From Jefferson to Davidson to Shelby counties, Tennessee has a housing affordability problem as the demand for new homes has outpaced supply, a new report from the state’s intergovernmental agency details.
Since 2019, Tennessee’s median home price has risen by 44%, surpassing the national average of 34% as tracked by the U.S. Federal Reserve.
The problem isn’t isolated to fast-growing counties and cities, the Tennessee Advisory Commission on Intergovernmental Relations said in its report approved by commission members last week, but across the state, more people are seeking to buy a limited supply of homes, driving up prices and putting the cost “out of reach for many.”
The commission identified zoning, particularly single-family zoning, as one of the driving factors affecting the number of new homes that are built.
(READ MORE: Chattanoogans call for city action on affordable housing crisis)