After strengthening for six consecutive quarters, annual rent growth in Nashville once again tops the national average. At 3.7%, the annual price hike in Nashville in 2nd quarter 2019 is the strongest since 4th quarter 2016, which was the last time rent growth in this southern market topped the U.S. norm. Before its most recent slowdown, annual rent growth in Nashville reached some of its strongest levels historically, averaging 5.3% throughout much of 2010 through 2016. Class A inventory and huge waves of new supply in a handful of submarkets drove the softening in rent growth in 2017. Across the entire market, competition has stiffened, as inventory growth has soared to unprecedented levels this cycle and construction activity remains elevated.
