Top Reasons Why You Should Invest in Tennessee Real Estate

According to the most recent Tennessee migration statistics, Californians constitute nearly a quarter of all search queries for relocation to Tennessee. Florida, Texas, Illinois, and Colorado make up the next four largest contributors.
Tennessee has increased an impressive amount of growth in its population over the last few years, making real estate the strongest investment avenue to consider.

Find out why more people are relocating to Tennessee than any other state and why Tennessee is a perfect location for real estate investing today.

REASON #1: AFFORDABILITY AND LOW COST OF LIVING

Affordability is always a huge factor in why most people typically choose not to reside in some of the most popular locations around. Good thing, Tennessee is such a beautiful state yet still on the affordable side in terms of property costs and lifestyle.

The Cost of Living Index survey even shows that Tennessee ranks as the sixth-lowest cost-of-living state in the United States due to lower than the national average in key indicators like groceries, housing, transportation, and healthcare.

Having said that, the increase in individuals moving to Tennessee causes a huge rise in the demand for housing or rental properties. This draws real estate investors to invest in Tennessee as affordable properties enable them to optimize their returns while maintaining minimal costs. Simply put, investing in Tennessee is definitely more lucrative than doing so in most other states.

REASON #2: BOOMING ECONOMY / BUSINESS-FRIENDLY

In a recent CNBC analysis, Tennessee ranks as the sixth greatest state in the nation for conducting businesses, which makes it evident why so many businesses are already utilizing the state’s considerable tax breaks and grants.

Strong networks of hospitals and healthcare facilities are also becoming prominent because of the great healthcare system available.

Tennessee had also been thriving in its economy being the home to eleven Fortune 500 companies and growing, where manufacturing, energy, film production, and healthcare are among the state’s most dynamic industries.

As a result, the number of jobs in the state increases significantly, which eventually draws more people to relocate. This ultimately benefits real estate investors. With new residents moving in daily, the need for rental properties becomes highly notable.

REASON #3: LOW TAX BURDEN

Tennessee is unique when it comes to tax laws. Although local taxes can be set and collected, it boasts that there are no state income taxes, and a number of tax advantages are available to startups and growing companies. Tennessee’s property tax rate is also one of the lowest as compared to most other states in the US, making it nearly half of what the average American is required to pay for taxes.

Many retirees also choose Tennessee because of its healthcare and other benefits. One of them is the fact that Social Security retirement payments are earned without paying any taxes either. Tennessee’s low tax burden clearly makes it a winner for residents and real estate investors.

REASON #4: LOW UNEMPLOYMENT RATE

An affordable state does not necessarily indicate a strong economy. In reality, research indicates that many of the states with the lowest cost of living experience problems with high unemployment, and a lack of economic development. Tennessee, fortunately, is the other way around.

Tennessee has recently been chosen to be the home of a few large corporations, citing the state’s skilled workforce. Since Tennessee’s unemployment rate is now lower than the national average, more people are encouraged to relocate there and benefit from this opportunity. In return, the demand for real estate inevitably gains more traction and increases the chance of success for its property investors.

REASON #5: NATURAL BEAUTY & RECREATION

Tennessee is undeniably a beautiful state. There is no shortage of natural beauty in this region, which is bordered on three sides by the Appalachian Mountains, the Mississippi River, and lush national parks and forests. You can anticipate enjoying these scenic wonders if you’re moving to Tennessee.

The Volunteer State is indeed perfect for anyone who enjoys nature or is looking for recreational activities. State parks, community gardens, and conservation areas add up to supporting the resident’s physical and emotional health. This encourages more people to realize a shift in their cycle and relocate to a place that is totally spectacular, like Tennessee.

REASON #6: CONSISTENT VALUE APPRECIATION

Over the past year, property values in Tennessee have increased by 26.1% which shows that investing in Tennessee real estate will undoubtedly pay off. According to Neighborhoodscout, the appreciation rate for its real estate properties in the past year (2021 Q1 – 2022 Q1) was among the highest in the nation as the median price increased by 25.15%.

Value appreciation is important in real estate as it offers incredible possibilities for investors who wish to diversify their rental portfolios and predict excellent investment returns. With the state having a historical and consistent increase in its property values, investing in Tennessee is undeniably a safe and fruitful environment, especially for real estate investors.