Living urban comfortably impossible for most
The wealth gap between those living comfortably and those who are not is widening in Nashville.
In fact, cities all over the country are getting more expensive to live in and uncomfortable people – i.e., most residents – are feeling the burden especially hard.
While the escalating cost of living is not new, a recent report about what it takes to live comfortably should sound alarms that current efforts to chip away at the affordable housing scarcity are not working well or fast enough.
We need some radical solutions. Back to that in a moment.
On Sunday, I tweeted some news that caused a furious debate among people in the public and private sector across town.
GoBankingRates.com’s 2018 scorecard showed that it takes $80,548 a year to live comfortably in Nashville. That’s 50 percent for necessities, 20 percent for savings and 30 percent for disposable income.
That figure grew from $70,000 in 2017 – a 14 percent increase in only one year.
As one commenter wrote when she shared my tweet on Facebook: “Raise your hand if you got a 10k raise this year ... I’ll wait.”
On Twitter, Christine Valiquette, who holds a Ph.D. from Vanderbilt University, replied to my tweet by writing: “Nashvillians already “knew”. @MayorBriley @ashfordhughes what is the plan to bring incomes for struggling Nashvillians in line with the increased costs of living in the It City?”
Hughes, Mayor’s Briley’s chief diversity, equity and inclusion officer, responded: “The incomes are here. We need to better connect residents with education, training and the certifications needed to acquire higher paying jobs. We have to start from middle school preparing people for the industries in demand that pay living wages.”
As I recently reported, the Mayor’s Office is working on an affordable housing plan to come out soon.
However, the Twitter thread further exposes the tensions people are feeling.
According to the latest Census figures, the median income in Nashville is $49,891. It’s conceivable as more newcomers have come into the region – at about 94 per day – that this figure has risen, but it is unlikely near $80,000.
The average salary increase nationwide grew by 3 percent from 2016 to 2017, according to the Society for Human Resources Management.
In June The Tennessean reported that housing prices jumped 7 percent while wages rose 3 percent in Nashville.
The $30,000 gap between the median income in Nashville and the salary to live comfortably exceeds the gap felt by other comparable cities like Atlanta, Austin, Columbus, Denver, Memphis and Sacramento.
This situation helps lead to further displacement of economically strapped people, whether out of the city, into poverty or into homelessness.
It makes it harder for businesses to fill positions or retain employees — and it can lead to personnel poaching, a phenomenon The Tennessean has written about concerning the construction and restaurant industries.
Other ideas worth looking into include a negative income tax or creating a basic livable wage – in lieu of requiring businesses to keep raising the minimum wage.
Critics might call this socialism, but government already subsidizes a lot, to a smaller or larger degree, such as, health care, education, sports arenas, business headquarters relocation and farmers.
There are good reasons for these investments to help grow an economy.
The same logic could be applied to house people who want to grow with that economy.
David Plazas is the director of opinion and engagement for The Tennessean. Call him at (615) 259-8063, email him at dplazas@tennessean.com or tweet to him at @davidplazas.