NASHVILLE, Tenn. (WTVF) — A new study in Tennessee shows that one in four households in the state have to spend at least 30% of their income on housing.
The findings came out in a panel Wednesday before the Tennessee Advisory Commission on Intergovernmental Relations, where lawmakers and the public can hear panelists on various topics.
Housing trends in Middle Tennessee have only grown upward, particularly when it comes to price points.
“We are growing 9,000 to 10,000 residents every year,” said Joe Carr, Rutherford County Mayor. “Because of the pressure on the influx, affordable housing is on the top of my list for problems to resolve. We need to make sure we have housing affordable for people who have been there all their lives.”
The study looked at how many units each of the 95 counties would need to see more affordability. In that data, Williamson, Rutherford and Davidson need more than 4,000 housing units in their counties to see more equitable price ranges in housing needs.
“We all think about our income,” said Angela Hubbard, housing director for the Metro Planning Department. “It’s an issue that could affect any of us. It’s more acute the lower your income is. A healthy community has a healthy supply of market rate. We need to think across the whole spectrum.”
Panelists argued there wasn’t enough housing in their areas for all income needs, particularly those who earned less or the minimum wage. They warned that could create job openings in their counties that businesses would have a hard time filling.
The six panelists also urged state lawmakers to think of solutions prior to the 2024 session, pointing to the fact that the more residents spend on income the less they will spend on sales taxes. Lawmakers during the August special session lamented that sales tax projections could hit below expectations, creating a revenue shortage for the state budget at a time when Republican leaders want to stop using federal dollars for education.
State lawmakers will receive a full report by the end of December prior to the start of the legislative session.
