Nashville Multifamily Market Report
Nashville Market Overview
As reported by Axios, Nashville is among four Sunbelt cities identified as significant economic centers in the U.S., suggesting a potential shift in prominence. The Nashville MSA houses 500 healthcare companies, including 17 publicly traded ones. Additionally, tech giants like Oracle, Amazon, and Meta have invested billions of dollars in Middle Tennessee.
Despite Capital Market’s headwinds, Nashville’s economy has experienced significant growth over the last few months. This is indicated by preliminary Q1 2024 data, which shows an increase of over 95,000 nonfarm payroll jobs compared to February 2020. The market’s Metropolitan Statistical Area (MSA), spanning 14 counties, gained over 31,000 residents in 2023, marking the second consecutive year of surpassing 30,000 new residents after a 37,000 increase in 2022. Nashville has also welcomed nearly 81,000 new residents since 2020, representing a 4% growth rate. This growth places Nashville as the eighth fastest-growing MSA with over 2 million people, comparable to Phoenix and just behind Houston.
Nashville also boasts a robust job market, with an unemployment rate of 2.8% as of January 2024, consistently below 3% for seven consecutive months. Major corporations like Amazon, Oracle, AllianceBernstein, HCA Healthcare, and Capgemini have taken notice of Nashville’s growth and are in the process of creating new jobs in the city.
Several major universities, including Vanderbilt University, Belmont University, Tennessee State University, and Middle Tennessee State University, are headquartered in Nashville, collectively enrolling about 50,000 students. This educated talent pool has attracted companies seeking high-value operations, leading many college graduates to stay in Nashville to kickstart their careers after graduation.
Nashville hosts four major professional sports teams: the Tennessee Titans for NFL, Nashville Predators for NHL, Nashville SC for MLS, and Nashville Sounds for MiLB. Popular entertainment venues in the area include Bridgestone Arena, Ryman Auditorium, and Gaylord Opryland Resort & Convention Center.
According to MacroTrends, the population of the Nashville metro area in 2024 is 1,333,000, which is a 1.37% increase from 2023. The Nashville metro area includes Davidson, Murfreesboro, and Franklin.
Projects Influencing the Nashville Economy
Oracle is building a $1.35 billion mega campus near Downtown Nashville, with plans to hire 8,500 employees by 2031. As of February 2024, about 600 people have been hired, and construction hasn’t started yet. BNA Vision involves expanding the Nashville International Airport (BNA) over the next 5 to 7 years. This expansion includes an on-airport hotel, international arrivals facility, roadway upgrades, additional parking garages, and lobby expansions. Amazon intends to establish two office towers in Nashville Yards, part of a downtown $1 billion mixed-use development. However, there have been uncertainties about fulfilling the pledge of creating 5,000 jobs. The Tennessee Titans’ $2.2 billion stadium broke ground on February 29th, 2024, and is slated for completion in 2027.
Nashville also boasts a robust job market, with an unemployment rate of 2.7% as of January 2024, consistently below 3% for seven consecutive months. Major corporations like Amazon, Oracle, AllianceBerstein, HCA Healthcare, and Capgemini have taken notice of Nashville’s growth and are in the process of creating new jobs in the city.
