‘A dream deferred’: Home prices are higher than ever, rent not much better as nonprofit looks for solutions

Mye Owens
3 min read
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NASHVILLE, Tenn. (WKRN) – You read about it in books: the American Dream.

It’s a promise of a house, with money left over. For many Americans, however, that dream is far from reality. Home prices are higher than ever, and if you think renting could be the solution, think again.

“We see them there, the cranes, the new buildings,” described Tereva Parham with Stand Up Nashville. “I do believe that growth, you know, it could be a good thing, and it can even be a good thing when it comes to housing, but right now, it’s not.”

‘Just overwhelming’: Nashvillians struggling to afford homes inside city limits

For some, Nashville’s housing challenges are as big as the buildings going up.

“Yeah, housing is a major issue in Nashville,” Bill Tahir said plainly. “Tahir also works with Stand Up Nashville as an organizing director. Lately, he has been focusing on the city’s biggest issues, and housing is one of the largest.

Every corner of Davidson County can feel the demand. According to Realtor.com, the average cost of a mortgage on a starter home in Nashville is $2,955 per month.

So, many have turned to renting, but is that any better?

“I have a friend who within four years, she will have lived in three different apartments and that’s because [of] the increasing rent, and then, you know, a lot of what we see now is it’s dubbed as luxury, but it really isn’t, but also why does everything have to be deemed luxury? Why can’t people just have a good, nice, decent apartments?” questioned Parham.

Franklin, Nashville renters have highest monthly rates in Middle Tennessee, report finds

While many apartment buildings are now offering deals and breaks in the rent, some said it’s not enough.

“Rent increases, they are kind of unpredictable, so folks can’t really react as fast,” described Tahir.

A map from the U.S. Census Bureau showed the amount of “cost-burdened” renters spread throughout the county. Stand Up Nashville said if you’re spending more than 30% of your monthly income on rent, you’re cost-burdened.

“It’s not just folks who are making minimum wage or just making, you know, $15, $20 an hour. That can be someone who’s making $70 or $80,000, or people who are over $100,000. If your housing is more than that, then that’s a problem for you as well,” Parham described.

According to Stand Up Nashville, you should do the math:

Do the math:

  • Step 1: Divide your annual household income by 12 months or multiply your weekly pay by 4 weeks. The answer is your monthly household income.

  • Step 2: Multiply your household income by 30%. The answer is the total amount that your household expenses should not exceed.

Example: $60,000 annual household income ÷ 12 months = $5,000 monthly household income. $5,000 × .30 = $1,500 monthly housing cost maximum.

Renters descend on TN Capitol to advocate for affordable housing, action from legislators

“I think a lot of times, the term affordable housing, it can automatically put someone on edge because it can sometimes “other” folks,” said Parham. “The reality is, you have people who are working full-time jobs within our school districts, but they also have to work one other job or another gig type job, where they’re making more money just to make their ends meet.”

According to the nonprofit, NOAH, 15% of families in Davidson County spend at least half of their income on housing costs.

“The 2008 housing crisis, we never moved away from that, and corporations haven’t been kept from really profiting,” said Tahir.

| READ MORE | Latest headlines from Nashville and Davidson County

More than a decade later and he says the city is still facing similar problems.

“While yes, I’m in an apartment presently, while I have not given up on owning a home, it’s definitely a dream deferred”,” Parham said.

Stand Up Nashville has created an action letter demanding more housing, child care, and jobs to be included in the East Bank deal. Already, thousands of units will essentially be rent-controlled apartments, as required in the deal with Metro, but Stand Up Nashville wants to ensure full services are available for residents.

For the latest news, weather, sports, and streaming video, head to WKRN News 2.

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