Over the past decade, the dream of building an affordable home in the Nashville area has become increasingly out of reach—and a big part of the problem lies in the rising cost of land and the tightening grip of zoning ordinances.
Several years ago, it wasn’t uncommon to purchase a developed 10,000 to 15,000 square foot lot for around $70,000. That price point allowed builders to construct site-built homes that were relatively affordable. If you assume the cost of the land made up about 20% of the total construction cost, a $70K lot supported the development of a $350K home.
Fast forward to today, and that same size lot can cost anywhere from $180,000 to $200,000. Using the same 20% rule, the price of the home now needs to be in the range of $900K to $1 million just to make the numbers work—and that’s before factoring in the rising costs of materials and labor, which have also increased significantly over the past 10 years.
Zoning ordinances add another layer of complexity. Many municipalities still enforce outdated rules—minimum lot sizes, restrictive setbacks, and limitations on housing types—that make it nearly impossible to build smaller, more affordable homes.
Meanwhile, some forward-thinking communities across the country are updating their zoning ordinances to allow for alternative housing models, such as tiny home communities with homes ranging from 400 to 600 square feet. If done right—with shared amenities like local shops, walkable commercial spaces, and community gardens—these communities can be a win-win: landowners get to sell land for a meaningful purpose, first-time homebuyers gain an affordable entry point into homeownership, and the surrounding neighborhood benefits from thoughtful, community-focused development.
If Nashville and its surrounding areas are serious about solving the housing affordability crisis, we must start reimagining how we use land and rewrite zoning ordinances to reflect the realities of today’s market. Otherwise, we risk continuing to price out the very people who want to call this community home.
