In the year-ending 2nd quarter of 2023, the Nashville multifamily market experienced modest overall rent growth of 1.1%, bolstered by a 0.9% increase from the previous quarter to recover from earlier quarterly rent reductions. Among submarkets, North Nashville led the way with strong 4.7% year-over-year growth, while Central Nashville and East Nashville lagged, with declines of -1.3% and -0.2%, respectively. Overall, average rents reached $1,852 per month.
Among the different product classes, Class C units exhibited the strongest rent growth with a 2.0% annual increase, followed by Class B units at 1.4%. Class A units, however, experienced a negligible change, showing a slight 0.1% annual decline. Despite this, there remains robust demand for luxury properties, as evidenced by a notable 0.8% quarterly increase in Class A rents during the 2nd quarter.