New luxury apartment towers open in Nashville’s Gulch as record deliveries reshape the rental market

Luxury inventory expands in one of Nashville’s most built-out neighborhoods

New luxury apartment units are entering the market in and around The Gulch as Nashville continues to absorb one of its largest waves of multifamily deliveries in recent years. The additions come as developers complete or begin leasing high-rise projects that have been planned since the early 2020s, increasing competition for renters in a neighborhood known for high rents, walkability, and proximity to downtown employers.

One of the most significant recent deliveries in The Gulch is Modera McGavock, a 29-story mixed-use tower with 396 apartment homes and 12,000 square feet of on-site retail. Preleasing began in early July 2025, with first move-ins anticipated that same month. The project is positioned along McGavock Street and 13th Avenue South and is among the tallest residential buildings in the district.

Paseo South Gulch adds another pipeline of upscale housing

The Gulch’s apartment growth is also tied to larger mixed-use districts now being built out. In Paseo South Gulch, the first residential tower, Prima, has been developed as a 16-story building planned for 278 units above a mix of retail and office uses. The broader Paseo South Gulch site has been presented as a multi-building district combining new towers with adaptive reuse of historic industrial structures, centered around pedestrian walkways and street-level retail and restaurant space.

Alongside rentals, nearby plans have included additional high-end residential components. A separate project confirmed for Paseo South Gulch is a forthcoming tower combining a hotel with condominium residences and amenities, reflecting continued investor interest in luxury living formats in the urban core.

Supply surge intersects with a softer rent environment

The Gulch openings land in a broader market where increased apartment completions have pushed vacancy rates higher in many U.S. metros, creating more leverage for renters than during the peak of the post-pandemic rent run-up. National data releases over the past year have linked rent declines to elevated levels of new multifamily supply, with Sun Belt markets among those most affected.

For Nashville, the policy context remains shaped by affordability pressures even as luxury units expand. City housing planning in 2025 set a goal of adding 90,000 homes over the next decade and included a target of 20,000 homes affordable to households at or below 60% of area median income, underscoring the gap between market-rate delivery and lower-cost needs.

What to watch next

• How quickly new Gulch towers lease up as multiple projects compete for similar high-income renter segments.
• Whether additional retail tied to mixed-use projects keeps pace with the rising resident population.
• How citywide housing targets translate into production beyond luxury districts, where most new supply has concentrated.

The Gulch’s newest deliveries illustrate a key tension in Nashville’s housing story: record upscale supply can ease pressure on parts of the rental market, while the city simultaneously pursues long-term strategies to expand affordability at lower income levels.