Nashville’s Supply Side Shines
- May 31, 2017
Nashville’s multifamily fundamentals continue to be solid on most levels. With strong demand fueled by robust population gains and consistent job growth, the market remains a hot ticket for investors, which acquired more than $1 billion in apartments in 2016. Nashville’s booming economy is broadening the labor force at a rate well above the national average, helping to drive demand for housing.
Nashville’s knowledge-based economy thrives due to growth-oriented industries, such as health care, which continues to attract a highly educated workforce. Overall, employment is healthy, with 24,300 jobs added in 2016. The construction sector grew the most, due to the glut of supply that has come online in recent years. Nashville Metropolitan Transit Authority approved nMotion, a $6 billion transit plan that will develop a large number of high-capacity and rapid transit services over the next 25 years. Public-private collaborations, such as the Partnership 2020 initiative that aims to create economic growth in the region, are also drawing investors to the area.
In response to strong population growth, developers are ramping up construction, with more than 30,000 units in progress. Due to Nashville’s vibrant employment market, which is driving strong rental demand, we forecast a 4.5 percent rent increase for the full year.
Read the full Yardi Matrix report.