From a recent article on Builder.com:
11. Nashville, Tennessee
2008 total building permits: 8,142
Nashville, the 20th largest home building market in the US, operated under the radar of the national housing boom. It didn’t ramp up wildly during the boom years, and it’s not contracting viciously during the bust. Median home prices remain an affordable $152,100, propped up by a growing job base. Eighty percent of the residential construction is single-family. Some of the market’s resilience stems from above-average population growth of about 2.3% a year. Back in the day, 2005, Nashville accounted for 16,654 permits; it now runs at about half that level. But that’s a better performance than most major markets.
I certainly do not expect developers and builders to build half as much as they did last year, but there are segments of the real estate market that are under served. There is a real demand for renovated homes in the southern Nashville area.