The Chattanooga real estate market continues to draw significant interest from homebuyers, investors, and developers. Thanks to its scenic beauty, affordable cost of living, and expanding job market, Chattanooga, Tennessee, remains a top destination for those seeking both residential and investment opportunities.
In this article, we’ll explore how hot the Chattanooga housing market is, what’s driving these trends, and what buyers, sellers, and investors can expect moving forward in 2025.
Chattanooga is somewhat competitive. On average, homes sell in about 49 days, reflecting a market that remains active but less intense than during previous boom years. In July 2025, the median listing price reached $388,000, reflecting a 2.7% increase year-over-year, while the median price per square foot held steady at $223. The median sale price for the same month was $378,000, resulting in a sale-to-list price ratio of approximately 97.7%—a sign that buyers are negotiating slightly below asking prices. Compared to the previous month, the sale price saw a 0.7% uptick, suggesting a market that remains active but measured.
Looking at broader trends, Chattanooga's home value growth has slowed to just 0.5% in 2025, marking a significant cooldown from the rapid appreciation seen in prior years. This deceleration is in line with national forecasts, which predict average home price growth of around 2.5% by year’s end.
Affordability is one of Chattanooga's strongest advantages. Compared to major metros like Atlanta, Nashville, or Charlotte, Chattanooga offers significantly lower home prices and a lower cost of living. This continues to draw interest from first-time buyers, remote workers, and retirees looking for value without sacrificing lifestyle.
With mortgage rates projected to fall to 6.5% by late 2025, buyer accessibility is expected to improve. Additionally, rising inventory is keeping upward pressure on prices in check, offering more choices and less bidding war stress for prospective buyers.
Chattanooga’s growing appeal is driven in part by domestic migration. The city is drawing residents from high-cost, high-density metro areas, especially those looking for a better quality of life and remote-friendly living.
Some residents are relocating to smaller or coastal markets, often for retirement or family reasons:
The Chattanooga real estate market in 2025 is shaped by a combination of economic development, population growth, and lifestyle appeal. While home price growth has slowed from its peak, the market remains active and resilient. Below are the key factors driving housing trends this year:
Chattanooga’s growing economy continues to be a major force behind its real estate momentum. The city has seen steady job growth, particularly in the tech, advanced manufacturing, logistics, and healthcare sectors. The city’s fast and reliable fiber-optic internet, among the fastest in the U.S., has made it an attractive base for startups and remote workers. As new jobs draw professionals to the area, the demand for housing continues to climb.
Affordability is one of Chattanooga’s standout advantages. With a median listing price of $388,000 as of mid-2025, Chattanooga remains more affordable than nearby metros like Nashville or Atlanta. This price point attracts a wide range of buyers, including first-time homeowners, retirees, and out-of-state transplants looking for more value.
After several years of low housing supply, Chattanooga is seeing a welcome increase in inventory in 2025. This has brought the market into a more balanced state, where buyers have more options and sellers face more realistic pricing expectations. Homes are staying on the market a bit longer averaging 49 days which reduces the pressure on buyers and allows for more thoughtful decision-making. The rise in available listings also helps moderate home price growth, making the market less volatile and more sustainable in the long term. For both buyers and sellers, this shift means a healthier and more predictable housing landscape.
Chattanooga continues to attract new residents from some of the most expensive cities in the U.S., including Los Angeles, New York, Seattle, and San Francisco. The ability to work remotely has enabled many individuals and families to relocate in search of more affordable housing and a better quality of life. Chattanooga’s small-city charm, outdoor amenities, and growing economy make it an ideal destination for these movers. As a result, demand for homes remains strong.
Beyond economics, Chattanooga’s lifestyle is a key factor driving its real estate appeal. The city is known for its scenic beauty, with the Tennessee River, Lookout Mountain, and hundreds of miles of hiking and biking trails just minutes from downtown. Chattanooga also boasts a vibrant arts and music scene, craft breweries, local eateries, and family-friendly attractions. Neighborhoods like NorthShore, Southside, and St. Elmo offer walkable communities with unique character and historic charm. For buyers looking to escape the stress of big-city living without sacrificing culture or connectivity, Chattanooga offers an exceptional mix of urban convenience and natural beauty.
Chattanooga’s 2025 real estate market offers a compelling mix of opportunity and stability. Affordability, job growth, and lifestyle appeal continue to draw diverse buyers and investors, positioning the city as one of the Southeast’s most promising mid-sized markets. The slowdown in price growth alongside rising inventory has created a more balanced and sustainable market ideal for strategic buying, selling, or investing.
If you’re considering selling your Chattanooga home, now is a great time to act. Trusted local cash buyers like Manuel Capital offer quick, hassle-free sales with no repairs needed and flexible closing timelines. Whether you want to avoid the traditional selling process or need to move fast, Manuel Capital provides a fair, no-obligation cash offer tailored to your needs. Reach out today to experience a transparent, efficient way to sell your home in Chattanooga’s dynamic 2025 market.
Andrew Manuel Writer
© 2023 Manuel Capital
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