Tennessee Real Estate: What You Need to Know

If you're thinking about moving to the South, Tennessee should be on your radar. The state offers a mix of city buzz, mountain views, and a cost of living that's kinder to your wallet than many coastal areas. Plus, the job market is growing, especially in tech and healthcare, so more people are looking for a place to call home.

Current Market Snapshot

In 2025 the median home price in Tennessee sits around $300,000, which is still below the national average. Cities like Nashville and Knoxville see faster price climbs, but smaller towns such as Franklin and Murfreesboro keep things affordable. Rental rates have risen about 4% year‑over‑year, but you can still find a two‑bedroom for under $1,200 in many neighborhoods.

Tips for Buying or Renting

First, decide whether you want a city lifestyle or a quieter suburb. Urban areas have better public transit and entertainment, while rural spots give you land and lower taxes. Second, get pre‑approved for a mortgage before you start house hunting – sellers respect buyers who know their budget. Third, work with a local real‑estate agent who understands the Tennessee market; they can flag hidden costs like property tax rates that vary by county.

If you’re renting, ask the landlord about utility responsibilities and any rent‑increase caps. Tennessee doesn’t have statewide rent control, but many cities set notice periods for hikes. Look for lease terms that let you break the agreement without huge penalties if your job moves you elsewhere.

Financing in Tennessee is straightforward, but keep an eye on down‑payment assistance programs. The state offers grants for first‑time buyers, especially for those purchasing in designated growth zones. These programs can shave thousands off your upfront costs and make homeownership more realistic.

When you narrow down neighborhoods, walk the streets at different times of day. Notice traffic patterns, school proximity, and nearby amenities like grocery stores or parks. A short drive to a major highway might be a plus for commuters, while families often prioritize good schools and low crime rates.

Finally, think long term. Tennessee’s property values have shown steady growth, and the state’s economy is diversifying. Whether you’re buying a starter home, an investment property, or just renting for flexibility, the key is to stay informed about market shifts and be ready to act when a good deal appears.