NASHVILLE, Tenn. (WKRN) — It’s a constant cycle: we build, they come.
New data from Apartment Insiders shows Nashville is projected to have the highest percentage of growth in apartment inventory in 2022 compared to all other U.S. markets.
About 21,000 units are currently under construction in Nashville, with about half being delivered this year.
“Nashville needs to be able to build this housing in order to be able to continue to attract these companies and the people that we’re attracting,” Joel Sanders said, Founder & CEO, Apartment Insiders.
Attractive we are.
The demand for housing, from apartments to single-family homes, is strong. It’s why it seems everywhere you look something new is going up.
Apartment construction in Nashville is the highest it’s ever been and has been on a steady growth pattern since 2018.
As you’ll see in the figure below, there are other U.S markets that will have more apartment units delivered overall in 2022, with Phoenix seeing more than 21,000, Austin, around 18,000, Seattle, nearly 16,000.
But Nashville ranks number one when it comes to the percentage of current supply with 11,435 unit deliveries projected in 2022, increasing our inventory by 7% — the highest in the nation.
“Where is the issue?” Sanders questioned. “Is it that we have too many apartments under construction or is it that we haven’t had enough to support all of the people wanting to live in Nashville previously?”
Sanders says Nashville doesn’t have nearly as many apartments as it needs.
“Apartments in Nashville absorb relatively quickly given the demand and have a strong track record of doing so. Typically having a lot of apartments coming online may cause developers to slow down or lower their interest in a specific market. However, Nashville has proven that if apartments are built, people will lease them,” Sanders said. “The ability to build more housing helps attract people and companies to Nashville. There are areas, especially in the Northeast and West Coast, where building new housing can be a lot more restrictive. That’s one the reasons employers in those areas continue to show ongoing interest in Nashville.”