Nashville Renters Earning More

From Nashville Business Journal: 

A recent study by Nashville-based Apartment Insiders found the incomes for the average renter in the city had grown 25% over the last year to $70,000. The study was based on information from data company RealPage.

“Nashville’s one-year average renter income increase for new leases signed more than doubled the national average [of 12%],” Joel Sanders, CEO of Apartment Insiders said in a press release. “Both double-digit percentage increase figures are quite amazing. This is another sign of demand in Nashville’s rental real estate market significantly outperforming the rest of the country. These record income increases are helping to fuel the record shattering rent increases.”

A report from Harvard’s Joint Center for Housing Studies identifies the lack of housing inventory for purchase across the country as the driving force behind the higher average income in the rental market.

“Skyrocketing home prices and low inventories have put home ownership out of reach for many would-be buyers. According to [digital real estate company] Zillow, typical home values were climbing at an 18.9% annual rate in September 2021, up from 5.7% the year before. Rising rents have also made it difficult for potential buyers to save for a down payment on a home,” the report states.

The report also found that higher-income households entering the rental market has intensified competition for middle- and lower-income renters to find homes and driven up prices as a result, especially in areas with limited supply.

Nashville’s current apartment inventory stands at over 165,000 units, according to Apartment Insider. Over the course of 2022 that number is expected to increase by 11,435.