More apartments in Nashville means more incentives for renters, report says

NASHVILLE, Tenn. (WSMV) - Housing remains top of mind for Americans, whether you’re looking to buy a new home or rent an apartment.

For Nashville, there’s been a surge of apartments citywide. Now, many of them are providing incentives like waived fees and even several months of free rent in an effort to occupy their empty spaces, according to a report from Apartment Insiders.

“Nashville currently has 37,000 apartment units that are under construction, and the majority of those are luxury apartments,” Joel Sanders, Founder and CEO of Apartment Insiders, said.

As more and more apartments are built, property managers are competing for tenants. The report said many complexes are upping the ante by offering incentives of up to three or four months of free rent.

As of October 2023, about 30% of rental listings on Zillow featured concessions. The report said this indicates a substantial shift in the dynamics of the rental market.

“In a market saturated with options, apartments are enticing tenants by offering various deals and incentives to attract potential renters. For them, providing free rent is more convenient than incurring losses due to lower vacancy rates,” the report said. “It’s anticipated a further influx of apartment deliveries in 2024, and it wouldn’t be surprising if we eventually witness incentives offering up to five months of free rent in Nashville.”