3 min read October 2023 — In an interview with Invest:, Ralph Schulz, president and CEO of the Nashville Area Chamber of Commerce, discussed Nashville’s ongoing growth and expansion as it continues to grapple with affordable housing challenges. He also talked about the city’s resilience, which he attributed to the diverse economy and collaborative approach to addressing challenges.
Regarding the announcement on development in Dickerson Pike in 2022, how does that impact Nashville’s future?
The central theme in Nashville revolves around managing growth. When we examine the installation of the new stadium, we’re essentially elevating our standards. Additionally, the East Bank development on that side of the river represents the most significant blank canvas for development opportunities in this region. So, when we reflect on the achievements of the past year and contemplate where they are leading us in the future, it becomes evident that we’re witnessing the ongoing expansion of opportunities in Nashville, a process three decades in the making.
Have you observed any significant changes in the realm of affordable housing efforts, or do you believe there is still considerable progress needed?
I believe there’s still progress to be made. The key to economic development lies in creating an attractive living environment that draws in and retains a talented workforce, which, in turn, attracts job creators. Livability is a critical factor and when we assess it, we have to consider affordability. Let me share a couple of quick statistics: when we measure affordability against the national average, we’re officially at 99.2%, although there are new federal government statistics today that indicate we’re closer to 95.8%.
When it comes to housing costs, depending on which statistic you refer to, we’re looking at 105% to 108% of the national index. Housing affordability is a challenge that we need to address. It’s about aligning income levels with housing options, offering a range of housing options based on income, and ensuring proximity to employment opportunities. This makes transportation a vital focus for our community.
If housing is centered around a “drive until you qualify” concept, it upsets the economic balance in the area. We need housing at various income levels across the entire region. This challenge of housing affordability primarily stems from a supply issue. Businesses can play a significant role in addressing this by increasing per capita income because high-wage high-demand jobs make housing more affordable by allowing people to cope with the higher cost of living.
Nonetheless, this is a complex issue and efforts should include upskilling and reskilling the existing workforce, immigration policies and cooperation between the public and private sectors. It’s all connected, as former Mayor Karl Dean used to emphasize, covering transportation, housing, education and workforce development to maintain a balanced and prosperous economy.
What are some of the factors that affect the challenge of affordable housing in Nashville?
Different industries have their own wage standards, which is certainly one factor. Nashville has a strong hospitality sector, where historically, wages are not as high, making it even more challenging to find affordable housing nearby. Therefore, solving the issue of affordable housing will require a combination of public policies and private investment. There are initiatives like converting distressed properties into affordable housing through employer contracts. Employers can offer reduced housing costs to their employees as a benefit, with the business investing in those leases. We’ll see a mix of policies identifying locations for affordable housing and private investments to tackle the housing issue.
Furthermore, subsidizing housing near workplaces can impact homeownership. However, shared equity models, where ownership is supported by a public agency and shared with the owner, can enable people to enter the housing market, benefit from property value growth and retain the housing as subsidized ownership for the next owner.
In the end, the bottom line is that if we continue to grow high-wage, high-demand jobs and invest in reskilling and upskilling our population, it will all contribute in a circular fashion to help people attain the housing they need.
How is the Chamber planning on moving forward for the growth of the city?
I believe one of Mayor Freddie O’Connell’s most significant qualities is his commitment to fostering collaboration, partnership and active engagement with a wide spectrum of the community. This is something of utmost importance at this moment. Thematically, he has already taken steps to expand community involvement with the mayor’s office, encompassing areas such as economic development, support for small businesses, housing concerns and transportation issues.
We hold a positive outlook that Mayor O’Connell will reach out to the community to collaborate on addressing key challenges, particularly in the domains of education, transportation and housing affordability. It’s crucial for him to serve as a unifying force in this regard.
Given the economic uncertainty, what factors will help Nashville maintain its resilience compared to other markets?
There’s a feature that we don’t often discuss but over the past 35 years, it has served as a resilient foundation for Nashville. That feature is the city’s well-balanced economy. When we analyze our economic performance, it becomes evident that economic downturns in Nashville are brief, they tend to start later, conclude earlier and have a relatively limited impact. I believe this resilience is a deliberate outcome of designing an economy that maintains a significant degree of equilibrium.
Nashville’s economic landscape is characterized by several key sectors: healthcare as the top industry, followed by hospitality, the globally recognized music industry, logistics and supply chain and advanced manufacturing. Whenever there’s stress or challenges in one or two of these sectors, the others step in to fill the gap. This stability in the economy is undeniably one of the region’s most valuable assets.
This is possible because Nashville is a community where business leaders and policymakers collaborate actively to address these challenges. I believe that’s a key element of our success. Many solutions to our challenges tend to emerge in Nashville just in time and we don’t shy away from acknowledging these issues. They are out there for everyone to see, discuss and resolve.
One aspect I particularly appreciate about engaging with individuals like Belmont University President Greg Jones in these conversations is his emphasis on the concept of radical champions. These are people who not only recognize the need for change but take action to make it happen. I think this sets Nashville apart. Here, no one avoids the challenges and we have a knack for finding genuine solutions in the process of being forthright about them.
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