THDA resources aim to help cities find data-driven housing solutions

By KATE COIL

As local leaders seek to tackle housing issues, officials with the Tennessee Housing Development Agency (THDA) are hoping their data can help municipalities make the best decisions for their communities.  

Rebecca Anderson, THDA director of communications, said one of the organization’s goals is to provide the research local leaders need to make data-informed decisions on housing. 

“Our role in this is just to make people aware and make decision-makers aware that we have tools that bring everything together,” Anderson said. “Affordable housing can mean a lot of different things to a lot of different people and can mean different things across the state. By pulling all this information together, it gives you the data and research to show where you need to focus and where the greatest need is.”  

Dr. Dhathri Chunduru, THDA’s director of research and planning, said there are different facets to the statewide housing crisis in cities across Tennessee.  

“We are in a once-in-a-generation housing crunch, and we are not seeing one demographic who is feeling it more or less in any quantifiable way,” Chunduru said. “We have elderly folks who are feeling the crunch because their homes are falling into disrepair, they can’t afford property taxes, and they aren’t able to age in place in the way they want to. We are seeing young families who, even if they are in a home, are struggling with costs like childcare and transportation. We are also seeing folks on the younger side who can barely pay down their debt, let alone their rents.” 

As a result, the housing crisis is now creating a crisis in transportation and providing basic city services.  

“It is getting harder and harder to afford housing, the people whose work keeps our cities thriving – teachers, police officers, firefighters, and nurses – are having to move out of job centers,” she said. “That is contributing to higher transportation and time costs getting to and from work because they can’t afford to live near where they work.” 

RESEARCH AND RESOURCES 

THDA offers a variety of tools that showcase housing inventory, needs, and valuable demographic data on three major levels: metro and micropolitan statistical areas (MSAs), county level, and development district level. 

Chunduru said THDA does research and maintains data to help monitor statewide housing needs to aid in data-driven decision-making. The 2026 Housing Market at a Glance series provides in-depth analysis of housing trends and projections for the next 10 years.  

“The primary way to use our tools is to think about the geography of where you are trying to understand housing needs,” Chunduru said.  

For a breakdown based on the state’s nine development districts, THDA’s Consolidated Plan Regional Market Analyses assesses the most pressing regional housing needs and outlines how grant programs and as resources from community members, local governments, non-profits, and other service providers can be better allocated.  

The Housing Indicators Dashboard allows viewers to see county-level demographics that allow comparisons between the average age and income level of an area’s residents and the average age and income level of renters and homeowners. Other data breaks down who in the community is cost-burdened by housing needs, the age of the area’s housing stock, what percentage of home sales are in the affordable range for the community, and what percentage of residents who live in the area also work there.  

While many can see the population of Clarksville is booming, Chunduru said the dashboard can show what segment of the population is creating this boom and what types of housing they are looking for.  

“We are seeing not just a huge increase in population, but an increase in household formation,” she said. “There has been a 15% increase in the number of households created in the Clarksville area, compared to only an 11% increase in population. That means household formation is outpacing population. Clarksville has a lot of young families moving to that area, and they are trying to start their lives, afford homes, and make sure their kids are going to a good school. 

The dashboard also reveals average income and what type of housing residents can afford. 

“That young adult population makes up more than a quarter of the overall population of Montgomery County and the 35-65 age demographic makes up 34%. It’s actually really uncommon, because most of the state is seeing increases in the senior population. Clarksville is a unique city with a unique situation that is happening. The income level is also higher than average with 17,000 households making between $100,000 and $150,000 and 12,000 making more than $150,000 a year. If I were an official in Clarksville, I would be thinking about how to take advantage of a young population who ihas cash and wants to buy a home.” 

However, instead of new starter homes being built at the rate they need to be, only 26% of homes sold in the area are affordable to the median-income families. Chunduru said this is a 50% decline in the amount of affordable homes on the market in the region from five years ago. An estimated 3,500 housing units are needed to meet current needs.  

“In the Greater Nashville area, we have about 160,000 households forming in the next decade,” she said. “That is the number of houses we need to build in this very large kind of cluster. However, if you zoom in to just the Clarksville area, that underproduction looks very different across income levels and homeowners or renters.” 

Anderson said a lack of starter homes in an area where there is ample demand can create a second type of housing strain.  

“It leads to a crunch for renters,” she said. “Those people who want to buy a starter home but cannot find one are instead staying in their rentals longer. They are then taking up rental units that could allow someone else to move up the housing ladder. When you think about the housing continuum, you are paying rent while you save up for a downpayment then you move into your first starter home. That isn’t happening, and as a result creates a downward pressure.” 

Not being able to climb the property ladder can then have long-lasting consequences for families and future generations.  

“Whether you choose a condo or a single-family home, the ownership part pays a central role in building general wealth,” Anderson said. “What we are seeing is a delay in that. If people enter into homeownership later in life, it decreases their ability to build generational wealth over time.” 

DIFFERENT NARRATIVES 

Meanwhile, Chunduru said the Cookeville area is experiencing growth similar to Clarksville, and a shortage of quality housing. 

The Regional Housing Needs Model breaks down to the MSA level what the low-income housing needs for an area are and highlights projects in the pipeline that are working to address these needs. Chunduru said this tool shows where substandard housing is statewide with substandard housing defined as housing stock that is aging or falling into disrepair. 

“Something is working Cookeville’s favor in terms of housing stock, which may be why it’s poised for a boom in population,” she said. “It sounds like Cookeville and other cities in Putnam County may also be better positioned to handle a population boom than other surrounding areas. However, going through the analysis, you also see there are a significant number of households – about 17% or 6,000 households – who make below $20,000 a year.” 

Lower average incomes may require different solutions than the traditional, single-family home. 

“For those households, homeownership may not look like a traditional mortgage situation where you can help them establish a mortgage,” Chunduru said. “They don’t have the income to maintain mortgage payments. They may need to look at shared-equity or co-op models. They may also have a home that was passed down to them from a relative, but that they don’t actually hold the deed to. So, Cookeville needs to prioritize those issues rather than Clarksville, which should prioritize building starter homes.” 

Likewise, Chunduru said the tool shows the breakdown of renters in the Cookeville area. Research indicates the majority of Cookeville renters are cost burdened – meaning more than a third of their income goes to rent – and tend to live in buildings with 10 units or less. 

While housing is a statewide conversation, Chunduru said solutions need to reflect local realities. 

“It’s really important that local leaders understand how to advocate for their community’s needs,” she said. “Local leaders probably know their local issues, and these tools can help them develop the policies, programs, and financial investment they need in their area.” 

TOOLS FOR CITIES 

THDA can work with municipalities to help set up a Multi-family Tax-Exempt Bond Authority (MTBA), which allows local issuers to finance multi-family housing.  

“Those affordable housing bonds can go a long way to infuse capital in areas where there isn’t the investment,”  Chunduru said. “Zoning policies are another tool. Even though a lot of suburban and rural areas don’t have the zoning restrictions of more urban areas, sometimes existing zoning laws can prevent development from happening sustainably and cheaply. Minimum acreage requirements can prevent the building of more dense housing, but more dense housing can lower cost of development.” 

Landbanking is another tool local governments can use. By buying blighted and in-fill lots across a city, municipalities can then offer that property at a discount to non-profits or developers who promise to build smaller starter homes or rentals on the land. That incentive has broader, long-term economic consequences for a community. 

Anderson said thinking regionally and acting locally can also be an effective strategy. 

“Operating like a larger body instead of going it alone can bring success,” she said. “I would think about my surrounding cities and my surrounding counties and working together to make housing more affordable. Instead, we are seeing a lot of fragmentation when it comes to rural and suburban policies. We need to see more of a regional conceptualization and realization that a factory coming to one city will impact the whole region. By pulling in your surrounding entities, you can also pull in their resources so if one area experiences a dip in property taxes one year, they have a support system to continue using financing tools. There is a desire for collaboration and partnership, and we need to continue investment in that type of infrastructure for our rural areas, especially as we see extreme weather events also impacting the housing market.”  

Ultimately, Chunduru said she hopes these tools empower local leaders to make informed decisions. 

“We know that a smaller, more rural community can’t afford a major housing analysis the way a larger city like Nashville can,” she said. “This is a way for those folks to go and look up statistics, read reports on the broader region where their city is, and develop a picture of the big trends, the big needs, and what resources are available.” 

Those who need any technical assistance accessing THDA’s data or want to learn more about how they can help address housing needs in their community can reach out to THDA at research@thda.org.