For years, Tennessee has been an in-migration state, with thousands moving here due to its favorable policies. The pandemic accelerated this trend, as Americans from blue states sought to escape heavy-handed restrictions, take advantage of the changing nature of work, and benefit from Tennessee’s lower cost of living. As a result of that in-migration and other factors, our state is facing a major shortage of housing supply, with one estimate saying we need 56,000 more housing units as of 2020. The housing inventory shortage in Tennessee leads to increased prices, putting the prospect of homeownership or safe and affordable renting out of reach for many Tennesseans. Zoning requirements like large lot minimums or bans on multi-family development have exacerbated the problem. Many local governments have not responded to the housing shortage by relaxing zoning requirements, but in many cases, the requirements have been tightened.
STATUS UPDATE: This legislation did not pass in 2024, but it is something that Beacon Impact plans to work on over time to address stakeholder concerns. We are committed to bringing free-market solutions to housing to address the affordability crisis.