If the last few years have taught us anything about the housing market it is that it can be unpredictable. As we look ahead to 2023, there are many areas in Tennessee that homebuyers should consider for their housing needs. Whether it’s a first-time homebuyer or a seasoned investor looking for a stable return on investment, there are a number of thriving cities and towns offering promising housing markets for buyers.
What is a “Promising Housing Market?”
A promising housing market is defined as an area that offers potential buyers a great return on their investment. This could be through strong appreciation rates, low unemployment, and high demand for housing options. Some other strong indicators of a promising housing market are that, despite near-record high inflation, there should still be a steady rise in home values and low levels of inventory. While this may translate to a more difficult time finding a home in certain areas with high demand, it’s still a great opportunity for buyers to invest in their future.
Nashville, Tennessee
As one of the most popular cities in Tennessee, Nashville is a great option for both first-time homebuyers and those looking to invest in real estate. With its vibrant music scene, countless attractions, and ever-growing job market, Nashville offers an exciting lifestyle that is sure to please. Homebuyers will also be happy to know that the city has seen an impressive appreciation rate over the past few years, making it a great investment for those looking to build their portfolio.
Nashville’s popularity as a vacation destination has a bearing on the ability to ensure a reasonable return on investment. For these reasons, it is one of the most sought-after markets for not only homebuyers looking to settle down in Tennessee, but also for investors interested in breaking into the short-term rental market.
Memphis, Tennessee
Memphis is another popular city in Tennessee that has seen a steady rise in home values over the past few years. With its vibrant art and music scenes, low cost of living, and exciting nightlife, Memphis is an ideal spot for those looking to experience all that Tennessee has to offer. It is predicted that Memphis’ housing market will continue to see a steady incline over the next year, jumping 5.2% between July 2022 and July 2023.
There are a number of reasons why Memphis is an excellent area to consider investing in real estate, especially if you are looking to turn a profit as there are currently more renters than homeowners in the city. With a variety of housing options available and the current appreciation rate, Memphis is an ideal market for those looking to invest in their future.
Franklin, Tennessee
This quaint city located just south of Nashville is an ideal spot for those looking to settle down outside the hustle and bustle of the city center. Franklin offers many things that come with small-town living such as a charming downtown area with great restaurants, plenty of outdoor activities, excellent schools and an overall peaceful quality of life.
There are a number of factors that make Franklin an appealing place to buy a home. The median home price in Franklin is just over $300,000, which is more affordable than many other markets in the state. The city’s economy is strong and growing, with an unemployment rate that is below the national average.
Knoxville, Tennessee
Considered an undervalued real estate market, Knoxville offers great value for prospective homebuyers. With its growing job market, low cost of living, and thriving downtown area that has seen a recent renaissance in the past few years, Knoxville is an attractive option for those looking to settle down in Tennessee. Additionally, Knoxville’s real estate market is seeing steady increases in residential sales over the last and it is hailed as one of the best cities in the country to call home.
If you are considering purchasing a home in Knoxville, now might be the time to act. The projected growth between July 2022 and July 2023 is 6.2%, which is expected to make it one of the best markets for real estate investors in Tennessee.
Johnson City, Tennessee
Finally, Johnson City is another real estate market to watch in Tennessee. With its low cost of living (about 14% lower than the national average) and reasonable job market, Johnson City is an attractive option for both residential purchasers and investors. It’s also one of the safest cities in the state and has recently seen a surge in residential sales due to its relatively affordable housing prices. Combine these factors with the impressively low unemployment rate (3.4% in September of 2022), and Johnson City is an ideal market for those looking to gain a return on their real estate investments.
Overall, Tennessee has a lot to offer potential homebuyers and investors. Each city offers something unique yet all have seen great success in terms of home values over recent years. While we know from recent years that predictions are anything but guarantees, it’s safe to say that the housing market in Tennessee is looking as promising as ever. With its low cost of living, growing job opportunities, and vibrant culture, Tennessee is an ideal place to call home. Whether you are looking for a family home or an investment property, now might be the best time to invest in Tennessee’s real estate market.