Nashville outlines affordable housing challenges and strategies for 2024

Affordable housing took center stage at the recent Unified Housing Strategy (UHS) Feedback Session held by the City of Nashville, highlighting a pressing need for solutions amid rising costs and increasing demand. The meeting revealed that Nashville's area median income (AMI) for 2024 stands at $74,850 for a single household, with affordable housing defined as costing no more than 30% of a household's income. This translates to a monthly housing cost of $1,425 for a family social worker earning around $57,000, and just $550 for a minimum wage worker earning $22,000 annually.

Key findings from the session underscored a significant gap between housing demand and supply, exacerbated by a robust economy attracting new residents while housing production has stagnated since 2008. Stakeholders expressed concern over the lack of affordable options, particularly for those earning below 60% of the AMI, as rental and homeownership costs have surged faster than median incomes over the past five years.

The discussion also highlighted the intersectionality of housing challenges, with single-parent renters and communities of color facing higher rates of cost burden. For instance, 74% of single-parent renters are cost burdened, and Hispanic homeowners experience a 29% cost burden compared to 21% for white homeowners. Vulnerable populations, including the disabled and formerly incarcerated individuals, struggle to find suitable housing, often forced to settle for substandard conditions.

The session concluded with a call for action to address these disparities and improve housing accessibility. As Nashville continues to grow, the need for a comprehensive strategy to ensure affordable housing for all residents remains critical. The housing division plans to release updated AMI data in June, which will further inform the city's approach to tackling these urgent issues.