Nashville Bucks Multifamily Rental Trend
Two-bedroom median apartment rents in Music City jumped by 6.2% to hit $1,940.
Multifamily rents may be showing signs of further moderation in 2023, but Nashville is bucking that trend: two-bedroom median apartment rents in Music City jumped by 6.2% month over month to hit $1,940, according to a new report from Zumper.
One-bedroom median rents jumped by 4% over the same period to hit $1,800, a 20% year over year jump. The housing market has been buoyed by a rapid influx of out of state residents moving to the Volunteer State: In-N-Out Burger, Ford, and Tritium all announced expansions there and luxury brands like Four Seasons and Soho House are bolstering the city’s tourism offerings. According to the Urban Land Institute, Nashville is the country’s top real estate market to watch for the second year in a row.
“Music City has long been a popular spot for inward migrations thanks to its cool factor, relatively healthy job market, and some of the lowest tax rates in the nation,” the report notes. “Tennessee residents pay no income tax, and state and local governments have implemented generous tax incentives to lure corporations to the area.”
In addition, there are other multifamily bright spots, especially on the West Coast. Nearly half the California cities on Zumper’s list saw their one-bedroom median rents climb — and it’s likely not a coincidence that large employers in and around these areas have recently called employees back to the office, either full- or part-time (including Disney, Snap Inc., and Netflix),” the report states.
Rents also rose in January in Arlington, Tex.; Buffalo, NY; Denver; Baton Rouge, La.; and Scottsdale, Ariz.