Nashville's affordable housing strategy addresses income disparities and rising home costs

The City of Nashville held a Unified Housing Strategy feedback session on May 21, 2025, focusing on the pressing issue of affordable housing in Davidson County. The meeting highlighted the challenges faced by residents earning at or below 80% of the area median income (AMI), which is crucial for understanding the local housing landscape.

The AMI for Nashville in 2024 was reported at $74,850 for a single-person household and $106,900 for a four-person household. Consequently, affordable housing thresholds are set at $59,850 for individuals and $85,500 for families of four. The housing division emphasized that many essential workers, such as social workers and minimum wage employees, struggle to find affordable housing, with costs often exceeding their income capabilities.

Key findings from the session revealed six major themes: increased housing demand, lack of affordability, limited housing choice, inaccessibility of homeownership, risk of housing loss, and difficulties in navigating housing programs. Nashville's strong economy has driven demand, but a significant drop in housing production since the 2008 recession has exacerbated the supply issue, particularly for those earning below 60% of the AMI.

The session also addressed the widening gap between housing costs and median incomes, with many residents facing cost burdens—defined as spending over 30% of their income on housing. This issue disproportionately affects single-parent households and communities of color, with 74% of single-parent families and over half of Black and Hispanic renters experiencing cost burdens.

Participants expressed concerns about the lack of affordable housing options, leading some to consider relocating to areas with lower costs, which could increase commute times and expenses. The meeting underscored the need for a more diverse housing stock that meets the varied needs of Nashville's population, including larger families and individuals with disabilities.

The session concluded with a call for action to address these challenges, emphasizing the importance of aligning housing production with community needs and ensuring equitable access to homeownership opportunities. The housing division plans to publish updated AMI data in June 2025, which will further inform the ongoing discussions and strategies to improve affordable housing in Nashville.