Tennessee Real Estate Market

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.