Earlier this year, we talked with Southern Land Co CEO Tim Downey about his company and the Nashville market. Things change rapidly, so we circled back for an update, and things are looking a little less rosy.

"The level of demand in Nashville used to surprise me, but year after year we have benefited from strong job growth, decent wages and substantial in-migration—all of which has subdued supply concerns," Tim tells us. "But Nashville isn’t a secret anymore and a lot of new players have come to town. We’re just beginning to see the effects of a rapidly expanding development pipeline and increased deliveries."

What has him a little concerned about Nashville’s performance over the next couple of years isn’t necessarily the number of units coming online, but the concentration of units and the rents needed to make the projects successful, Tim tells us.

"Most of Nashville’s apartment growth has occurred inside I-440 and I-40. We're starting to see some rent concessions, debt is more difficult to attract, and we're hearing whispers of projects not moving forward. I’m optimistic about Nashville over the long term, but my guess is we’re going to see some softness in the market over the near term."