Downtown Real Estate Market Beginning to Slow

Downtown Real Estate Market Beginning to Slow

In his recent search for a downtown living rental unit, Bob Schenerlein was offered a month’s free rent at the Element Music Row high-rise luxury apartments nearing completion on Demonbreun Street.

“I was a little surprised, but thought that was a nice offer,” said the biotech industry manager who ended up renting a condo at the Twelve Twelve tower in the Gulch, where he plans to move from Brentwood.

Had Schenerlein signed up within 48 hours of receiving a quote from Velocity in the Gulch apartments, he would’ve seen application and new resident administrative fees cut by 77 percent to $99.

Experts see the return of such perks to entice renters as a key indicator that the explosion of large apartment buildings around Nashville is catching up with the number of people who can afford to occupy them.

“It’s a sign that the amount of new supply is beginning to meet the demand, and the market is cooling down some,” said Woody McLaughlin, a member of the statistics committee of the Greater Nashville Apartment Association. “It’s not as heated as it has been.”

Eighty-two people move to the Nashville Metropolitan Statistical Area each day, according to U.S. Census Bureau, 2014 American Community Survey 1-Year Estimates. Additional data shows a net daily creation of 103 jobs, helping to fuel demand for new apartments. But with nearly 15,000 units under construction and another 10,000 yet to break ground, some trackers of the city’s booming apartment market are concerned about overbuilding. (continue reading)

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