One sure sign of the strong demand is the upward trend in rental rates.
As of first-quarter 2014, year-over-year rental rates in Nashville rose by 3.7 percent, according to JLL’s Multifamily Performance Statics Q1 2014 report. That growth rate was the fifth best in the U.S.
According to JLL’s report, the only markets that posted higher year-over-year rental growth in the first quarter were San Francisco (5 percent), Seattle (4.8 percent), Denver (4.1 percent) and New York (3.9 percent).
Occupancy rates in Nashville also continue to improve. As of the first quarter, occupancy was 96 percent, up 0.2 percent from the previous quarter.
Despite the ongoing rise in rental rates in Nashville, apartment units are considerably more affordable than in the priciest markets. It’s no surprise that New York leads all markets with an average rental rate of $3,128 per month. The next most expensive market is Boston at $1,820 per month.
By contrast, Nashville’s average rental rate is $801 per month. That amount is comparable to the rates in Southeast markets such as Charlotte ($798), Raleigh-Durham ($810) and Atlanta ($821). The rental rate as of first-quarter 2014 in Memphis was the lowest of the 31 markets included in JLL report – $689 per month.
For more multifamily research, visit the JLL Tennessee home page.