NASHVILLE, Tenn. (WKRN) – If you pay rent in Nashville, it may not be a surprise to you that apartment rents continue breaking records with prices rising.
Industry experts say it’s all due to inflation and supply and demand. It may be hard to believe, but there’s currently an apartment shortage in Music City, mostly due to kinks in the supply chain and labor shortages.
Even so, Nashville’s apartment market is being called one of the hottest in the nation.
“Over eight percent in one quarter is astronomical,” Joel Sanders, CEO at Apartment Insiders said. “You would typically see three percent growth for the entire year.”
The average market rental rate for a Nashville apartment was $1,523 compared to $1,404
during the previous quarter of 2021; that’s an 8.5 percent or $119 quarterly rental rate increase.
There are currently 24,090 market rate and affordable apartment units under construction in the
Nashville Metropolitan area, with an additional 26,257 units in planning.
Construction has been completed on 4,413 apartment units so far in 2021.
“There are tons of apartments in town; we don’t know when they’re going to be finished,” Sanders said. “[The supply chain] is really having its impact on the apartment deliveries this year because people are having trouble getting materials to finish these buildings.”
Occupancy rates increased to 95.84 percent, according to a survey from the Greater Nashville Apartment Association.
Sanders says the best value areas include: Bellevue, Hermitage, Donelson, Mt. Juliet and South Nashville.