its first quarter market research and found that despite the 2020 pandemic, the rental market in Greater Nashville in the first quarter of 2021 was predominantly growing compared to the first quarter of 2020.
“Because developers often have to forecast economic market trends years before a building decision is made, the rise in apartment units in Mid Tennessee signals strong confidence in the region’s economic recovery. The number of new residents moving to middle Tennessee has historically been high, and recent job postings such as Apple and Oracle are only reinforcing this perception. Anyone who has been in the housing market can tell you that the market is strong and there is no sign that the market will slow down anytime soon. ” GNAA wrote on Monday for News 2.
The GNAA also found that there are 19,557 units currently under construction, up 38.22% over 2020. In addition, 987 apartments were commissioned in the first quarter, which is 176.47% more than in the same period in 2020.
“The past year has been challenging for both tenants and landlords, as job loss and changes in lease rules have affected the historical relationship between some property owners and tenants. As we emerge from the pandemic, the market will have to respond to growing demand, and our data shows that this is happening in a wide variety of submarkets. The first quarter report shows that the developer community remains optimistic about the market recovery. “ the written statement was continued by the GNAA.
New apartment listing data shows rents growth across the country, with their national index up 1.9 percent in the past month, the largest monthly increase since they started tracking data in 2017.
Some of Nashville’s attractions this month from the list of apartments include:
- Rentals in Nashville increased 1.9% from the previous month, up from 1.9% nationwide. On a monthly basis, Nashville is ranked 39th among the 100 largest cities in the country.
- Annual rent growth in Nashville is currently 0.7%, up from 2.7% this time last year. It is the 23rd among the 100 largest cities in the country.
- The median rent in Nashville is currently $ 1,072 for a one-bedroom apartment and $ 1,236 for a two-bedroom apartment.
“I really think market rents are back to where they used to be,” Smith said. “I know we are renewing tenants and bringing new homes to market at my company, RENU, 3-5 percent more than we rented them last year.”
Although occupancy declined in 2020, according to the Greater Nashville Apartment Building Association, rents have increased by five percent over the past year due to low number of homes and strong market demand.
“Stocks are so low that I know where tens of thousands of apartments are being built in 3-4 years, and I don’t see it slowing down,” said Johnny Lee, co-owner of Ashton Real Estate Group. “There is such a huge need for people who are moving and there are few houses to buy and the only choice is to rent.”
But this rent has to be paid. GNAA data show that the average highest rent in downtown Nashville is around $ 1,900. The cheapest on average is near Union Hill in Goodlettsville, just over $ 1,000.
“I definitely don’t think we will see the situation get worse, but as people continue to move here as they are and communities start to rent out and achieve the jobs they want, I really think that you will see an increase in overtime, I think it will continue, ”Smith said.
Experts say the numbers show market confidence and a small sign that multi-family housing is becoming attractive again after the pandemic.