With its stunning scenery, warm Southern hospitality and no state income tax, a Tennessee city is attracting a surge of homebuyers, with experts predicting 2025 and 2026 to be record-breaking years for its booming real estate market.
Chattanooga, nicknamed the ‘Scenic City’, is poised for a thriving real estate future as homebuyers flock to the area drawn by its climate, cost of living and strong sense of community.
Both Tennessee and its southeastern city have ‘worked very hard to be the state where industry and businesses and entrepreneurs want to live and work and play,’ Becky Cope English, the owner and managing partner of The Agency Chattanooga, told Fox Business.
Home to around 187,000 residents, the alluring metro near the Tennessee-Georgia border is set to expect new neighbors thanks to several factors, as it has closed nearly 560 sales as of January with roughly 790 still pending.
‘I feel like the election is behind us. I believe that consumer confidence is increasing,’ English told the outlet. ‘This is not meant to be a political statement at all, but when we have businesses and with less regulation, we tend to have an uptick in confidence.’
‘Businesses tend to start becoming more profitable, they’re doing more business so to speak and they’re hiring, and with hiring, you have more people moving from one job to the next,’ she continued.
‘I do think that we expect 2025 and 2026 to be strong years, especially in our market, but that’s probably going to affect the rest of the country as well.’
While consumer confidence is key to the housing market’s success, Chattanooga’s growing appeal is fueled even further by a blend of factors, including its captivating natural beauty and favorable climate, perfect for outdoor recreation and travel.
Chattanooga, a charming ‘Scenic City’ near the Tennessee-Georgia border, is poised for a thriving real estate future as homebuyers are flocking to the area drawn by its climate, cost of living and strong sense of community
Becky Cope English, the owner and managing partner of The Agency Chattanooga, told Fox Business that they predict 2025 and 2026 to be record-breaking years for the city’s booming real estate market
‘From the standpoint of where we are climate-wise, we have the seasons,’ the housing expert told Fox Business.
‘We’ve got the scenery where we can get to the Gulf in six, six-and-a-half hours… and that makes us a very popular destination as well, not to mention close to Atlanta, Nashville, Knoxville and Asheville, North Carolina,’ English added.
Chattanooga experienced a ‘little bit of a dip’ last year compared to previous years, English noted, but added that the dip was part of a return to ‘what I would call a more normal market’ following a strong housing boom during the pandemic.
The housing expert attributed the short-lived dip to the way interest rates were impacting potential homebuyers at the time. According to Bankrate, a 30-year fixed mortgage averaged to a rate of 6.9 percent last year.
Nevertheless, there were more than 10,300 home sales closed in the ‘Scenic City’ in 2024. Now its market is only expected to get hotter as it averages a three percent increase each year, according to English.
The housing expert anticipates ‘about a three percent increase’ in the area’s market in 2025, with even higher growth expected in the following year.
The housing expert anticipates a 3 percent increase in the area’s market in 2025, with even higher growth expected in the year that follows.
‘Perhaps that’s because interest rates will have come down a bit more,’ English explained. ‘I think inflation will be, hopefully, a little more under control, and the consumer confidence will increase.’
Chattanooga’s growing appeal is fueled even further by a blend of factors, including its captivating natural beauty and favorable climate, perfect for outdoor recreation and travel
Sitting along the Tennessee River and tucked in the foothills of the Appalachian mountains, Chattanooga has been nationally recognized for its breathtaking outdoor assets, including sandstone formations, gardens and waterfalls
Former US Senator Bob Corker, who served as Chattanooga’s mayor and chose to return, referred to it as a ‘never-met-a-stranger community’, with loads of attractions
Sitting along the Tennessee River and tucked in the foothills of the Appalachian mountains, Chattanooga has been nationally recognized for its breathtaking outdoor locales, including sandstone formations, gardens and waterfalls.
‘It is southern hospitality, and we are the Scenic City and it is beautiful,’ English said.
‘We have rivers, lakes, creeks and streams,’ she added. ‘We have the mountain, we’re on the southern part of the Cumberland Plateau, so we are just a naturally beautiful and blessed area because of our topography, so that means outdoor recreation.’
Along with its beautiful landscapes, the city offers an abundance of nature-centered activities like rock climbing, biking, hiking, and white-water rafting.
Chattanooga boasts a strong sense of community, with its lively downtown and revitalized riverfront serving as central hubs for local events and annual gatherings.
Among them are the city’s ‘Block Parties’ – free weekly music festivals typically held between Memorial Day and Labor Day that make Chattanooga ‘brimming with things to do,’ English explained.
The state has ‘done very well to make this very tax-friendly,’ English explained, as Tennessee ‘only has sales tax’ and does not impose state income taxes on its residents – another large factor in its increasing allure.
The cost-of-living is much lower to other parts of the country in comparison, which plays a key told in driving the soaring interest in the area as potential homebuyers are flocking to grab one of the 2,800 homes currently on the market.
In January, homes in Chattanooga sold for an average of $330,000, Fox Business reported. English, however, believes that the average will rise by 2-3 percent within the year.
In late January, however, the Fannie Mae Economic and Strategic Research Group predicted that mortgage rates will hit 6.5 percent by the end of this year and 6.3 percent by the end of 2026, Fox Business reported.
Chattanooga boasts a strong sense of community, with its lively downtown area serving as central hubs for local events and annual gatherings
The state has ‘done very well to make this very tax-friendly,’ English explained, as Tennessee ‘only has sales tax’ and does not impose state income taxes on its residents – another large factor in its increasing allure
Among the community gatherings are the city’s ‘Block Parties’ – free weekly music festivals typically held between Memorial Day and Labor Day that make Chattanooga ‘brimming with things to do’
English is confident that if ‘everybody starts to take the steps in the right direction’ and gets back out into the housing market, Chattanooga ‘will all see a lot of things happen that are going to be positive.’
That in itself, English explained, will prompt ‘a lot of things to happen that are going to be very positive and that also will help what we all wrestle with, which is affordability.’
Retirees are among those flocking to Chattanooga, drawn to its old-fashioned charm and what locals describe as living amongst ‘one big family.’
Former US Senator Bob Corker, who served as Chattanooga’s mayor and chose to return, referred to it as a ‘never-met-a-stranger community’, with loads of attractions.
Newcomers have been known to take up everything from meditation, mixology, or cake decorating as they enjoy the welcoming and tranquil atmosphere and proximity to larger cities like Atlanta.
The price of a Tennessee starter home was reported being $310,960 in 2024, with a monthly payment of $1,862 and a minimum required income of $74,478.
This article was originally published by a www.dailymail.co.uk . Read the Original article here. .