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Nashville, the capital city of Tennessee and home to Vanderbilt University, has gone through remarkable transformation in recent years, but is it all a good thing? As the 21st biggest city in the US (ranked by population size), Music City has experienced considerable economic and demographic growth that have attracted an increasing number of residents, corporations, local businesses and promising career opportunities as industries from healthcare and technology to music and entertainment thrive.
With cranes over the horizon and massive skyscrapers that pierce into the sky, the landscape of Nashville has undergone significant change in the urban landscape, with more developments still underway. Companies like Amazon, Oracle, and AllianceBernstein have all created offices and moved to Nashville, gathering momentum for a change further past the skyline. The arrival of these companies has fueled population growth in the Nashville area. In 2023, the Nashville Metropolitan Statistical Area (MSA) saw an increase of 86 people per day, with approximately 66 of those being individuals who moved to the city.
Tourism in the city has also been booming rapidly, recovering from the sharp decline during the pandemic era in 2020, and recording an all-time high in tourists in 2023, over 16.8 million.
What do these developments mean for Nashville?
This rapid influx of progress means that one thing catches up: inflation. With growing demand for products increasing, the prices of both manufacturing products and the price tag both increase proportionally.
Nashvillians have felt quite a significant increase in the price tags of dining, groceries, entertainment, and more. For students and young professionals, these changes are very impactful, often resulting in altered budgets and lifestyles.
By the statistics, Nashville’s residents have experienced a decline in median household income of 1.5%, from $81,221 to $80,034, while inflation has measured a rise of 22.1% since January 2021. Residents pay roughly $1,060 more per month than in 2021 to purchase the same goods and services, spending $12,720+ a year to maintain the same standard of living due to inflation since January 2021.
Many students who want a change from eating at dining halls often turn to grocery runs. The rising tide of inflation in Nashville has not spared the grocery aisles, with recent data showing that Nashville’s overall grocery prices are 2% higher than the national average, a stark sign of Nashville’s rising cost of living. Animal products like meat, poultry, and eggs have risen upwards of 3%. From an interview with junior Joe Rhee, he states, “One thing that I love to do is cook meals for myself and friends when they visit my dorm. It’s something that is a stress reliever on days after a busy week, but recently, a trip to Whole Foods costs me so much, and even the Kroger nearby Hillsboro is expensive for me. Compared to freshman year, I’ve cooked significantly less.”
Dining in Nashville is also feeling the impacts of inflation, where costs are rising for restaurant owners. In the case of PDK Southern Kitchen & Pantry, restaurant owner Peter Demos reported increases upwards of 40% in costs since 2020 due to inflation-driven spikes in ingredients, wages, and supply chain issues, which forced the business to close. Situations like these are not distinct cases, rather a part of a growing trend in Nashville’s hospitality industry.
For students like me, juggling classes, work, and social lives, and for many in the younger workforce navigating early career demands, eating out isn’t just a treat – it’s often a necessity. With packed schedules and limited time to cook, grabbing a quick bite at a local spot becomes a lifeline. Lately, though, in conversations with my peers, I’ve noticed a common thread: we’re all feeling the squeeze. These days, with prices soaring and favorite restaurants increasingly shuttering their doors, it’s hard not to feel the pinch in our wallets and the impact on our daily routines. Rhee explains, “Going out to eat is one of the best ways to socialize on weekends, especially after a busy week. While the Taste of Nashville program where we can use meal money exists, there are so many more restaurants that I would like to try but can’t due to the sheer menu prices. Also, the restaurants on meal money are expensive too, where I can’t even get a proper sushi meal under $20.” Like Rhee, many other students I talked to have complained about increases in prices, and have been priced out of their favorite eateries or reduced the frequency of going out to eat.
In conclusion, Nashville’s transformation into becoming a hub for business, tourism, and innovation has created plentiful opportunities and challenges for its residents. While the city has flourished economically and seen an influx of both tourists and residents, the rising cost of living has placed a significant burden on many people, as maintaining the same standard of living has become more and more difficult with rising prices in groceries, dining, and other essentials. Local businesses are struggling with rising operational costs, leading many to shut down, while increasing menu prices further limit options for residents. Balancing the rapid growth with affordability will prove to be extremely important in ensuring Nashville remains sustainable in its success.
