1. Home Prices
- Moderate Price Growth: Home values in Tennessee have increased year-over-year, but the pace has slowed compared to the peak surge seen in 2021–2022.
- Median Home Price: Varies by region, but statewide averages hover around $325,000–$350,000.
- Regional Differences:
- Nashville area: Remains one of the most competitive with strong demand.
- Memphis and Chattanooga: More affordable options with steady appreciation.
- Knoxville: Gaining attention for its balance of price and quality of life.
- Low to Moderate Inventory: Inventory levels are slowly rising but remain lower than pre-pandemic norms.
- Buyer Demand: Still strong, especially in suburban and rural areas with outdoor space and flexible zoning.
- Higher mortgage rates have cooled the market slightly, leading to longer time on market and more price reductions, but they haven't caused a major price drop.
- Cash buyers and relocators continue to drive activity.
- Rental Demand: Strong, particularly in metro areas and university towns.
- Vacation Rentals: Markets near the Smoky Mountains, Nashville, and Gatlinburg are popular for short-term rental investors.
- Land Sales: Rural land sales and recreational property purchases are on the rise.
- Out-of-state migration: Many buyers from states like California, New York, and Illinois continue relocating to Tennessee for lower taxes and cost of living.
- New construction: Picking up in outer suburbs and rural counties due to space and zoning flexibility.
- Zoning shifts: Some cities are updating ordinances to accommodate more multifamily and mixed-use housing.