The Chattanooga real estate market is an often-overlooked market for real estate investors. It's unfortunate because Chattanooga has a lot of potential. It offers affordability, above-average appreciation, demand, a robust rental market, and a stable economy.
The rapidly increasing housing demand in Chattanooga keeps real estate agents busy. It generates a lot of competition between first-time home buyers and real estate investors. Demand is so high that most homes sell in just 35 days.
Chattanooga's potential should put it on any real estate investor's list.
Nestled along the Tennessee River in the foothills of the Appalachian Mountains, Chattanooga's beauty attracts residents and tourists alike.
Whether you're looking to invest in a short-term or long-term rental, Chattanooga homes have something for everyone. Real estate investors can find nearly every property type in Chattanooga's homes for sale. They include everything from turnkey condos and duplexes to single and multi-family homes.
The Chattanooga area is home to many great neighborhoods and suburbs for real estate investors to consider. They include Cleveland, Dalton, Hixson, Northshore, and Red Bank.
In Chattanooga, affordability combines above-average home value appreciation and demand to create a great investment opportunity.
According to Realtor, the median listing price in Chattanooga is $171 per square foot with a median sale price of $299,900. Zillow's Home Value Index reports a 28.7% change since last year. The median rent in Milwaukee is $1,500 per month.
Nearly half (48%) of households are occupied by renters. This creates a solid rental market that generates demand for affordable rental properties. Demand is so high, in fact, that Chattanooga only has a 2.8% vacancy rate. Experts project that real estate investors can expect a cap rate of 3.12% in the Chattanooga area.
A Chattanooga rental property has the potential to yield significant returns and increase cash flow for real estate investors and property management companies.
Chattanooga, TN, is located just north of the Georgia State Line and is the halfway point between Atlanta and Nashville. It's also the 3rd largest city in Tennessee and grows at a rate of 0.75% yearly.
Chattanooga's primary industries are healthcare, manufacturing, and retail trade. The largest employers are Erlanger Health System, BlueCross BlueShield of Tennessee, Hamilton County Schools, and the Tennessee Valley Authority. The Chattanooga area is also the headquarters of McKee Foods Corporation (Little Debbie Snacks) and home to Volkswagen of America's manufacturing plant. These employers provide stable, well-paying jobs. In fact, the unemployment rate in Chattanooga is just 2.9%.
The Chattanooga housing market offers affordability, home price appreciation, demand, and a stable economy. They combine to create a tremendous investment opportunity.