re: Is the "housing shortage" overblown?

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Atlanta is the same way. Not downtown but the neighborhoods in W.Midtown and the eastern sections of the city(Grant Park, Kirkwood, East Lake, E.Atlanta, Virginia Highland) have exploded the last 15 years and the city has gentrified to the point that it is no longer majority-minority.

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If by "majority-minority" you mean more than 50% minority, you are correct, but per neilsberg.com the current demographic breakdown of Atlanta is as follows:

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The percent distribution of Atlanta population by race (across all racial categories recognized by the U.S. Census Bureau): 41.03% are White, 48.19% are Black or African American, 0.29% are American Indian and Alaska Native, 5.01% are Asian, 0.05% are Native Hawaiian and other Pacific Islander, 1.69% are some other race and 3.73% are multiracial.

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I'd hardly call that gentrified. Atlanta is still a hell hole. Buckhead is no longer the safe, enjoyable scene it once was and its residents are still trying to find a way to break out of Atlanta and create their own city.

No. Atlanta is nothing like Knoxville or Nashville in regard to making real and meaningful improvements.

Source for demographic stats above: Atlanta, GA Population by Race (Nielsberg.com)