Tennessee real estate is attracting lots of overseas investors every year. It has a low rate of property taxes and continually rising home values. The state has excellent retirement and healthcare systems, providing more benefits and opportunities to real estate investors. Plus, did you know that Tennessee is one of the most affordable states in the United States to live in? Bid on Tennessee Land Auctions Online!
If you have ever considered investing in Tennessee real estate, this guide is for you.
Today we will answer all your questions like why should you invest in the state, what distinguishes Tennessee real estate from the rest of the country, and what are the best places to invest in Tennessee. Let’s get started.
Tennessee Real Estate Investing Market Overview
- During the last decade, Tennessee’s population has grown at an annual pace of 0.74 percent on average. However, during that same period, the national average rate was 0.69 percent.
- Tennessee experienced a 6.67 percent overall population growth rate during that time period, compared to a national growth rate of 6.23 percent.
- Regarding property market values in Tennessee, the current median home value is $158,600. The figure for the entire country is $204,900.
- The annual growth rate for homes in Tennessee during the last ten years averaged 0.27 percent. The yearly house appreciation rate in the United States averaged 0.13 percent.
- Tennessee’s gross median rent is $841, compared to a national median of $1,023.
7 Main Reasons to Invest in Land in Tennessee Real Estate
Tennessee has always been popular for its stunning scenery. Also, it provides an excellent opportunity to learn about southern cultures and cuisine.
But why should you put your money into their property? Let’s have a look.
1) Low Property Taxes
Property taxes in Tennessee are among the lowest in the United States. In fact, it’s nearly half of what the typical citizen must pay in the United States.
According to numbers, homeowners in Tennessee pay about $1220 in property taxes each year, which is significantly lower than property taxes in most other states in the US.
2) Home Values Consistently Rising
Tennessee’s housing values have been steadily increasing by more than 8%, especially since 2017.
However, when compared to the national average, the state’s median home value remains low.
So, if you’re looking to expand your rental property, this is a wonderful investment spot.
Furthermore, the state is witnessing a gradual appreciation, indicating that there are many possible investment opportunities out there.
In short, if you invest now, you might obtain a better return in 10-20 years.
3) Great Retirement Facilities
Tennessee attracts a large number of retirees due to its tax-friendly environment. Retirees from several other states go to Tennessee to take advantage of these benefits.
Furthermore, the retirement payments earned through Social Security do not necessitate any taxation, and it is a true win-win situation for investors.
4) Top-Notch Healthcare System
When it comes to healthcare, Tennessee boasts a large number of hospitals. As a result, it is more appealing to families wishing to relocate.
For example, hundreds of enterprises in the region are connected to healthcare. It has also been estimated that their healthcare contributes roughly $30 billion to their GDP. Nashville has even been rated one of Tennessee’s best residential real estate investment cities.
5) Lots of Foreign Investors
Another interesting aspect of Tennessee real estate is the increase in international investment. Over 900 international companies have made investments in its real estate and have put more than $30 billion into real estate properties.
It’s also worth noting that Tennessee’s FDI is fuelled by two of the most well-known car firms, i.e., Volkswagen and Nissan. Furthermore, the state is home to hundreds of other foreign-owned automakers.
Plus, there are several well-known overseas corporations with offices in Tennessee, such as Hankook Tire, Bridgestone, etc.
6) Population Growth
Nashville and its neighboring suburban counties are witnessing an unprecedented population growth, with the metro area ranking as the 20th fastest expanding MSA in the United States.
According to the most recent census, Nashville’s population has grown by 15% since 2010, while Rutherford, Trousdale, and Williamson counties have all had a population growth of more than 30%.
7) Economy and Employment
Nashville is the fastest-growing metropolis in the United States. In fact, nothing, not even a pandemic, could hold Nashville down for long.
The number of job openings continues to rise, owing to strong in-migration and business expansions and relocations. According to the Bureau of Labor Statistics, unemployment has dropped to just 2.8 percent as of October 2021, with the fastest-growing job sectors being information, financial activities, professional and commercial services, and leisure and hospitality.
Now, let’s look at some of the best real estate markets in Tennessee-
Top Real Estate Markets to Invest in Land in Tennessee
While most cities in Tennessee are worth exploring, a few stand out. Therefore, we’ve compiled a list of three of the best markets for your convenience. Here we go-
Nashville is one of Tennessee’s most popular cities and is a fantastic area to invest in real estate.
Nashville has to be at the top of the list because it is a well-known tourist attraction. According to stats, the returns from Air-Bnbs were the highest in Tennessee. You can always buy a fixer-upper and turn it into a profit!
Chattanooga is a small town nestled in the foothills of the Appalachian Mountains. The mountains are undoubtedly one of its most appealing features, but the Tennessee River is also a major tourist attraction.
Also, it is home to some of the best colleges in the world. As a result, the number of students and families visiting this small village has increased recently.
However, because it is still developing, the houses are still inexpensive. So, if you’re searching for a cheap place to invest in Tennessee, consider Chattanooga.
Murfreesboro is a Tennessee city that is very near to Nashville and has a population of around 100,000 people.
The rent prices are rising in the area with the number of available rentals, making it an excellent location for real estate investment.