12 Types Of Homes In Tennessee Likely To Increase In Value In The Coming Years

Looking to invest in Tennessee real estate? You’re making a smart move! The Volunteer State’s housing market continues to thrive with its affordable cost of living, no state income tax, and growing job opportunities.

I’ve researched the most promising property types that experts predict will see significant value increases in the coming years across Tennessee’s diverse landscape.

1. Sustainable Eco-Homes

Green living isn’t just a trend – it’s becoming a necessity for many homebuyers in Tennessee. Homes with solar panels, energy-efficient appliances, and sustainable building materials are commanding premium prices.

The state’s generous solar incentives make these properties particularly attractive. I’ve noticed that eco-conscious millennials are willing to pay 3-5% more for homes with green certifications.

Plus, with Tennessee’s abundant sunshine, solar-powered homes offer significant long-term utility savings!

2. Historic Urban Bungalows

Charm and character never go out of style! The classic Craftsman bungalows in neighborhoods like East Nashville and Memphis’ Cooper-Young district have become hot commodities for young professionals.

Their solid construction, architectural details, and walkable locations near trendy restaurants make them incredibly desirable. Many buyers are willing to take on renovation projects to own these pieces of Tennessee history.

The limited supply of these 1920s-1940s gems virtually guarantees their appreciation.

3. Lakefront Properties

Nothing beats waking up to stunning water views! Tennessee’s numerous lakes – including Norris, Dale Hollow, and the massive Kentucky Lake – offer prime real estate opportunities that consistently appreciate.

Waterfront homes provide both recreational value and rental income potential. The pandemic accelerated demand as people sought peaceful retreats with built-in activities.

Even during market downturns, these properties tend to hold their value better than inland alternatives, making them solid long-term investments.

4. Nashville Music Industry Adjacent Homes

Music City’s industry isn’t slowing down anytime soon! Properties near recording studios, music venues, and entertainment districts command premium prices from industry professionals and investors alike.

Areas like Berry Hill and the nations offer the perfect blend of creative energy and residential comfort. These neighborhoods continue to gentrify as Nashville’s entertainment economy expands.

The steady influx of musicians, producers, and industry executives creates reliable demand that outpaces many other parts of the state.

5. Mountain View Cabins

The majestic Smoky Mountains continue drawing tourists year-round, making nearby cabins excellent investments. Vacation rental platforms have transformed these properties into income-generating machines with impressive appreciation rates.

Towns like Gatlinburg, Pigeon Forge, and Sevierville offer the perfect blend of natural beauty and tourist attractions. Owners can enjoy personal use while generating substantial rental income during peak seasons.

The limited buildable land in these mountainous areas creates natural scarcity that drives up values.

6. Multi-Generational Family Homes

Family compounds are making a comeback! Homes designed for multiple generations – featuring separate entrances, in-law suites, or detached guest houses – are seeing increased demand across Tennessee.

Cultural shifts and economic realities have more families living together. These versatile properties offer solutions for aging parents, adult children, or income potential through short-term rentals.

Their flexibility makes them appealing to a wider range of buyers, potentially increasing future resale value beyond single-family alternatives.

7. Downtown Chattanooga Condos

Chattanooga has transformed from industrial center to tech hub and outdoor paradise! Downtown condos near the riverfront, Innovation District, and pedestrian bridge are attracting young professionals and empty nesters alike.

The city’s gigabit internet infrastructure has lured numerous tech companies. Residents enjoy walkability to restaurants, the Tennessee Aquarium, and outdoor activities while maintaining a lower cost of living than larger cities.

With continued economic development and limited downtown housing stock, these properties should see substantial appreciation.

8. Rural Properties With High-Speed Internet

Remote work has changed everything! Rural Tennessee properties with reliable high-speed internet connections have become golden opportunities for city escapees seeking more space and lower costs.

Counties that have invested in broadband infrastructure are seeing significant population growth. These homes offer the perfect blend of country living with connectivity for remote careers.

As more companies adopt permanent flexible work policies, the demand for these rural-yet-connected properties will likely continue driving values upward.

9. Healthcare Corridor Homes

Tennessee’s booming healthcare industry creates prime real estate opportunities! Homes near major medical centers in Nashville, Memphis, and Knoxville attract healthcare professionals seeking convenient commutes.

The healthcare sector provides recession-resistant employment that supports housing markets even during economic downturns. These neighborhoods often feature a mix of historic homes and new construction catering to medical professionals.

With healthcare consistently ranking as one of Tennessee’s largest employment sectors, proximity to these facilities adds lasting value.

10. Homes With Accessory Dwelling Units

Flexibility is king in today’s housing market! Properties with legal accessory dwelling units (ADUs) – like garage apartments, basement suites, or tiny houses – offer multiple income streams or living arrangements.

Many Tennessee municipalities have relaxed zoning to encourage these units as affordable housing solutions. They’re perfect for housing aging parents, generating rental income, or creating home offices and studios.

The additional space and income potential make these properties especially attractive to investors and multi-generational families, driving higher appreciation rates.

11. Walkable Suburban Communities

The best of both worlds awaits in Tennessee’s walkable suburban developments! Planned communities like Westhaven in Franklin and Harbor Town in Memphis offer neighborhood amenities with urban conveniences.

Residents enjoy walking to restaurants, shops, and community pools while maintaining the space and safety of suburban living. These neighborhoods typically feature quality construction, thoughtful design, and excellent schools.

Their limited supply and high demand from families seeking community-focused living virtually guarantees strong appreciation potential.

12. Homes With Dedicated Office Spaces

Work-from-home is here to stay! Tennessee properties featuring dedicated home offices, high-speed internet infrastructure, and zoom-worthy backgrounds are commanding premium prices.

The pandemic permanently shifted work patterns, with many companies adopting hybrid models. Buyers are willing to pay more for homes that accommodate professional work setups without sacrificing living space.

Features like sound insulation, separate entrances for clients, and natural lighting make these properties especially valuable in our new remote work reality.