Building Smarter: Five Ways Developers Can Leverage Nashville’s Housing Reforms

As Nashville works to address rising housing costs and rapid urban growth, a wave of new zoning reforms and funding initiatives is creating tangible opportunities for developers. From easing restrictions on “missing middle” housing to unlocking early-stage capital, the city is laying the groundwork for more equitable, attainable housing options.

Programs like the Nashville Catalyst Fund — a $75 million initiative launched in 2024 — are helping to jumpstart projects that might otherwise stall due to upfront financial hurdles. Meanwhile, zoning changes are reducing regulatory barriers and encouraging thoughtful infill development.

But turning these opportunities into real-world outcomes takes more than policy—it requires strategic design and site development expertise to bring affordable housing projects to life. Working directly on these projects across the city, the real story isn’t in the policy headlines but in the practical shifts happening on development sites.

Here are five opportunities to leverage Nashville’s evolving zoning and funding tools:

1. Use Strategic Site Design to Maximize Efficiency and Lower Costs

The most effective way to improve project feasibility is to reduce construction costs through thoughtful site design. In Nashville, we’re seeing developers gain real competitive advantages by prioritizing compact, efficient designs — shared drive aisles, reduced setbacks, and creative parking strategies that are particularly valuable in hilly areas or tight urban infill sites.

Targeting underutilized parcels near existing transit and infrastructure can significantly reduce upfront investment. Site layouts that minimize grading, shorten utility runs, and incorporate integrated stormwater management can keep affordable housing projects within budget while maximizing the developable area. This approach offers a cost-conscious path to delivering much-needed housing while improving project margins.

2. Leverage New Zoning and Design-Based Districts

Nashville’s transition to form-based and design-focused zoning districts is opening new doors for affordable housing development. The shift from use-based to form-based zoning creates significantly more flexibility — we can now design around form rather than land use, which means more units can fit in smaller footprints without chasing variances.

The opportunity: These updated codes prioritize the look and feel of a project over traditional land use restrictions, offering greater flexibility to fit more units within smaller footprints. It’s a game-changer for infill lots, helping developers turn zoning rules into workable site designs that align infrastructure, access, and stormwater needs — leading to faster approvals, maximized density, and fewer regulatory hurdles.

3. Capitalize on Transit-Oriented Development (TOD) Opportunities

Developing affordable housing near transit hubs offers practical, equitable, and sustainable benefits that smart developers are beginning to capitalize on. We’re seeing more opportunities to design communities around people instead of parking — with multimodal infrastructure gaining traction, there’s real demand for safe, connected, walkable environments that meet transit-oriented development (TOD) standards.

Leveraging TOD frameworks can significantly improve project appeal, access to amenities, and long-term sustainability — all key factors in successful affordable housing initiatives. Designing infrastructure that enhances walkability, pedestrian safety, and multimodal connectivity ensures projects align with Nashville’s broader transportation and community goals, often resulting in additional public support and streamlined approvals.

4. Position Your Project to Access Public-Private Funding

Programs like Nashville’s Catalyst Fund aren’t just looking at affordability targets — they’re prioritizing projects that demonstrate clear infrastructure feasibility and alignment with public objectives. The developers who understand this are gaining a significant competitive advantage by demonstrating infrastructure readiness and implementing efficient design strategies that reduce total development cost.

This approach makes it substantially easier to meet affordability benchmarks and stand out when applying for funding. Engaging engineering expertise early helps identify potential risks— such as utility capacity limits or stormwater issues — before they impact project timelines, improving the chances for successful funding and delivery while delivering cost-effective, technically sound site plans that facilitate smoother coordination with permitting agencies.

5. Leverage Early Coordination to Enhance Equity and Environmental Resilience

Early collaboration with local agencies presents a valuable opportunity to balance density goals with long-term environmental and community health. Nashville’s stormwater code is strict — especially on tight infill lots — and balancing those requirements while preserving unit counts is a constant challenge that requires smart design solutions from the start.

By proactively addressing stormwater management, flood mitigation, urban heat reduction, and ADA-compliant access, developers can create resilient, equitable housing that meets both regulatory requirements and community expectations. Coordinating early with agencies like NES and Metro Water helps prevent late-stage utility conflicts and costly delays — saving time and protecting project viability while promoting sustainable, inclusive development.

Looking Forward: Engineering Solutions for Smarter Growth

Nashville is making meaningful strides by aligning policy, funding, and zoning reforms with the city’s urgent housing needs. This momentum creates a real opportunity to rethink how affordability and sustainability can coexist in new developments.

However, further progress depends on streamlining key processes — particularly permitting and early infrastructure coordination — to reduce costs and accelerate delivery of affordable units. The developers who succeed in this environment understand that bringing the right land development partner in at the concept stage is critical to clarifying how many units a site can actually support, qualifying for funding, and avoiding costly permitting or infrastructure surprises that can derail projects.

Addressing Nashville’s housing challenges will require more than good intentions and policy changes. It demands engineering innovation that integrates efficient design, thoughtful site planning, and proactive collaboration with regulatory agencies. Success hinges on having a true partner who understands Nashville’s unique regulatory landscape and can navigate the complexities that turn policy opportunities into profitable, impactful developments.

Ready to leverage affordable housing opportunities in Nashville? Connect with us.