Homelessness skyrockets in iconic southern city where locals say rich Californians are moving in and driving up property prices

Residents of a small southern town can no longer afford to buy a home as an influx of out-of-state buyers drives up home prices, leaving many with nowhere to go.

According to the city’s official statistics, the number of chronically homeless people in Nashville, Tennessee has increased 77 percent this year.

There were 1,525 people experiencing chronic homelessness – where someone has been homeless for more than a year and has a mental illness or disability – in the city last month, compared to 863 in the same period a year earlier.

Local nonprofit founder, Heather Young, told WKRN that the increase is caused by a sharp increase in the cost of living, she said: “There is no way for these people to get started. They can’t get affordable housing.”

Nashville has seen population growth in recent years, with wealthy out-of-town residents flocking to take advantage of cheaper real estate and lower taxes, pricing out locals.

According to the U.S. Census Bureau, the Nashville metropolitan area has grown from 1.3 million to 2.1 million residents in just 23 years, driving up property values ​​and the cost of living.

According to U.S. Census migration data, more than 22,500 former Californians moved to Tennessee between 2021 and 2022 alone.

Young told WKRN that the homelessness problem is caused by a sharp increase in the cost of living.

She added: “I have seen an increase in the number of women and children. I have seen an increase in mental health that needs to be addressed.”

According to the U.S. Department of Housing and Urban Development, the rent for a one-bedroom apartment in the Nashville area has increased by $200 in the past year to $1,442 per month.

There were 1,525 people experiencing chronic homelessness in the city last month, compared to 863 in the same period a year earlier

Young said without more affordable housing the problem will worsen: “I guarantee it will double from where we are now.”

Prices have risen due to an influx of people and businesses moving to the state.

In recent years, major companies like Oracle have chosen to move their headquarters to Tennessee and bring their employees with them.

Attracted by lower real estate costs and taxes, Amazon also announced it would set up major operations in downtown Nashville, and New York money manager AllianceBernstein said it would move its headquarters to the city, as reported by the Wall Street Journal.

The average home sales price in Nashville at the end of February was $414,012, up from $290,983 five years earlier.

Remacia Smith, who grew up in Nashville, told the Wall Street Journal that she recently had to move to the suburbs with her five children.

“It almost doesn’t look like Nashville anymore,” she said. “Phew Lord, I wish people would stop moving here.”

Local nonprofit founder Heather Young told WKRN the increase is being driven by a sharp increase in the cost of living

Meanwhile, lifelong resident John Michael Morgan, for his part, told the newspaper he is concerned about preserving Nashville’s essence.

“Nashville has always been a big city that felt like a small town,” Morgan said. “Now we’re a big city that feels like a big city.”

The Metro Council has committed $50 million in American Rescue Plan funding to combat homelessness by 2022, but the problem hasn’t gone away.

India Pungarcher, a Nashville-based advocacy and outreach specialist, told WKRN, “If a one-time investment of $50 million ended homelessness in Nashville, homelessness would no longer exist, right?

“We’re going to need hundreds of millions of dollars to, you know, even make a dent in homelessness here in Nashville.”