Tennessee has two real estate markets to watch this year, according to Realtor.com. Knoxville is listed among the top 10 undervalued housing markets, while Johnson City might be an emerging market for investors looking into buying homes or renting them out. Whichever strategy or market you choose, there's plenty of opportunity in The Volunteer State!
In 2022, home prices in Tennessee are expected to rise about 4.5%, according to Realtor.com - that's a little higher than the national average of 4.2%.
The growth of Tennessee's population has increased housing demand, pushing up prices and rents across the state. The number one city with a large percentage of renters includes Memphis at 24%, followed by Knoxville (19%) and Clarksville (20%).
Tennessee is one of the most underrated states in America. The recent Tennessee Quarterly Business Report (Q4 2021) reveals that non-farm employment has reached pre-pandemic levels, with nearly 1 million new workers being added back onto payrolls since spring 2020. In addition, a high population growth was recorded within the past ten years, which has helped contribute to strong economic performance between 2010-2020, despite some setbacks like the 2008 financial crisis.
So, where should you look if you're considering buying or investing in a home in Tennessee this year? Here are the top 10 undervalued housing markets in the state, according to Realtor.com:
1. Chattanooga
2. Johnson City
3. Kingsport
4. Memphis
5. Murfreesboro
6. Nashville
7. Oak Ridge
8. Smyrna
9. Cleveland
10. Knoxville
If you're looking for an up-and-coming market to invest in, Realtor.com says Johnson City is worth watching. The site projects that home prices will rise 7.2% there in 2022 - higher than the state and national averages.
What's driving the growth in Johnson City? The city's low cost of living - it's about 14% cheaper to live there than the average U.S. city - and its strong job market. The unemployment rate in Johnson City was just 2.8% in 2020, well below the national average of 4.7%.
Nashville, Tennessee (also known as Music City) is the capital city and home to extensive residential areas. The downtown area houses some very popular musicians and pro sports teams that draw thousands for their games every night at Nashville's newest stadium. It also has plenty more besides just music! Nashville's robust economic growth is powered by health care services - such as those offered through fabulous Baylor Medical Center or beautiful Decatur General Hospital - banking consultancy firms like Paine Turnberry Group Inc., and transportation companies such as Uber. If you are looking for a city with a little bit of everything, then Nashville is the perfect place to buy a home!
The population of Nashville is growing at a faster clip than any other place in the country. The median sale price for homes here was $445,000 last year, and it's crept up by 25% so far this time around! Nashville is also seeing an increase of 41% in the number of renters. And while incomes may be lower on average compared to other places ($62K vs $75K), there are plenty of opportunities available: apartments with cheaper rents right next door or public transportation just minutes away has made it easier for Nashville residents to commute.
Located in the heart of Tennessee, Knoxville is one city that has been ranked among America's top 100 cities to live. The cost of living here remains nearly 18% below average while graduates leave school with 19,000 degrees each year! This eastern Tennessean town also makes it onto several lists for being undervalued by real estate investors
Murfreesboro is a city that's seen its population grow by more than 40% in the last five years and it has one of the fastest-growing universities nearby. This makes for some great residential options with affordable prices. If you're looking at renting, there is even better news - 48% of residents now rent instead of owning property, so don't forget about those renters when making your decision.
Cleveland, Tennessee is located in the southeastern part of the state and has a population of about 41,285. The median home value here is $144,000, which is much lower than the national average. The cost of living is also very affordable, with housing costs being about 18% below the national average. The unemployment rate in Cleveland is also very low, at just 3.8%.
One of the things that makes Cleveland so appealing is its proximity to Chattanooga. Chattanooga is just a short drive away and offers all the amenities of a larger city, without the high cost of living. There are also plenty of outdoor activities to enjoy in the area, such as hiking, camping, and fishing.
If you're thinking about investing in the Tennessee real estate market, there are plenty of opportunities to choose from. Whether you're looking for an undervalued market to invest in or an up-and-coming market with potential for growth, you're sure to find what you're looking for in the Volunteer State.