Zoning Reform Crucial to Nashville’s $3B Transit Plan Success

According to Bloomberg, after a failed 2018 attempt, Nashville voters approved the $3.1B “Choose How You Move” transit initiative last November. The program will expand bus service and improve sidewalks and safety across 54 miles of new multimodal corridors. But a new Urban Institute report warns that this restrictive zoning reform may limit its impact, especially for lower-income residents.

Zoning vs. Transit Access

Only 13% of Nashville’s housing lies within a quarter mile of the new transit corridors. These areas are already gentrifying. Most of the land near new transit still bans multifamily housing, limiting affordable options and reducing access to public transit. Zoning reform is needed to reverse these trends and expand housing choices near transit.

Urban Institute researcher Yonah Freemark says transit investments should shape how cities grow. “We should be thinking about development as something that’s sort of shared throughout a whole community, not just in one neighborhood or one area,” he said.

Mismatch in Development Capacity

Zoning rules limit 90% of residential land to single- or two-family homes. Those areas have used about 95% of their development capacity, leaving room for only 11,000 more homes under current policies.

While commercial zones could add 500,000 units, most of that potential lies downtown — not near the new transit lines. The report highlights another challenge: The areas that do allow multifamily housing often have the lowest property values. Those neighborhoods are less likely to attract new development without incentives.

Roughly 147,000 residents — 21% of Nashville’s population — live within a half mile of the planned corridors. These residents are more likely to be people of color, have lower incomes, and rent their homes. They also have less access to cars. But many of these neighborhoods are changing. About 28% of nearby residents live in gentrifying areas, which see faster increases in home values, incomes, and white population.

As those changes take hold, long-term residents may get priced out of areas with the best transit options.

A Familiar Challenge, A New Approach

Nashville struggled in the past to expand transit, even as its population grew by nearly 25% between 2000 and 2021. Voters rejected the 2018 “Let’s Move Nashville” plan, which proposed a new light rail system. Suburban opposition helped sink the plan.

The current plan takes a more modest approach. It uses a city sales tax to fund better sidewalks, expanded bus service, and safer streets. It also includes a low-income fare subsidy to help more riders afford public transit.

Still, Freemark says affordability isn’t enough. “The next step it needs to do is actually make sure people have access to that transit system — to actually be relatively close to it.”

What’s Next

City planners say Nashville needs 80,000 new homes by 2040. But current rules will allow for only about 50,000. To help close the gap, a recent proposal suggests allowing up to four units on single-family lots and adding more housing near transit lines. Zoning reform could unlock tens of thousands of units in high-demand areas and support the city’s growth goals.

A March study from Metro Nashville Planning supports these changes. It calls for more “missing middle” housing, like duplexes and fourplexes. Some homeowners have pushed back, but city leaders have started to allow more homes in commercial and office zones.

Still, researchers say the city must do more. Otherwise, transit investments could benefit wealthier newcomers while excluding the people who rely on buses most.

The Bottom Line

To get the most out of its transit investment, Nashville needs housing near bus lines. More homes near transit could improve affordability, support ridership, and make growth more inclusive. Without zoning reform, the city risks undermining its $3B investment in mobility.