We‘re at a pivotal point when we discuss Nashville’s future. It’s not often you have transportation overhaul bills on the table at the same time as zoning overhaul and codes reform. Transformational things can come from conversations on all three subjects and actions on them together.
Transit-oriented development, for example, aligns with advocates of both transportation and development process reform in Nashville. The worst decision that could be made on any of these issues is to not act. In this case, inaction is a vote for high prices in the city’s core and a vote against overall affordability in Nashville.
Like much of the country right now, interest groups are forming, looking out for only their interest. This selfishness is damaging negotiations among all parties because the decision doesn’t consider opposite perspectives. This is a time for renters, homeowners, developers, investors and officials to have an all-hands-on-deck approach.
One of the most important things we can do is listen. For the last 10 years, residents have seen their neighborhoods change. We hear 100-200 people move here per day, and we see record-breaking home sales, but we sometimes don’t hear the perspective of people who aren’t able to take advantage of this economic growth. For them, it feels like the city is moving without them. As someone who has been there, I understand. It’s easy to be anti-development because you feel that a pause is the only thing that can stop this path from being priced out of the neighborhood you grew up in.
The problem is that at some point action has to be taken, and a pause can have more negative effects long term. Hearing the argument for density and how it relates to affordability may solve the issue that’s causing resentment.
Spot zoning is what we have in Nashville: the process of submitting individual property applications to the city for upzoning or downzoning on a case-by-case basis. It works for special circumstances, but it’s not designed for the bulk rezoning that’s been happening in the last five to 10 years. The result has been an overburdened planning and zoning department, leading to a decrease in efficiency and ultimately slower development process.
This limits the supply of housing, thus increasing the price of housing because the builders are unable to meet demand. This cycle will persist with inaction. This also puts a target on particular districts, making it more likely that certain residents will be displaced more than others.
What’s on the table is the opportunity to improve this process. Streamline development, ease the supply chain and reduce the overall price of housing for residents. Some areas may not have the infrastructure for this type of growth yet, but having a plan in place is the beginning, and combining it with a transportation plan is the way to ensure that communities grow proportionately with infrastructure.
Transit-oriented development, basically bulk, mixed-use housing along transportation lines, allows us to attack two issues at once. It also doesn’t disrupt the inner fabric and character of a neighborhood. It brings in the commercial pattern to neighborhoods, which with more foot traffic, brings more money to neighborhoods that will help build out infrastructure.
With increased land prices, investors have to build expensive homes with multiple rental options to recoup and appease the market. But, we have the opportunity to spread this money to multiple locations across the city and incentivize primary housing to be built for residents. Most developers would sprint to these opportunities if returns were similar to what they could get for building one massive house, which is a reality. Would price-reduced single-family homes not help out current residents? This is the benefit of hearing all sides in the room without bias.
Homelessness, sidewalks, and food deserts are all issues we have here in Nashville depending on the neighborhood you’re in. The reality is we can’t take one step to solve them all at once, but by hearing all voices and putting a plan together that can systematically fund itself, we can begin to put action behind addressing concerns. We have to venture to the middle and be willing to give a little in the short term for a better long term.
Adam Myers is currently the broker/owner of Ten Cap Real Estate Group. He works closely with builders and investors to leverage assets in real estate, as well as educate buyers new to the market on how to make sound investments. He’s also the owner of MyersCo., a development and construction firm that specializes in infill development.
