Moving To Tennessee In 2024: Facts, Pros, Cons And Tips For Buying A House

Tennessee’s population has been growing fast in recent years. For instance, in 2022, the state population surged by 83,000 people – its biggest increase since 2007. Those moving to Tennessee from other states were the main factor in the growth, but roughly 8,000 new residents came from outside the country.

Experts largely credit the state’s four-season climate, small-town vibes and lenient tax policies for the uptick in population. That’s not to say that buying a house in Tennessee is right for everyone, though.

Understanding the best places to live in Tennessee along with the pros and cons of living in this state – all of which we’ll explore below – will help you decide if becoming a Tennessean is the right move for you.

Why Move To Tennessee?

The state of Tennessee is known for the Smoky Mountains, country music and a large variety of recreational and outdoor activities. Tennessee has a lot to offer, especially if you’re into live music or hitting the hiking trails.

Tennessee real estate can also be an excellent investment. The cost of homes for sale is about 20% below the national average. In the past, Tennessee real estate has shown a healthy return on investment for both homeowners and investors.

Pros And Cons Of Living In Tennessee

Every state has advantages and disadvantages you need to consider before deciding where to live. Generally speaking, Tennessee is a good place to live, and many of its residents enjoy an overall high quality of life. However, you’ll want to weigh the pros of moving there against the cons.

Below are some of the biggest pros of living in the Volunteer State.

No State Income Tax And Low Property Taxes

Many people choose to move to Tennessee because the state doesn’t charge any income taxes. This makes Tennessee one of the states with the lowest taxes. Instead of income taxes, the state charges a flat 1% – 2% tax rate on income earned from interest and dividends.

And, if you own a home, you’re going to have to pay property taxes every year. The amount you pay in property taxes depends on the cost of your home and the state you live in. Tennessee is ranked 15th for property tax rates – with 51 being the highest rate – among U.S. states and the District of Columbia.

Low Cost Of Living

Before you move to a new state, you’ll need to consider the cost of living – the amount of money you’ll need to cover basic expenses such as food, gas and housing costs.

If the cost of living is high, your money won’t go as far. According to the 2024 Cost of Living Index, Tennessee has the 10th-lowest cost of living among the 50 U.S. states and the District of Columbia.

Educational Quality

If you have children, you probably want to move to a state that provides excellent educational opportunities. Tennessee has a wide variety of high-quality public and private schools to choose from.

In particular, Merrol Hyde Magnet School is the top-ranking high school in the state. Students can take advanced placement coursework and the school does a good job preparing students for college.

Moderate Climate

Another benefit of living in Tennessee is its mild climate and beautiful weather. The mild year-round temperatures could lead to low utility costs in the winter.

Access To Nature

Tennessee is known for natural landmarks such as the Mississippi River and Lookout Mountain. The state is also home to national parks, including the popular Great Smoky Mountains National Park.

Entertainment And Recreation

Tennessee has a vibrant blues and country music scene. The state is also home to numerous festivals, entertainment options and restaurants.

Disadvantages To Consider Before Moving To Tennessee

Tennessee may seem like an ideal place to live, but it’s important to consider some of the downsides of moving there. That way, you’ll have a realistic picture of what living in Tennessee is like. Here are some potential negatives of living in Tennessee.

Tornadoes

Every state has weather-related challenges, and Tennessee residents have to deal with the occasional tornado. Tornadoes can cause serious damage to your home and the surrounding areas. And they often happen with no warning, so it’s hard to prepare for an oncoming tornado.

Traffic

Tennessee’s population is growing rapidly, and with that comes traffic issues. If you spend a lot of time in your car, this could be a problem for you.

High Sales Taxes

Tennessee’s state-level sales tax rate is 7%, tied for second highest in the nation. Its average combined state and local sales tax rate is the highest in the U.S. at 9.548%.

Nuclear Power Plants

Tennessee has two nuclear power plants, which can lead to certain environmental issues and health-related concerns.

High Crime Rates

Tennessee has the nation’s fourth-highest overall crime rate and ranks ninth for violent crime among the 50 states and the District of Columbia, though some cities and neighborhoods are safer than others. Memphis, Nashville and Chattanooga are among Tennessee’s most dangerous cities.

Where Is The Best Place To Live In Tennessee?

Tennessee is an incredibly diverse state, and each city has its own unique charm, landscape and character. From Knoxville near the Smokies to Memphis on the Mississippi River, Tennessee has many options from big cities to small towns. Many new residents opt for the major cities, which we’ll review next.

Nashville

Nashville – also known as Music City – is the capital of Tennessee. With nearly 678,000 residents, it’s also the largest city in the state. The city is home to legendary country music venues, such as the Grand Ole Opry. Health care and the auto industry are critical to the job market in Nashville and the rest of Middle Tennessee.

The city also boasts excellent restaurants, lively entertainment and a thriving nightlife scene. This may explain why the population continues to take off and just under 100 people move to Nashville each day.

You can find more information about Nashville here:

Nashville Real Estate Listings

Nashville Trend Report

Knoxville

Knoxville is located in East Tennessee and is home to the University of Tennessee. The city has a renovated downtown with lots of lively restaurants and bars. It’s also easy to get out of the city for a getaway to the beautiful Smoky Mountains.

You can find more information about Knoxville here:

Knoxville Real Estate Listings

Knoxville Trend Report

Chattanooga

Chattanooga is located in Southeastern Tennessee in the foothills of the Appalachian Mountains. It’s home to the University of Tennessee at Chattanooga and has a population of over 186,000 people. Chattanooga is a great place for an outdoor enthusiast, and it has twice been named the best place to live in the U.S. by Outside Magazine.

You can find more information about Chattanooga here:

Chattanooga Real Estate Listings

Chattanooga Trend Report

Memphis

Memphis is one of the best places to live in Tennessee, thanks to its large music scene and low cost of living. Graceland, the home of Elvis Presley, is located in Memphis. The National Civil Rights Museum is also here.

You can find more information about Memphis here:

Memphis Real Estate Listings

Memphis Trend Report

6 Key Tips For Buying A House In Tennessee

If you’re sold on becoming a Tennessean, here are some tips for buying a house.

1. Find A Trusted Tennessee Real Estate Agent

The first step is to find a real estate agent you trust and who’s familiar with the Tennessee market. They’ll be able to advise you on neighborhoods you might like, and they can help you determine how much you can expect to pay for a home. You might consider working with a Rocket Homes Verified Partner Agent.

2. Understand The Tennessee Housing Market

Along with asking for guidance from your real estate agent, it’s important to take some time to understand the Tennessee housing market. Home prices have recently been on the rise in Tennessee and, like many areas of the country, the state is a seller’s market. That means you’ll need to have a strategy for securing the best price on your new home.

3. Know Your Financing Options

Next, you’ll want to spend some time reviewing your financing options. Aside from a traditional bank loan, state-specific first-time home buyer grants and programs could be available. For example, the Tennessee Housing Development Agency offers loans for moderate to middle income first-time home buyers.

4. Review Your Tornado Insurance Coverage

Because tornadoes do occur in Tennessee, you’ll want to make sure your homeowners insurance policy covers tornadoes. Most policies will, but it’s important to check your specific policy to be sure you’re protected.

5. Buy When The Timing Is Right For You

It can take time to find the right home, so don’t try to rush the process. Wait until you find a home you’re happy with and that meets your budget and your family’s needs. If possible, start looking during the spring or summer months to increase your housing options.

6. Plan To Pay Lower-Than-Average Closing Costs

Anytime you buy a house, you’ll need to plan for closing costs, but they’re at least below the national average in Tennessee. Keep in mind that lower home prices can be a factor in these lower closing costs.

The Bottom Line: Moving To Tennessee Could Be A Good Idea

If you’re looking to relocate to a new state, Tennessee could be a good choice. Your money will go further thanks to the relatively low cost of living, relatively low property taxes and the absence of state income taxes.

If you’ve decided Tennessee is the place for you, get started today with a home loan from our friends at Rocket Mortgage^®.