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¶
