Chattanooga is located in the south-east portion of Tennessee. It is the 4th largest city in the state. Named Gig-City, Chattanooga has worked to advance itself technologically. With its beautiful rivers, lakes, trails, and a great downtown scene, Chattanooga has something to offer all its residents.
This market is a unicorn in the investment world. Almost any strategy you can think of will work here. This is great for investors who are interested in pursuing multiple strategies. You only have to learn one market and get the benefits all these strategies have to offer.
The market in Chattanooga offers the best of both worlds: cash flow and appreciation. Being a mixture you aren’t going to see the highest rates of appreciation or the highest amount of cash flow. But we think the combination of these powerful factors makes a great long term investment.
What makes Chattanooga such a great market for investing? Its Key Market Metrics.
The population is growing, meaning more people are looking for houses. Tennessee has no state income tax meaning people who work remotely can benefit greatly by moving here.
The sales price is still affordable in comparison to most of the US. Home prices have been rising quickly over the last few years. They aren’t slowing down yet as people continue to move to the area.
Rent has kept pace with rising home prices, although it follows behind by a few months. This makes cash flow possible even as sales price increases.
Major employers in the area are in the manufacturing and health care sectors. Chattanooga has done a great job at positioning itself to be attractive for large businesses. They continue to move into the area; bringing jobs, new employees, and helping encourage the local economy.