'They're being priced out': Why many residents are being forced out of Nashville

Hailing from a small Alabama town, Jill Bridges always wanted to raise a family in the big city.

So when Bridges and her boyfriend, Chad Matthews, moved to Nashville in May 2019, they settled in Germantown, one of the city's oldest neighborhoods, full of quaint charm, Victorian architecture and a Mecca for foodies.

Nashville offered them the best of both worlds — bustling city life as well as the tranquility and peacefulness of country living. Fond of the outdoors, Nashville attracted the couple due to its proximity to Franklin, Leiper's Fork and other areas. Music City also offered work-life balance. For Matthews, the owner of a boat rental company, it provided access to nearby lakes.

Bridges began working at a small financial firm in Franklin. Six months later, she was promoted to a role with Caterpillar Financial. Life was good. The young couple frequented Butchertown Hall, Von Elrod's, O-Ku and enjoying all that Nashville had to offer. Within a few months, though, they reached a financial point where they had to re-evaluate their adventurous "yes" attitude just to afford living in the city.

"It definitely came to a point where conversations were like, 'OK, maybe we shouldn't go out this weekend or go to this restaurant on Saturday night because we really just need to save money and pay for rent,'" said Bridges, now 26.

Sixteen months after arriving in Music City, the couple left Nashville, relocating 30 miles northeast to Gallatin, where they now pay $2,000 a month for a small, yet elegant three-bedroom, two-bath unit — nearly half the price they paid for a similarly-sized Germantown space ($3,800). Although not exactly regarded as a food lover's paradise, Gallatin offered what Nashville couldn't: a home with office space, a yard for their 100-lbs. Black Labrador, Bleu, and most of all, affordability.

This case is a reflection of what's occurring across Nashville — the high cost of living is pushing people outside the city limits to surrounding areas. According to the Greater Nashville Area Realtor's Association, Nashville's median home price in July reflects a value of $478,945. That's a 56% increase from $307,000 since July 2018.

Just Askin': Is Nashville closed to new residents?

Larry Lipman, the owner and CEO of RE/MAX Homes & Estates Lipman Group, said many residents are relocating to the outskirts of Nashville — suburban dwellings such as Madison and Hermitage (10 miles from Nashville), as well as places farther out such as Fairview, Mt. Juliet, Kingston Springs and Lebanon (30 miles from Nashville).

The most affordable place in Middle Tennessee? Perry County, according to data obtained from Niche.com. A two-bedroom, one bath, 800-square-foot-unit in Linden is as low as $603.

There is a drawback to saving on rent in Linden: Expect a one-way commute of at least an hour and a half to downtown Nashville, not counting traffic and construction.

Rutherford County saw the largest swell in population growth. Between 2020-22, the county amassed 9,417 residents, according to the U.S.  Census Bureau.

Lipman said in his experience, the majority of residents undergoing this change of scenery are millennials.

"They've been priced out of the market for Davidson County," he said. "They're disappointed; they can't find what they want in Nashville."

Why is Nashville expensive to some, cheap to others?

Experts said the reasons for Nashville's increased cost of living are plentiful.

Nashville's music and hospitality industries continue to thrive; companies relocate here to take advantage of decent corporate taxes; more conservative politics; new employees are lured from out of state with the enticement of no personal income state taxes; and the area enjoys some of the lowest property tax rates in the U.S.

Also, let's not forget: While Nashville is expensive to live in, it's still more affordable than metropolises, said Bishoy Mikhail, the vice president of research with the Nashville Area Chamber of Commerce.

Migration to U.S. cities during the COVID-19 pandemic made a pricey situation costlier as remote and hybrid jobs gained popularity. "People were coming here from all parts of the country, places that were more expensive," Lipman said. "They helped induce inflation."

"Home buyers from more expensive metro areas like Los Angeles, Chicago and New York City found Nashville to have desirable options that increase their standard of living," said Kevin Wilson, the president-elect of the Greater Nashville Realtors. "However, interest in the region has been on an upward trend well before 2020."

Who is to blame? The Golden State? The young and wealthy?

According to a recent study from movebuddha.com, Tennessee was among the top 10 destinations nationwide for departing Californians in 2023. About 3.62% of Californians’ moving interest this year is directed toward Tennessee. In another study by smartadvisormatch.com, it was revealed that Tennessee is one of the top states where the young and rich are moving to. The Volunteer State earned the number eight spot.

"With a total of 7,345 high earners filing in Tennessee between the ages of 26 and 35, the state added a net of 441 new high earners in this group," read the report. Meanwhile, for every one that moved out of the state, two moved in.

High-earning households were defined as those with adjusted gross incomes of $200,000 or more, specifically looking at people aged between 26-35 moving into or out of a state.

That leaves residents new and old like Bridges and Matthews in search of more affordable spaces to one day raise a family.

'It's maddening': Nashville renters squeezed between rising rates, higher living costs

Housing: How do Nashville's surrounding counties compare?

In a decade since 2013 the average single-family home increased 151%, said Greater Nashville Realtors. Statistically, a home purchased for $300,000 in 2013 gained $453,000 in equity over the past decade. This large equity gain not only shows sustained interest in the region, but solidifies the idea that homeownership is a strong investment toward individual and generational wealth.

Just Askin': Why are so many Nashvillians seeking roommates?

Mikhail said while housing prices in surrounding counties are lower, they've also increased with the number of people relocating from Nashville.

• Dickson: $352,450.

• Robertson: $369,990.

• Cheatham: $387,000.

• Maury: $414,000.

• Rutherford: $420,000.

• Sumner: $449,200.

• Wilson: $488,490.

• Williamson: $901,000.

• Montgomery County: $324,900.

While Bridges and Matthews feel frustrated with the overall cost of living in Nashville, they understand the economic toll of continuous city expansion. She said buying a house in their mid-20's doesn't seem financially doable.

"I would say we're holding off right now (on moving back to Nashville)," Bridges said. "We've pretty much got everything that we really need out here, at least for the lifestyle that we're living."

Diana Leyva covers breaking and trending news for The Tennessean. Connect with her by email at Dleyva@gannett.com or follow her on twitter at @_leyvadiana

This article originally appeared on Nashville Tennessean: Why so many people are being forced out of Nashville