Chattanooga vs. Manchester, TN:
Hello everyone!
I'm considering investments in Chattanooga and Manchester, TN. Both options have similar price, cash flow, and ROI.
I'm wondering which market is stronger and would be a better long term investment in term of appreciation potential and vacancy rates.
Thanks!
Ari.
Hi Arie! Both are solid markets in a landlord friendly state, so I think either is likely a good choice.
I'd recommend looking at the area Realtor Association market statistics to get an idea of appreciation to date and other data. Here's the Chattanooga link: https://www.gcar.net/consumer-tools/market-statistics/.
As an investor and agent in Chattanooga, I characterize it as a good hybrid market that has appreciation and cashflow. It is the 4th largest city in TN, so you're getting a much larger metro area versus Manchester. It has had notable population growth for the last few years, and has a housing shortage that would suggest continued appreciation and low vacancy!
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Real Estate Agent Georgia (#409775), Virginia (#225236143), and TN (#358836)
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Both areas are gorgeous and wonderful landscape for outdoor activities. I would have to say that Chattanooga is probably a little higher on the list.
There is a beautiful downtown area that is right on the river and growing tremendously. The Housing market, especially for investors is a prime location and prices are still at a reasonable rate. As well as you have closer access to the North Georgia area, which has really seen tremendous growth in the past few years.
Hi Arie! I would agree with the other posters. Chattanooga is a growing city and desirable place to live and rent. It is also not too far from Atlanta, a huge airport hub. I have several investor clients who are investing in Chattanooga and have had a lot of success! Manchester is also a great town, and if the numbers work then the numbers work. That has just been my experience! Good luck!
Hi Arie!
I would agree with the other posters as well. I think there are great opportunities in both.
Full disclosure, I invest in Chattanooga TN personally, so I have a small bias toward Chattanooga in this comparison. I thing draw of Chattanooga is that it sits nearly in the middle of Atlanta and Nashville - both metros have MSAs that continue to expand. What drew me to Chattanooga personally was the price-to-rent ratio and the cashflow opportunities. There is so much growth happening in Chattanooga and a variety of industry to support it. If you want to talk further about the market, please send me a DM. I LOVE this market.
@Arie Sharon I grew up between Chattanooga and Manchester. I'd vote for Chattanooga before Manchester for appreciation. Manchester is too far from Nashville to really be a suburb. It's more of a stop over, mid-sized town with a more vulnerable economy than Chattanooga.
Murfreesboro and Chattanooga would be more similar as far as attractiveness.
Like others have stated, I believe Chattanooga will be the better investment in the long-term. Chattanooga is right in the middle of Nashville and Atlanta, and has a strong economy and vibrant downtown.
That said, I know many homebuilders who are buying land and building like crazy in Manchester, so I don't think that is a bad option either. Many folks that work in Murfreesboro have been moving to Manchester due to lower home prices, so if we see softer housing prices anytime in the coming years, that could impact Manchester more as people who'd rather live in Murfreesboro move back.