Nashville, TN Multifamily Market Report Q3 2026

Nashville multifamily trailing-12-month absorption fell 42% to 5,486 units while trailing-12-month completions fell 39% to 5,513 units, leaving vacancy at 5.3%, 14 basis points tighter than a year ago. Q3 absorption of 1,679 units was nearly flat against 1,703 in Q3 2025. Average rent of $1,622 is down 0.2% year over year and 3.9% below the Q3 2022 peak of $1,688, while sales volume rose 28% to $1.8B. This Matthews™ Nashville, TN Multifamily Market Report Q3 2026 covers demand, supply, pricing, and investment sales across 10 submarkets so owners, investors, and lenders can see where Nashville apartment fundamentals are holding up.

Key Findings

• Q3 absorption was 1,679 units versus 1,703 in Q3 2025, while trailing-12-month absorption of 5,486 units is down from 9,483.
• Vacancy is 5.3%, with South Nashville and Sumner County the tightest submarkets at 5.1% each and Hermitage/Mount Juliet/Lebanon the loosest at 5.6%.
• Rent of $1,622 is down 0.2% year over year, and East Nashville leads rent growth at +3.2%.
• New supply is easing: Q3 completions were 1,600 units, 42% below last year’s 2,771, and trailing-12-month completions of 5,513 units are down 39%. Annual completions peaked at 12,642 units in 2024.
• Investors recorded $1.8B in Nashville multifamily sales over the trailing 12 months (+28%), at $216K per unit.

Nashville Multifamily Supply & Demand Dynamics

How is renter demand in Nashville?

Nashville absorbed 1,679 units in Q3 2026, compared with 1,703 in the same quarter last year. Trailing-12-month absorption of 5,486 units is down from 9,483 a year earlier. Vacancy is 5.3%, and average rent of $1,622 is down 0.2% year over year.

How many new apartments are being built in Nashville?

Nashville recorded 1,600 completions in Q3 and 5,513 over the trailing 12 months, down 39% from the prior 12-month period. Units under construction equal 5.4% of inventory and are concentrated in Franklin/Brentwood, where they represent 13.7% of existing stock. The 11,383-unit pipeline equals about eight and a half quarters of absorption at the trailing pace, so lease-up competition is likely to continue.

Nashville Multifamily Investment Market

What are Nashville multifamily cap rates and pricing?

Nashville multifamily cap rates average 5.50%, up for two straight quarters and 100 basis points above the Q4 2021 low of 4.51%. Pricing sits at $216K per unit. Sales volume reached $1.8B over the trailing 12 months, up 28% from the prior period, with $367M closing in Q3. The 2022 high-water mark was $6.1B. Owners planning a sale or refinance should underwrite to today’s cap rate, not the 2021 low.

Nashville Multifamily Submarket Highlights

Vacancy is tightly clustered, from 5.1% in South Nashville and Sumner County to 5.6% in Hermitage/Mount Juliet/Lebanon. Rent growth is more varied. East Nashville (+3.2%), North Nashville (+2.3%), and Hermitage/Mount Juliet/Lebanon (+2.0%) lead, while Central Nashville (-3.7%) and South Nashville (-2.1%) are weakest. Construction is heaviest in Franklin/Brentwood (13.7% of inventory), Hermitage/Mount Juliet/Lebanon (9.8%), Sumner County (6.9%), and West Nashville (6.5%).

Nashville Multifamily Market by the Numbers

• Vacancy: 5.3%
• Average rent: $1,622 (-0.2% year over year)
• Q3 2026 net absorption: 1,679 units
• Trailing-12-month completions: 5,513 units
• Under construction: 5.4% of inventory (11,383 units)
• Trailing-12-month sales volume: $1.8B (+28%)
• Average cap rate: 5.50%
• Price per unit: $216K

Nashville Multifamily Market FAQs

What is the Nashville apartment vacancy rate in Q3 2026?

The Nashville multifamily vacancy rate is 5.3% in Q3 2026, down 14 basis points from Q3 2025.

What is the average apartment rent in Nashville?

Average rent in Nashville is $1,622 in Q3 2026, down 0.2% year over year and 3.9% below the Q3 2022 peak.

Which Nashville submarket has the lowest multifamily vacancy?

South Nashville and Sumner County have the lowest multifamily vacancy at 5.1% each.

What is the average multifamily cap rate in Nashville?

The average Nashville multifamily cap rate is 5.50% in Q3 2026, up for two consecutive quarters.

Previous Nashville Multifamily Market Reports

Compare this quarter with the prior one: read the Nashville, TN Multifamily Market Report Q2 2026.

The bottom line for owners: easing completions and a 28% rise in sales volume are encouraging, but slower trailing-12-month absorption and an 11,383-unit pipeline keep pressure on rents. Owners in submarkets with limited construction hold the strongest position. Download the full report above for submarket charts and detail, or contact Hutt Cooke, Managing Director in Nashville, to discuss your property.

Sources: Matthews™ Research, RealPage, RCA, CoStar Group, Inc., and BLS. Information is for reference only. Sources deemed reliable but not verified.