NASHVILLE—The big story for Nashville's growth has been multifamily. Employment gains and new entertainment attractions are luring Millennials to the southern city, which is driving multifamily demand.

For the past five years, Marcus & Millichap reports in its Nashville, 2015 Outlook, the metro has generated an average of 25,000 jobs annually. That has expanded employment more than 3%, far surpassing the national average. The firm predicts the creation of high-quality jobs will continue to draw top talent and young professionals to the metro.

“Substantial supply additions will persist this year, which will put slight upward pressure on vacancy in the near term,” MMI reports. “Despite the uptick, the vacancy rate will remain below 5% as net absorption exceeds 3,000 units for a third consecutive year. While conditions remain tight, operators will achieve another year of respectable rent growth.”