Image Credit: Sycamore Institute & Canva.
Article by The Tennessee Conservative News Staff –
A newly released report shows that affording basic necessities is becoming increasingly more difficult for many families in Tennessee.
The “Financial Hardship and Affordability” report released by The Sycamore Institute notes that Tennessee families who live below the federal poverty line are often unable to cover the costs of basic household needs including housing, childcare, food, transportation, and healthcare.
The study calculated the amount that Tennessee families across the state would need to survive, with various counties coming in between 85% and 164% higher than those federal poverty lines. It was noted that the federal poverty guidelines were developed in the 1960s and are based on costs from 1963.
According to the study, the most expensive counties to live in are Williamson, Wilson, Rutherford, Trousdale, and Robertson. Coming in as the least expensive are Lincoln, Campbell, Claiborne, Clay, and Benton.
While wages and income rose at a faster rate than inflation from 2019-2024, it is also important to note that most of the costs related to basic expenses rose more quickly than inflation as well. Housing, childcare, and food prices all increase more rapidly, and the cost of healthcare has fluctuated in that time period. Transportation costs did not rise as quickly as inflation.
Despite the increase in wages and income, however, many families are still finding themselves unable to afford what they need. 2019-2024 showed an increase in the number of families falling below the poverty line, but the percentage of Tennesseans decreased.
Lake County in Northwest Tennessee had the highest percentage of households with incomes that fall below the poverty line with 36%. They also landed in the number one spot for greatest percentage of households with incomes that fall below the ALICE estimated survival budget with 71%.
Shelby County was the location with the highest total number of residents that have incomes that fall below the poverty line (170.5k) and also fall below the ALICE budget (167.1k).
The study did not account for household debt or wealth. It also only included data up to 2024, so current conditions are not considered.
The Sycamore Institute is a Tennessee-based research center that focuses on public policy and areas that impact Tennessee residents.
Sources:
Additional Coverage:
