icepixie: ([Location] Nashville postcard)
[personal profile] icepixie
So apparently the cost of living in Nashville rose by $9,000 in the last year.

That is not a typo. There is not an extra zero added on to the end there.

It's been real, transplants, but y'all can go home now.

Date: 2017-07-13 10:53 pm (UTC)
calliopes_pen: (lady_turner Edith fear panic in the air)
From: [personal profile] calliopes_pen
I knew it was probably bad. I didn't realize it was quite that awful, though. Wow.

Date: 2017-07-13 11:01 pm (UTC)
castalia: (Default)
From: [personal profile] castalia
Holy shitballs. That sounds even worse than I thought it was. I really fear for what sort of rent increase I'm in for next year.

Date: 2017-07-13 11:08 pm (UTC)
castalia: (Default)
From: [personal profile] castalia
Same, as much as I didn't want to make that commitment, now I'm sorry I wasn't in the financial position to buy a few years ago. Now I'm seeing houses in my tiny Donelson neighborhood going for waaaaaay more than they're even worth. At this rate, I'll be pushed out to Hermitage if it continues, unless my landlord decides I'm worth keeping at a lower rate.

I so, so hope this bubble bursts. It's insane.

Date: 2017-07-14 01:08 am (UTC)
castalia: (Default)
From: [personal profile] castalia
Ikr? Some of these houses need a ton of work. My only saving grace is no way is anyone gonna buy my tiny rental house with its 10x10 bedrooms for anything near that much, so maybe other little homes will make it, too. But if I see one more ugly shotgun house crammed with five others on one small lot I will lose it.

*nod* It's really nice out here, very quiet in general, but people have discovered that now. Commutes everywhere will suck if they don't do something soon. And damn, I really do not want to be the next San Fran or anything like it. Jobs here don't seem to pay like that, so I'm confused about where all these rich people are coming from.

Date: 2017-07-14 09:25 am (UTC)
graycardinal: NW Coast Orca (Orca)
From: [personal profile] graycardinal
I don't think it's a bubble, either. But I also don't think it's a straight supply-and-demand problem.

I think the essential trouble is that the 2008 mortgage meltdown happened as the result of lenders pumping lots of imaginary money into the system (in the form of debt that realistically wasn't ever going to be payable)...and none of the "solutions" implemented since then have dealt effectively with the essential unreality of that money. Result: the increasingly wide belief in the existence of vast pools of liquid cash *somewhere* in the economy that can be tapped to pay the tide of new $15/hour minimum wage salaries and/or allow workers in the shallow end of the labor pool to pay for housing built on the premise that all that phantom money was real.

But the reality is that it *isn't* real...thus, no $9K cost-of-living raises, and no way for (for example) a burger chain at the very top end of the local fast food niche to pay its workers $5/hour more across the board without entirely pricing itself out of its chosen market. (Yes, there's a group of local unionizers out here in Oregon trying to do just this.) And mid-to-high-level union shop earners who made (for example) 180% of min wage under the old order? Will never see that percentage again under the new one; 130%, maybe 140%, will be the new top of the scale.

The proper fix at the time would have been for someone -- probably the federal government -- to pull all those imaginary $$ *out* of the economy by simply and formally forgiving all that unpayable debt. Now? Unfortunately, I'm not sure there's a straightforward way to untangle things without actively breaking some part of the economy.

August 2017

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