NASHVILLE, Tenn. (WKRN) – Nashville’s rent is up yet again– increasing .4 percent since last month.
According to data from ApartmentList.com rent in Nashville is up nearly 3 percent over the last year.
Apartment List says Music City has the seventh fastest-growing rent rate among large U.S cities.
“Nashville is a hot market right now our estimates have year over year growth in Nashville at 2.9 percent which is more than double the national rate,” Chris Salviati, a housing economist with Apartment List said.
Apartment List released its November rent report for Nashville Tuesday. It shows in the past five years, rent in Nashville has grown more than 18 percent, outpacing the national average of 11.3 percent.
“Despite the fact the area is building new housing it’s still you know the demand created by that job growth is putting pressure on the prices,” Salviati said.
The median rent for a two-bedroom apartment in Nashville is currently $1,158 compared to the national average of $1,189, according to Salviati.
However, Zillow’s data tells a different story.
The Zillow Rent Index (ZRI) for Nashville shows rents up 2.1 percent year over year, compared to 2.2 percent nationally, or 11.1 percent in Nashville over five years compared to 13.2 percent nationally. The median rent for a 2 bedroom apartment in Nashville is $1,349.
Zillow’s data shows Nashville’s 2.1 percent year over year growth in ZRI ranks 30th among other large cities, not seventh.
Jeff Tucker, an economist with Zillow says the difference in numbers doesn’t surprise him.
“The rental market is pretty opaque,” he said. “That’s why it’s possible for different analysts to come up with different estimates.”
One thing the two economists can agree on: Nashville rent is rising.
“The rate we’re seeing in Nashville is a pretty quick pace of rent growth,” Salviati said.
But Nashville isn’t the only place seeing a price increase. Of the largest 10 cities, Apartment List looked at, all of them have seen increased prices. Murfreesboro had the fastest growth and Franklin was the most expensive.
Compared with other major cities across the U.S, Nashville is still fairly affordable.
Tucker predicts in the next few years millennials in Nashville will start buying, pulling demand out of the rental market and into an owner-occupied market– that in turn, should flatline rents.