Happy Friday, Nashville! It’s October 2. New in Nashville’s neighborhoods: a concern about potential tax-funded grants to offset downtown property tax bills, lots of new housing projects, the first Knoblin festival, and a 59 restaurant score.
🌧️ Weather
Rain chances through the weekend. High: 88, Low: 64. Cooling to 70s this weekend.
🏠 A shift in Nashville’s short-term rental market
With Nashville tourism spending projected to grow 5% this year to more than $12 billion, I was surprised to see this next number. Tourism officials said the supply of short-term rentals in Davidson County dropped by about 0.3% so far this year.
“We’re seeing in previous years double digit supply growth. We’re not seeing that right now,” Bruce McGregor with the Nashville Convention & Visitors Corp said. He called it a healthy dynamic with short-term rental revenue still projected to increase nearly 6%.
I asked Greater Nashville Realtors to connect me with someone who could explain what’s happening and the potential impacts on Nashville’s real estate market.
“I think that anytime there’s a reduction in something, there’s kind of a vacuum, and it will be filled,” Sarah Butler told me. She’s a realtor who also owns and sells short-term rentals.
In residential areas like 12 South and Germantown, “they’re just printing cash with different tourists that are coming through. You’re probably gonna hang on to that property.” Butler told me. That’s because grandfathered permits issued where short-term rentals are no longer allowed don’t transfer when a property sells. Butler believes sales have contributed to the reduction in short-term rental inventory.
Short-term rental investors are turning to areas where zoning isn’t strictly residential like West Trinity. “They’re selling these incredibly beautiful, purpose-built Airbnbs where no one else was gonna build residential homes,” Butler said.
A few more interesting trends she shared with me…
A shift in who’s buying properties: people with high incomes from their jobs who need to offset their taxes.
A focus on health and wellness with amenities like barrel saunas, ice bath plunges, and cold plunges. “The people that are kind of like, ‘Ah, put a couple cowboy boots on the wall, and it looks good enough.’ That’s what’s gone away,” Butler said. That lines up with tourism officials talking about the strength of Nashville’s luxury tourism market.
More: my reporting on the top neighborhoods for illegal short-term rentals.
🏠 What’s new in Nashville’s neighborhoods
Downtown (and nearby)
Concern about grants for businesses: Tourism taxes originally slated for paying off the Music City Center are generating so much extra money, a new state board met for the first time yesterday to start figuring out how to spend it. A new state law automatically sets aside tens of millions of dollars for things like a major events fund and public safety. One of the board members, former Tennessee Gov. Bill Haslam, shared concern about one of the many potential uses allowed with the remainder: grants for tourism-related businesses in Downtown Nashville after property tax bills quadrupled in some cases. “I think when we get into this with individual businesses, it's going to be a nightmare,” Haslam said. “You're going to have companies, one across the street, that's eligible and one that's not. And I realize that's part of the assignment, and that's part of what was written in the bill. But I'd encourage us to think about things that are going to be for the greater good.” The board could have access to the money after completion of an audit around mid-December, but the state comptroller wasn’t ready to share amounts. Also in the works: potential application questions for business owners. I’ll keep following this.
Tower on the other side of the Cumberland: More transformation near Oracle’s future campus. Developers filed a final plan for a 17-story, 300-room hotel at 100 Spring Street. It’ll be split between the Tempo and Homewood Suites brands. You can see the plans here. More: my reporting on Oracle’s plans for its River North campus.
Riverfront terrace: A weekend bar at the new Terrace at Riverfront Park opens for the first time at 4 p.m. today. The bar will be open this month on Fridays from 4 p.m. to 8 p.m. and weekends from 11 a.m. to 8 p.m. More info here.
All over town
There are so many housing filings today, I decided to put them into a map and spreadsheet for you so I don’t bog down the newsletter with nearly a dozen different projects. Neighborhoods included: Trinity Hills, Cane Ridge, Antioch, Germantown, Hermitage, Brentioch, The Nations.
South Nashville
Lengthy history with Metro Codes: I’ve never seen so many complaints at one property. This story comes from the 304th and 305th entries for apartments at 270 Tampa Drive. After a new resident complained to Metro Codes about “bugs everywhere,” a floor coming up, and washing machine that flooded the apartment, an inspector ordered the property’s owners to make repairs and bring an exterminator. The inspector returned this week and essentially ordered fixes again.
Trinity Hills
New VA facility: Construction on a new U.S. Department of Veterans Affairs outpatient clinic at Baptist World Center Drive appears to be close to starting. The design team just submitted final plans for the three story, 200,000+ square foot building to Metro. “The facility will provide a full range of essential services, including primary care, rehabilitation, mental health services, radiology, audiology, ophthalmology, and women’s health,” the VA said. Construction is expected to finish by the end of 2028. In the meantime, these drawings indicate there will be construction impacts on traffic on Baptist World Center Drive and Youngs Lane.
Donelson
The first Knoblin Festival: First, what’s a knoblin? The event’s website says “No one really knows,” but the festival’s founders still found a way to build a music and arts festival around it at Old Lebanon Pike and Donelson Station Boulevard. It runs from 10 a.m. to 6 p.m. tomorrow. The event is free. Click here for more about what to expect, and this profile of the festival and the people behind it.
Hocus Pocus: You can watch my favorite Halloween movie on the lawn at the Two Rivers Mansion tonight. “Bring your chairs and blankets, wear your favorite costume, and enjoy an evening with our food truck, yard games, popcorn & Halloween fun,” Friends of Two Rivers said. The grounds open at 5:30 p.m. The movie begins as it gets dark outside. Tickets are $10 per person and $30 maximum per vehicle. More info here.
West Nashville
59 restaurant score: Saigon Restaurant at 5849 Charlotte Pike had “black particulate” forming inside an ice machine and food temperature and storage issues, according to a new health inspection report. You can read the entire report here. And I link to all restaurant inspections at the end of the newsletter.
Madison
Mobile health clinic: The Metro Health Department will have its mobile health clinic set up at Cedar Hill Park from 10 a.m. to 2 p.m. tomorrow. This page explains the service available. Some require an appointment.
📰 A few final headlines…
“Child Protection Clock:” Nashville’s grand jury said it “encountered a disturbing number of cases involving the sexual abuse of children” — 20 cases during its term from July through September. “Equally troubling was the age of some cases when they finally reached us. The oldest child sexual abuse case presented during our 2026 term dated to 2023, approximately three years earlier.” The grand jury called for “immediate local action and statewide legislation to measure and reduce unnecessary delay in child sexual abuse cases.” You can read more of their findings and recommendations, including a change to state law, here.
Utility assistance delay: The Metro Action Commission said it can’t pay for utility assistance right now because federal funding still hasn’t been released. In the meantime, it’s putting people who need help on a waiting list. It called the delay “temporary,” but it didn’t say what’s causing the delay.
Worsening drought: Nashville’s now in a severe drought, according to a new map released by the U.S. Drought Monitor. That’s worse than last week when the map showed Davidson County in a moderate drought. After this weekend’s rainfall, the National Weather Service forecast calls for dry conditions through at least Wednesday. Reminder: Metro Water asked people to follow voluntary restrictions on watering their lawns to reduce pressure on the water pumping system.
Poll results: I asked nash.news readers whether they support continuing the death penalty in Tennessee. 46% of respondents said yes. 54% said no.
🧠 Today’s quiz
Test your memory of yesterday’s newsletter.
What does Maminette, a new restaurant in Donelson, serve? Ramen, tacos, crêpes, or pizza?
🍔 MAP: click here for restaurant inspections across Nashville. And here’s a list version.
Correction, feedback, question? Just reply to this email or email me directly at ryan@nash.news. I’ll be back in your inbox on Monday. —Ryan