Rent prices in the Nashville area have shot through the roof.
According to a new report from Colliers International, the average monthly rent for a unit in Nashville has climbed more than five percent to $865.
Despite the increase, people are paying it.
“Nashville has an it factor. People like Nashville,” said Phil Dildine, owner of The Morris Companies.
Experts say the problem is supply has not kept up with demand.
“We're coming out of a deep recession like we've never seen before. There haven't been a lot of new projects or developments,” Dildine told Nashville's News 2.
The area's occupancy rate is at a tight 95.8%.
With demand for rentals strong and vacancies low, the report says overall lack of new supply means significant competition in Nashville submarkets.
Jeff Burgeson is a single father raising three young children. He says he's also desperately trying to find a permanent place for his family to live.
“Me, my older sister, my three kids and her two kids all live together. It's very crowded but it works,” said Burgeson. “I've been looking for almost two years now. There's just not enough places out there.”
Burgeson is in the market for a rental but he says the problem is the price.
“If you find a reasonably priced apartment or home it's not going to be in a good neighborhood. I'm not going to have my three kids in a bad area. I just won't do it,” said Burgeson.
The report goes on to say new projects are in the works locally. Nearly 3,000 units have been approved for future construction.