In a recent development, homelessness in Nashville is on the rise. This is mainly a result of wealthy Californians migrating to the area, and as they do this, the prices of homes go higher.

Reports reveal that homelessness is increasing in the city since many citizens can’t afford homes. This is the result from more people settling in and also an increased need for accommodation.

Nashville’s real estate market scene is changing drastically. Many lifelong residents are finding it impossible to find budget-friendly options due to the spike in house costs.

The city’s homelessness situation is becoming worse as more Nashville families are finding it harder to find a place to live because of this.

The city of Nashville’s ongoing homelessness rate has startlingly increased by 77% in only a single year. 

According to city statistics, the number of individuals experiencing chronic homelessness has increased to 1,525. This is from 863 during the same period last year.

According to the US Census Bureau, Nashville’s population has increased dramatically in less than 20 years, from 1.3 million to 2.1 million. This quick population increase has severely strained the real estate sector.

Finding cheap accommodation is becoming more difficult for locals as real estate prices and costs of living have skyrocketed.

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As per The Daily Mail, Nashville’s advantageous taxes entice big businesses like AllianceBernstein, Amazon, and Oracle. Also, the reduced real estate expenses further augmented the demand for housing.

The sharp increase in property prices brought on by this business inflow is making the area even less affordable.

Nashville’s real estate space is not left behind either. They are feeling the strain as well.

According to the US Department of Housing and Urban Development, the cost of a one-bedroom apartment in the Nashville area has increased by $200 in the last year to $1,442 a month. As a result of this large increase, many residents are experiencing severe financial hardship.

POLL—Should the Government Increase Taxes on the Wealthy To Reduce Economic Inequality?

Substantial monetary initiatives are desperately needed, according to local groups, to tackle Nashville’s worsening housing problem.

A representative from Open Table Nashville told WKRN that hundreds of millions of dollars are required to start off addressing Nashville’s homelessness problem.

Data on migration from the US Census indicates a notable surge in relocation, with over 22,500 former Californians migrating to Tennessee in 2021 and 2022 alone.

There is less property available as a result of this influx’s increase in customer demand and regional real estate prices.

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Nashville’s real estate market has seen significant price increases due to changes in the economy and population.

According to recent data, the standard cost of property that sold in Nashville at the end of February was $414,012, up from $290,983 five years prior.

The city’s changing population is affecting the area’s cultural makeup. Remacia Smith told The Wall Street Journal that she and her family moved to the suburbs as a result of the changes, pointing out how much Nashville has changed.

Nashville used to feel like a major city, but longtime resident John Michael Morgan told The Wall Street Journal that it now feels more like a big town with a small-town vibe.

But campaigners have made it clear that much more work will be needed to combat this growing problem. An advocate from Open Table Nashville stated that homelessness wouldn’t exist in Nashville if a one-time $50 million investment were enough to stop it.

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