For Every 100 Existing Apartment Units, There Are 13 New Units Underway
As a percentage of current inventory, Nashville ranks #1 with the highest amount of anticipated apartment deliveries in 2022 as compared with other major US apartment markets. Nashville has 11,435 apartment units expected to hit the leasing market in 2022, which is 6.9% of the market’s current apartment inventory according to multifamily data company RealPage.
Other secondary apartment markets often compared to Nashville will have higher unit numbers delivered in 2022. Austin, TX will have 18,375 units delivered, and Phoenix, AZ will have 21,618 units delivered. Yet Nashville still ranks ahead of them as a percentage of current supply. Denver, CO will have almost as many units delivered as Nashville with 11,122 units expected; however, that’s only 3.5% of its current inventory – about half that of Nashville.
These numbers certainly present interesting optics for the Nashville apartment market as compared to the rest of the country. The key point is that it’s a percentage of current inventory. Simply put: Nashville needs more apartments. It doesn’t matter if they are luxury apartments or workforce housing. Either type will lease up.
Nashville has seen large numbers of apartments delivered over recent years, and they keep coming. There are over 21,000 apartment units currently under some phase of development in Nashville, which is a historical high for the market. That figure has steadily been increasing since 2018. It will increase the current number of apartments by 12.8%. Less than 5,000 apartment units were under development 10 years ago.
Historically Nashville has a strong record of proving it can absorb new apartments relatively quickly. Rental housing demand remains strong. 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 of the reasons employers and residents of those areas continue to show ongoing interest in Nashville.