MARKET SNAPSHOT

2026 Nashville Forecast

2025

FORECASTED ANNUAL CHANGE

2026

$1,614

Q4 AVG. EFFECTIVE RENT

0.3%

ANNUAL CHANGE

$1,618

Q4 Avg. Effective Rent

91.7%

Q4 AVG. OCCUPANCY

-10 BPS

ANNUAL CHANGE

91.6%

Q4 Avg. Occupancy

9,011

2025 COMPLETIONS

8,812

10 Yr. Avg. Annual Completions

6,020

2026 COMPLETIONS

9,620

2025 NET ABSORPTION

7,390

10 Yr. Avg. Annual Absorption

5,730

2026 NET ABSORPTION

Source: CoStar
Key Market Themes for 2026
  • Nashville’s multifamily outlook for 2026 remains supported by a diversified, service-driven economy, but the metro is transitioning into a more normalized growth phase. That shift should continue to support steady apartment demand, though performance will be driven more by measured job gains, selective sector strength, and a more cautious business environment than the broad-based, rapid expansion seen in prior years.

  • While Nashville remains a high-development market, the construction cycle has been easing for roughly two years. Active construction peaked in late 2022, when more than 25,000 units were underway; since then, deliveries have outpaced new starts, and the pipeline has steadily worked down as fewer projects have been launched to backfill completions.

  • Rent growth is expected to remain pressured through most of 2026, with improvement likely emerging late in the year as deliveries slow, lease-ups progress, and the market moves closer to balance.

MARKET OUTLOOK

Owners in Nashville are still finding it difficult to push rents, with average asking rents down 1.0% year-over-year through December 2025...

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