Builders, real estate agents hopeful for VW housing boom

Chattanooga has a number of popular areas for sales of existing and new homes, but real estate experts say Volkswagen’s arrival means some neighborhoods will heat up even more.

“I can’t imagine a neighborhood that’s better positioned for Volkswagen than Hamilton on Hunter,” said Jay Bell of Bell Development Co. “We’re minutes away from the future plant.”

The subdivision, on Hunter Road in Ooltewah, has new homes starting at $165,000, Mr. Bell said. Belleau Ridge, another of his developments in Ooltewah, has prices starting at $245,000.

Greenville, S.C., residents learned with the arrival of BMW that Europeans like living in a villagelike setting, said Nickie Schwartzkopf, president of the Chattanooga Association of Realtors. They enjoy downtown settings with restaurants fronting the streets as well, she said.

Not all Volkswagen executives will buy a home, said Mrs. Schwartzkopf, a broker with ReMax Properties. Those involved with starting up the plant will lease, while those who are staying long-term may buy a home, she said. She has worked with a Volkswagen executive from England who requested to look at gated communities here in Chattanooga, she said, but it was to rent a home.

Hamilton County has a large housing stock near Volkswagen’s future plant in Tyner, said Teresa Groves, executive officer of the Home Builders Association of Southern Tennessee. Ooltewah, located nearby, is a logical choice with its growing commercial sector, which includes a Wal-Mart Supercenter, Cracker Barrel and Publix Super Market, she said.

The community will be even more convenient once the Interstate 75 widening and exit ramp work are completed, she said. Ooltewah, at Exit 11, is two miles from the unopened exit to the car factory.

Snow Hill, Harrison, Tyner and all other neighborhoods around Highway 58 and Bonny Oaks Drive will grow, said Byron Kelly, a broker with Prudential RealtyCenter.

“Those areas have a good, affordable housing stock dating from the 1950s and 1960s which are well-built,” he said. “Some of them weren’t the most trendy places to live during the late 1990s and in this decade, but now people are rediscovering those areas’ value.”

Barry Payne, one of the developers of The Arbors subdivision, said his site is less than a mile from Enterprise South. The neighborhood, near Bess T. Shepherd Elementary School in Tyner, has prices starting at $190,000.

Although Volkswagen will be built in the eastern part of the county, other areas will benefit too, said Tim McClure, president of the home builders association and a builder in Soddy-Daisy.

“Not everyone is going to want to live right at the plant,” he said. “Soddy-Daisy has cheaper land and is less congested. And the community is connected to the rest of Chattanooga by U.S. Highway 27.”

Photo by Jason Reynolds

Homes in Hamilton on Hunter North in Ooltewah start at $165,000.

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