NASHVILLE, TN (WSMV) - In recent months, downtown rentals have been falling flat, largely in part to the pandemic. Not only are they not in as high demand now compared to where they were a year ago, they’re also renting for less money.
Although condos and houses are renting for less and having a harder time getting filled, Nashville’s average rent prices are still just barely up from 2019.
When you look at an “expensive” Nashville zip code at the start of the pandemic, which includes areas like SoBro, Green Hills, Germantown or 12 South, typical rent was $1788/month in March 2020. That price grew more than 7% from 2019.
But when you look at more recent numbers from this fall, that same rent price was down by about $50/month on average. Other areas were down much more.
However, those “expensive” zip codes are still where people want to be. When you compare year to year rental rates, even during the pandemic, the higher prices are still up .02% in Nashville.
“Even though you have some restaurants at half capacity and bars the same thing... or maybe your favorite music venue isn’t open or only doing outside shows... there are still a lot of great reasons to be in those downtown areas,” explains Joshua Clark, an Economist with Zillow. “And I think are part of the reason why we still haven’t seen those areas go into the negative territory.”
Clark says their findings show that Nashville isn’t in the red just yet. Although it’s close, he says there’s a lot of optimism coming out of Music City. One reason is the ongoing construction all throughout this pandemic. He says when you’re seeing new hotels, housing, and restaurants popping up, that’s a good sign for the city’s economy.
“I think the construction is a really good sign. In Nashville, all the things that make it great... those things aren’t going away,” said Clark. “This is going to be a temporary negative shock. I know it seems like it’s been dragging on forever, but I do think there’s gonna be a lot of optimism going into 2021 and the city is in a really good position. It’s a good thing that they’re still building.”