A recent national study by the American Enterprise Institute and Burning Glass Institute reveals that only 12% of non-degree credentials such as certificates and industry certifications lead to meaningful wage increases, a finding that underscores growing economic pressures faced by Tennessee workers amid rising housing and living costs.¶
In Tennessee’s major cities, housing prices and rent have surged well beyond wage growth, squeezing residents’ wallets, especially those relying on nondegree credentials to secure jobs.¶
Housing Costs Surge Faster Than Incomes Across Tennessee¶
In Davidson County, where Nashville sits, the median home price jumped nearly 18% from $365,900 in 2022 to $429,945 in 2023. Over the past decade, home prices have more than doubled, rising approximately 44% since 2014.¶
By contrast, median household income in Nashville grew just 5.3% over the same period, according to U.S. Census and real estate data. Similar trends hold in other urban centers:¶
- In Memphis (Shelby County), home prices increased 7.7% from 2023 to 2024, while incomes grew 2.2%. Rental rates there soared 82% over the last decade.
- Knoxville’s average rent rose 56% between 2020 and 2023, but median incomes increased only 3%. Home prices climbed 11.7% from 2022 to 2023.
- Chattanooga’s median home price more than doubled in eight years to $330,000. Rent rose 30% since 2020, yet renter incomes increased only 13%.
Nondegree Credentials Offer Limited Financial Relief¶
Amid this economic squeeze, the AEI/Burning Glass study’s finding that only 12% of nondegree credentials yield significant wage gains spotlights a critical challenge for Tennessee’s workforce. Statewide, 27% of workers with nondegree credentials earn less than $30,000 annually, falling short of most urban living wage thresholds.¶
Tennessee’s Colleges of Applied Technology (TCAT), the state’s largest nondegree credential provider, maintain strong accountability. TCAT graduates boast an 86% job placement rate in their field and a 95% licensure exam pass rate. Yet, these metrics do not guarantee graduates earn a living wage or experience income growth post-placement.¶
Jeff Sisk, Executive Director of Workforce Development at the Tennessee Board of Regents, said, “If a TCAT can’t place at least 70% of students from a program, then that program isn’t justifiably supposed to run.¶
Accountability Measures Fall Short on Wage Outcomes¶
The federally recognized Council on Occupational Education accredits TCATs and tracks placement and licensure, but wage data and career progression are less visible. Graduates may secure jobs paying as little as $14 an hour, insufficient to cover rising housing and living expenses in Tennessee’s urban markets.¶
Moreover, the broad ecosystem of nondegree providers lacks uniform oversight, contributing to uneven outcomes for workers statewide.¶
Toward Better Transparency and Value¶
Tennessee is beginning to address these gaps through initiatives like SCORE’s credential value framework, which evaluates nondegree credentials on metrics including earnings, job outlook, and “stackability” — the ability to build toward higher credentials.¶
Such data-driven tools can empower Tennesseans to make informed choices that align educational investments with real economic returns, helping workers afford to live where they work.¶
As Tennessee’s cost of living continues to outpace wage growth, ensuring that nondegree credentials deliver meaningful financial benefits will be crucial to supporting the state’s workforce and economy.¶
