If you’re looking for a great state to invest in multi-family real estate, Tennessee should be one of your first choices. Compared to the rest of the United States, the Southeastern states have weathered the COVID-19 pandemic fairly well, with many Southeastern metroes showing growth in population and increase in rent. In particular, Tennessee’s capital and largest city of Nashville is a hot spot for multi-family development in TN.
Multi-family real estate in Tennessee typically proves to be a more profitable investment than single-family homes. Because it costs less to invest in a multi-family property and because monthly rent can be accrued from multiple different tenants, multi-family developments such as apartments and condos tend to be an excellent source of income. There are several large cities in Tennessee that are premier locations for multi-family development and investment.
Best Cities For Multi-Family Development in TN
- Nashville – The capital city of Tennessee, Nashville has a population of over 715,000 in the city proper and 2 million in the metro area, making it one of the largest urban centers in the Southeastern United States. Commonly known as “Music City”, Nashville is a thriving hub of music while also serving as a major center for banking, healthcare and higher learning. Nashville has grown by over 100,000 people, more than 15% of its population, since 2010. The Nashville metro was ranked among the top ten real estate markets by the National Association of Realtors. With a steady influx of working professionals looking for urban and suburban housing, Nashville will continue to be the hottest spot for multi-family real estate in Tennessee for the foreseeable future.
- Chattanooga – Nicknamed “Scenic City” for its gorgeous location in the foothills of the Appalachian Mountains, Chattanooga is a steadily growing mid-sized city which saw an 8% population increase between 2010 and 2020. Due to its convenient location, it is also considered a transit hub for the Southeastern US. Projected to have a massive job growth of 44.5% over the next decade, Chattanooga is likely to see a large population expansion, making it a prime spot for multi-family development in Tennessee.
- Knoxville – The largest city in eastern Tennessee, Knoxville is positioned in the Great Appalachian Valley between the Great Smoky Mountains and the Cumberland Plateau. Knoxville is home to the University of Tennessee, which is attended by over 30,000 students, creating a consistent demand for multi-family housing rental. Knoxville is also a hub for finance, research and manufacturing with job growth projections of 37.5% over the next ten years, making the city a promising location for multi-family real estate development.
- Clarksville – A medium sized city in northern Tennessee near the Kentucky border, Clarksville is one of the fastest-growing cities in the state. Between 2010 and 2020, Clarksville experienced a population growth of over 25% due to a consistently strong job market. The city is also home to Fort Campbell, the region’s largest employer. Given its convenient location, ever-expanding population and growing job market, Clarksville is a great spot for multi-family real estate development and investment.
Invest in Multi-Family Real Estate in Tennessee
Catalyst Capital Partners strives to develop premium multi-family real estate in cities across Tennessee. If you would like to invest in multi-family development in TN, give Catalyst Capital Partners a call today!