Chattanooga’s Multifamily Boom: What It Means for You

If you’ve been paying attention to Chattanooga’s real estate landscape, you’ve probably noticed some big changes. Over the past five years, the Scenic City has seen significant growth in our multifamily housing market, with 5,900 new rental units added. That’s a 20% expansion of our existing apartment stock!

What’s Driving This Growth?

A key factor is demand for high-quality housing, with a 55% increase in premium rental options. While downtown Chattanooga has historically been the hub for new developments, we’re now seeing a shift in focus toward suburban areas such as East Brainerd, Hixson, and outlying Hamilton County. These suburban neighborhoods have collectively welcomed over 2,400 new units in recent years.

Chattanooga Projects Under Construction

PropertyUnitsSubmarketEstimated Completion
Ardmore At Vance246East BrainerdDec 2024
10623 Dayton Pike 60Soddy DaisyDec 2025
Hawthorne At Hixson60HixsonAug 2025
Shallowford Pointe96HixsonSep 2025
Riverside Apartments48HarrisonJan 2026

Developers are drawn to these suburban areas for several reasons:

  • Proximity to major employers: Amazon, Volkswagen, and other key companies along the I-75 corridor makes these neighborhoods ideal for commuters.
  • Top-rated schools: Families looking for quality education options are fueling demand in suburbs.
  • Shopping and lifestyle amenities: Suburbs offer easy access to retail centers, parks, and other conveniences that appeal to renters.

Meanwhile, in the urban core, developers are prioritizing mid-rise complexes. These projects, though smaller in scale, cater to professionals who value walkability, dining, and entertainment right at their doorstep. Unsurprisingly, apartments in these developments command higher rents, reflecting their prime locations and vibrant surroundings.

The Bigger Picture for Chattanooga

This multifamily housing boom speaks to Chattanooga’s strong local economy and growing appeal as a place to live and work. Investors and developers see our city as a rising star, offering both a vibrant urban center and suburban charm.

However, there are a few things to keep an eye on:

  • Construction costs: Rising material and labor expenses could impact the pace of development.
  • Potential oversupply: In certain submarkets, a surge in new units may outpace demand, leading to challenges for landlords and developers.

What This Means for Homebuyers, Renters, and Investors

  • For renters: Whether they’re looking for urban convenience or suburban comfort, the options have never been better. There’s something for everyone, from sleek downtown apartments to spacious units near top schools.
  • For homebuyers: New apartment developments could ease pressure on the housing market, providing alternatives for those still saving for a home.
  • For investors: Multifamily housing remains a hot opportunity, especially in areas near major employers and amenities.

Have Questions? Let’s Chat!

As Chattanooga continues to grow and evolve, navigating the local real estate market can feel overwhelming. Whether you’re thinking about buying, selling, renting, or investing, I’m here to help you understand how these trends might impact you.

Feel free to reach out! I’d love to discuss what these changes mean for your unique situation.

Bianca Pichardo
423-682-8241
Bianca.pichardo@svn.com

Back To Top