Nashville, TN

Market Update

Nashville's population has shown a steady upward trajectory, reaching approximately 2.15 million in the fourth quarter of 2026, reflecting a year-over-year growth rate of 2.26%. This growth is supported by a net migration of over 47,500 individuals, contributing to a diverse demographic landscape. The median household income stands at $88,800, with an unemployment rate of 3.4% and total employment figures at about 1.17 million. The renter share of the population is 35.4%, indicating a robust demand for housing in the market, driven by both economic stability and population growth.

In the multifamily sector, the median gross rent is reported at $1,627, with a year-over-year rent growth of 1.3%. This growth is below the national median of 3.5%, suggesting a more moderate pace of rental increases in Nashville compared to other markets. The asking rents for various unit types indicate a competitive pricing environment, with two-bedroom units averaging $1,827. The current rent levels highlight ongoing affordability challenges, particularly as they remain close to the HUD Fair Market Rent benchmarks, which typically run below market rates.

Capital markets for Nashville's multifamily sector show a cap rate of 6.73%, which is approximately 31 basis points tighter than the national median of 7.04%. Over the trailing 24 months, there have been 268 transactions with a total volume of about $815.6 million and a median price per unit of $385,000, significantly above the national median of $199,975. This indicates a strong investment interest in the market, despite the slower rent growth. According to CBRE Research, Nashville's multifamily market continues to attract attention, reflecting its ongoing appeal to investors amid a competitive landscape.