Think tank calls on West Tennessee policymakers to overhaul zoning before BlueOval population boom

Ford BlueOval City, photographed while under construction in April 2023. (Photo: John Partipilo)

As West Tennessee awaits a population boom expected to coincide with the opening of Ford’s new BlueOval City electric vehicle plant, a Tennessee think tank is urging local policymakers to take a hard look at their zoning laws.

The Beacon Center, a nonprofit think tank that advocates for free markets and limited government, called on West Tennessee counties to overhaul “outdated and arbitrary” zoning laws in a report published Tuesday .

Zoning laws regulate the use of private land, restricting density, lot size, home types and sizes and whether or not accessory buildings are allowed. The Beacon Center examined current zoning regulations across West Tennessee counties located near the BlueOval City site.

Single-family housing is broadly permitted throughout Haywood, Tipton, Madison, Fayette, Crockett and Henderson counties and in many areas in Memphis. Duplexes — a generally more affordable housing option for lower- and middle-income families — are far more restricted, with Haywood being the most friendly for two-family homes and Fayette County allowing duplexes under certain lot size and location conditions. Areas where housing for four or more families can be developed are sparse.

“The whole region is going to grow as a result (of BlueOval), but certain areas are naturally going to end up growing more than others, and that’s probably going to be dictated a lot by where the homes are built, and the zoning laws are going to dictate a lot of where those homes are built,” Beacon Center Director of Policy and Research Ron Shultis told Tennessee Lookout Wednesday.

“What you don’t want to see is current West Tennesseans being priced out of their homes … or their apartments due to rapidly increasing prices due to this growth when you have the ability to plan for it on the front end.

– Beacon Center Director of Policy and Research Ron Shultis

The Tennessee Department of Economic and Community Development estimates that more than 176,000 new residents will move to West Tennessee in the next 20 years, and the region will need more than 70,000 new housing units to accommodate them.

If left as-is, restrictive zoning could limit housing supply and artificially inflate housing costs, the report states. The consequences are many: sprawl into more rural areas creates longer commutes and saps productivity — costing residents both money and time.

“What you don’t want to see is current West Tennesseans being priced out of their homes … or their apartments due to rapidly increasing prices due to this growth when you have the ability to plan for it on the front end,” Shultis said.

Shultis said the way local governments approach housing is a delicate balancing act. For many Americans, their home is their top asset, he said, and families depend on that asset maintaining and growing in value. But the longer a family can’t afford to purchase a home, the more it slows their accumulation of wealth.

First-time homebuyers need options, too, and that can range from a smaller single-family starter home to middle-density housing like duplexes, triplexes and quadplexes. Generally, zoning laws prohibit that “missing middle” on the housing continuum, limiting housing options to either single-family lots or apartments with no in-between, Shultis said.

In West Tennessee, Shultis found a surprisingly wide variety in zoning laws among cities and counties that are otherwise similar in makeup, with one or two towns surrounded by rural land. Madison County generally allows accessory dwelling units (think backyard in-law flats or above-garage apartments) and mixed-use commercial areas. But neighboring cities and counties have “almost completely banned everything other than single family housing,” Shultis said.

Haywood County, Tipton County’s Gilt Edge and Fayette County allow housing developments for two or more families on more than 90% of their zoned land. Milan and Alamo allow multifamily homes on around 30% of their zoned land.

A handful of jurisdictions offer no options for multifamily development, including Arlington, Collierville, Piperton, Three Way and Rossville.

The Beacon Center’s West Tennessee Zoning Atlas provides an interactive map to explore current zoning regulations.

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