Residents of Nashville are finding it increasingly difficult to afford homes as out-of-state buyers flood the market and drive up real estate prices, leaving many with nowhere to turn. Chronic homelessness in the Tennessee capital has skyrocketed by 77 percent this year, according to official city statistics.
Last month, there were 1,525 people experiencing chronic homelessness—those who have been homeless for over a year and have a mental health condition or disability—compared to 863 during the same period last year. Heather Young, a local nonprofit founder, told WKRN that this surge is primarily due to the rising cost of living.
“There is no way for these people to get up and running. They can’t get affordable housing,” Young said.
Nashville has seen a dramatic population increase in recent years, as wealthy out-of-towners flock to the city to take advantage of cheaper real estate and lower taxes, effectively pricing out the locals. U.S. Census Bureau data reveals that the metro Nashville region’s population has ballooned from 1.3 million to 2.1 million in just 23 years, which has led to higher property values and living costs.
Between 2021 and 2022 alone, over 22,500 former Californians moved to Tennessee, based on U.S. Census migration data. Young further elaborated that the influx of new residents and the accompanying cost of living spikes have exacerbated the homelessness issue, adding that she has seen an increase in women and children needing assistance, as well as rising mental health needs that remain unaddressed.
Rent for a one-bedroom apartment in Nashville has soared by $200 in the past year to $1,442 a month, per the U.S. Department of Housing and Urban Development. Young warned that without more affordable housing solutions, the problem could double in severity.
Discarded waste and crowded conditions are increasingly evident in Nashville following the arrival of many Californians. Major corporations like Oracle, Amazon, and AllianceBernstein have also relocated to Tennessee, further compounding the demand for housing and raising local property prices. The median home sale price in Nashville was $414,012 at the end of February, compared to $290,983 five years ago.
For Nashville natives like Remacia Smith, the consequences are stark. She recently had to move to the suburbs with her five children, stating, “It almost doesn’t look like Nashville anymore. Whew Lord, I wish people would stop moving here.”
Similarly, lifelong resident John Michael Morgan expressed concerns about Nashville losing its essence. “Nashville’s always been a big town that felt like a small town. Now we’re a big town that feels like a big town,” he said.
Despite the Metro Council’s pledge of $50 million in American Rescue Plan funding to combat homelessness in 2022, the problem persists. India Pungarcher, an advocacy and outreach specialist at Open Table Nashville, was skeptical about the effectiveness of such initiatives. “If a one-time $50 million investment was going to end homelessness in Nashville, you know, homelessness wouldn’t exist anymore, right?” she posed, adding, “We need hundreds of millions of dollars to even just make a dent in homelessness here in Nashville.”
