Business leaders predict the future of Chattanooga’s real estate market

Note: This story was updated on June 11 with a correct title for Linda Brock, as well as a revised quote that more accurately reflects her statement as provided to us.

When it comes to real estate, Chattanooga has reached a pivotal moment.

Several major multi-million-dollar projects are in the planning stages, including a new Lookouts baseball stadium, The Bend, and the possible relocation of the Tennessee Valley Authority Building. These developments have the potential to transform both the city’s physical landscape and its financial future.

While the city continues to struggle with housing shortages, Chattanooga is also attracting newcomers like never before. The list of reasons is long: the area’s natural beauty, year-round mild climate, lower cost of living, community-wide high-speed internet and abundance of shopping and cultural activities.

Looking ahead, experts say they predict a continued upward trajectory for the real estate market, fueled by ongoing urban development and the city’s strong appeal as a desirable place to work, live and play.

Dave DeVaney, NAI Charter

“We are at a critical crossroads in commercial real estate. There are several major projects that could have a long-term impact on the health and vibrancy of our city.

We have the old Wheland Foundry site where the Lookouts will be moving, and the enormous potential for office and retail hospitality there. We have The Bend, which could have an enormous impact.

Couple that with the potential of the Tennessee Valley Authority moving to a new regional headquarters on the periphery of downtown. My hope is that they raze the building, because that could be an important connector between downtown to Southside and Main Street district. That area could be completely reimagined.

We have the federal courthouse, too, that may be relocated. And we have the Moccasin Bend mental hospital and that piece of land. That area could become a state or national park, which would tie in with what Chattanooga is trying to be.”

Kadi Brown, The Group Real Estate Brokerage co-owner and Greater Chattanooga Realtors Association president

“I believe the Chattanooga real estate market will continue to be strong. Year over year, it keeps proving itself, pending any catastrophic event. We’re not as fast-paced as Clarksville and Knoxville; but with continued urban growth like The Bend, which will change the landscape, along with the corridor around the Lookouts stadium, we will continue growing.

We’ve got our suburban pockets that are feeling growing pains. Even with all the efforts to try to meet the demand for housing, we’re still in an inventory shortage in regards to the number of people choosing to call Chattanooga home.

Chattanooga has seen a lot of relocation growth, especially since COVID. But as long as we continue to add more industry, and Tennessee remains tax-free, I think we will continue to be a highly desirable place to move.

If we were seeing businesses moving away rather than in, and hadn’t seen strong growth year over year, there may be a different outlook. But with the projects that are slated here and even into Cleveland and Dalton, it’s just going to continue to spur growth.”

Linda Brock, Linda Brock Homes

“In 2019, someone from the newspaper asked me about the future of the market for homes over $1 million. In that year, we only closed 49 homes that were over a million dollars. I responded that the high-end market has always been the best value in Chattanooga and will only become stronger and grow. At the time, the reporter questioned my answer, as others shared the market had seen its peak and would level off.

And as they say, we know the rest of that story and the impact of COVID on all markets as “the real estate shuffle” began.  Now, with the dust having settled from COVID, low rates and the rush to buy a home in the lowest inventory in history, Chattanooga’s market continues to thrive and the local housing market here promises to be even brighter.

While all cities benefited during that time, no city benefited more than we did. What the rest of the country did not know — that we do — is that few cities are as scenic, affordable (yes, even housing), have no state income tax, and are convenient to more metropolitan cities than Chattanooga. We offer a more moderate year-round climate, incredible local dining, boutique shopping, and recreational and entertainment options — all without the traffic of larger cities.

What the real estate shuffle of 2020-2023 did for Chattanooga was not only introduce people to the city that offers everything — but it also woke up Chattanoogans who, maybe for the first time, realized they could no longer wait to buy up, scale down, build new or buy a second home. This, coupled with all the above, is why Chattanooga’s real estate market has never looked more promising.

We may not be closing as many transactions as we were during that moment in time, but we are still selling and closing more than ever before. It only makes sense to welcome newcomers from California, the Midwest and the Northeast who want to buy Chattanooga but keeping in mind if we don’t take advantage of our own real estate market, we may never have the opportunity.”

Piper Stromatt, Boutique Living by Curate Homes partner and owner

In a world where AI and automation are swiftly reshaping the landscape of work, Piper Stromatt offers a fresh dose of optimism for the human touch.

“I think we’re going to see technology play a massive role, but also genuine relationships take over as well,” says Stromatt, communications and marketing director for Curate Homes, a custom-design boutique home builder.

“I think person-to-person interactions will become more important, due to how much AI will be behind everything. The importance of networking will increase, as well as social media presence, affiliate marketing and storytelling through your brand.”

In her assessment of the local market, she foresees a shift towards more collaboration and less rivalry, in an effort to build a supportive business environment.

“I think we’re going to focus on how to keep Chattanooga local,” she says. “I think we will be seeing businesses come together more, talking about issues that arise that we can take on together.”

If local companies have a person or company that’s not an ideal client, they can cross-reference to find another local company that may be a better fit.

“I have a different attitude, a different approach to work. I am more about relationships than competition,” she says. “My core beliefs — family, trustworthiness, friendships, transparency — go into everything I do in life.”