The housing crisis is not unique to Tennessee, but the numbers are hard to ignore: 315,000 new housing units needed by 2035 to keep up with demand, a 200 percent increase in the median home price in a decade, and only 32 percent of homes in the state considered affordable on a median income – down from 71 percent in 2019. One solution to providing more housing is welcoming accessory dwelling units (ADUs). Before the zoning definition, they were commonly called mother-in-law suites, granny flats, or backyard cottages. These small homes add density to already existing lots and offer a simple way to add to the housing stock. Yet many local government zoning restrictions have put them out of reach.
Key Findings:
- Eighteen states, including neighboring Arkansas, have protected property rights by broadly legalizing ADUs.
- In Tennessee, the Middle Tennessee Zoning Atlas found differing levels of local government regulation for ADUs. Over 40 percent of land prohibited ADUs, less than a quarter allowed for them, but only to be rented to family, and about a third of the land allowed ADUs to be rented to anyone.
- Local regulations that limit or prohibit types of housing, especially ones that were common before the days of zoning, do nothing to ease housing costs. For those looking to downsize or a young Tennessean looking for the first place to call their own, ADUs can be just what they are looking for.
- State lawmakers should follow the lead of other states that have protected property rights and allowed for other types of housing, like ADUs, to ease housing pressures on Tennessee residents. With ADUs being less expensive, faster to build, and use lots that are already developed, they are a small solution to a big problem.