NASHVILLE, Tenn. (WKRN) — Nashville is a renter’s market. That’s a big swing from the pandemic years when Music City rents were skyrocketing. News 2 asked an expert why this pendulum is swinging in favor of renters.
The February report from Apartment List has Nashville rents taking a cut, down 5% from last year.
“There are quite a few apartment buildings, but not quite enough people to fill them up overnight,” said Joel Sanders, founder and CEO of Apartment Insiders.
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It was just two years ago the rental market was quite the opposite, with prices going 25% higher over two years; but 2024 looks very different.
“Now, somebody can move out of an older building into a brand new luxury building for less money. And so that has caused those B-class buildings to drop their rents. And I think that’s where you see that impact on the overall markets and overall reports,” Sanders said.
The bottom line is developers can’t build massive apartment buildings overnight, so the supply won’t always perfectly meet demand. It’s only a matter of time before the pendulum swings in the other direction, but for now, renters are winning.