Tennessee’s housing market has seen immense growth in the last few years and it doesn’t show any signs of slowing down. As a real estate investor, the state of Tennessee is worth considering for your next investments.
There are a number of reasons why Tennessee has such a thriving housing market. The cost of living is relatively low and the strong job market constantly brings new people to the state. As a landlord, you won’t struggle to find top-quality tenants for your properties.
Why Are People Investing in Tennessee Real Estate?
Below, we’ve going to discuss the key reasons that make the Tennessee housing market so great and why you should consider investing in Tennessee real estate, whether you’re just getting into property investment or you’ve been doing it for years.
High Population of Renters
Over a third of the Tennessee population are renters so there is always a high demand for rental properties in the state. The average rent sits just under $1,500 a month so there’s a high passive income potential if you invest in several Tennessee properties.
Low Property Taxes
Tennessee has some of the lowest property taxes in the country and it sits far below the national average.
As a real estate investor in the state, you can enjoy maximum earning potential with limited expenses. The money that you save by paying fewer taxes can be used to improve your existing properties or used to widen your investment portfolio.
Rising Property Values
Tennessee properties have been increasing in value for the last five years at a rate of around 8%. However, property rates are still below the national average, making it the perfect state for new and existing real estate investors.
If you purchase Tennessee real estate in the near future, you can benefit from low purchase prices and high property appreciation rates to make money on your investment.
Future Job Growth
The future job growth in Tennessee is predicted to be around 41%, which is 8% higher than the national average. With the thriving job market, more people are moving to the state and they’ll need a place to live!
You can buy several properties in Tennessee and provide rental properties to those who are migrating to the area, or for locals who don’t want to or can’t afford to purchase their own properties.
Where Are the Best Places to Invest in Tennessee Real Estate?
As with any state, certain areas of Tennessee are more lucrative than others when it comes to real estate investments. Currently, the areas to consider as an investor are:
- Nashville, has a predicted property appreciation rate of 5.3% between 2022 and 2023
- Memphis, with the average home value, predicted to increase by 5.2% in the next year
- Knoxville, where homes are set to increase in value by 6.2% in the next 12 months
- Chattanooga, with a predicted property appreciation of 5.2% in the upcoming year
- Kingsport, which has a predicted home value increase of 3.3% between July 2022 and July 2023
- Jackson, where homes are set to increase by 5.4% in the next 12 months