NASHVILLE, Tenn. (WKRN) — The new year brought much-needed relief to the rental market with rents falling in 61 of the nation’s 100 largest metros.
Unfortunately, this does not include Nashville. Rent in Music City is still rising after record-breaking rent growth in 2021.
Nashville Apartment rents in January increased nearly one percent from December.
“I think what’s significant is that it’s in January,” said Joel Sanders, CEO of Apartment Insiders. “January is typically a month seasonally when rents go down.”
To give you a better perspective, the normal rental growth rate is around three to four percent every year. What usually happens is you see a slow down in the winter months and a rise in the summer months.
Zillow data shows the typical Nashville rent is more than $1,700, but compared to $3,000 averages on the coast, Nashville rents still have a ways to grow.
“Do I think we’re going to get there anytime soon? Nope, not in this decade,” Sanders said.
However, in 2021, asking rents did increase 19 percent. Sanders said from March through October in 2021, rents were increasing more than $22 per month.
“Our clients are saying hey I don’t want to pay it but I’m going to have to pay it. And they’re getting into pay-to-paycheck situations or rent is taking up too much of their paycheck,” Sanders said.
Uncertainty lies ahead with more supply coming onto the market in the second half of 2022. Will rent rates cool in our summer months? Sanders said it’s hard to predict.