Answer provided by Sher Powers, President of Greater Nashville Realtors
Usually the home that is being torn down is less valuable than the land under it. Typically, it will be divided for two or more "tall-skinnies" to go up in its place.
While there is a strong argument to be made that the personality of a neighborhood is changed when new homes are built that don't look like the existing homes, this in itself doesn't seem to impact home values negatively.
Many of the homes being torn down are obsolete or deferred maintenance properties that can impact neighborhood values. It's more likely that new homes, along with renovated and well-kept homes on your street, will strengthen your home value.
A great example to evaluate is East Nashville. This area has experienced a large infill of tall skinny homes in a variety of sizes. I've selected a common home size for comparison of new construction tall skinnies with existing homes built any time before 2010.