Reasons to Buy a Home in Tennessee: 2025 Guide for Smart Homebuyers
Thinking about moving? You might be surprised by how many people are now buying homes in Tennessee. The Volunteer State is one of the most popular places to live in 2025, for good reason.
At Gustan Cho Associates, we work with families, investors, and first-time buyers every day who are relocating from high-tax states and looking for a better lifestyle. If you’re looking for a place where your money goes further, where nature and community come together, and where you can still buy an affordable home, Tennessee might be your perfect match.
Here are the top reasons to buy a home in Tennessee in 2025.
No State Income Taxes Make Tennessee a Top Pick for Homebuyers
Tennessee is one of just nine states in America with no state income tax. That means more money in your pocket every payday—and more you can put toward a home.
If you’re moving from New York, California, New Jersey, or Illinois, you’ll instantly notice the difference. Your take-home pay will be higher, and your monthly bills will be lower.
At Gustan Cho Associates, we help buyers who want to stretch their income and invest wisely by moving to Tennessee. Lower tax burdens make qualifying for a mortgage and a better home easier.
Affordable Housing: Home Prices Are Still Reasonable in 2025
Despite a nationwide increase in home prices, Tennessee remains a standout for affordable housing options. As of mid-2025, the median home price in the state is approximately $317,000. Cities like Knoxville, Chattanooga, and Memphis often feature homes priced below the national average, making them attractive locations for potential homeowners.
For many first-time buyers, securing a quality home is within reach, with some making down payments as low as 3%. This combination of affordability and investment potential is one of the reasons to buy a home in Tennessee.
Cost of Living in Tennessee Is Lower Than the National Average
In 2025, the cost of living in Tennessee is about 4% lower than the U.S. average. That includes:
- Lower food costs
- Affordable utilities
- Cheaper gas prices
- Lower property taxes compared to most states
When you combine all of this with low housing costs and no state income tax, you can live more comfortably on less money.
At Gustan Cho Associates, we help you calculate your monthly mortgage payments so you can feel confident you’re choosing a place you can afford long-term.
Booming Job Market and Strong Economy Support Homeownership
Tennessee’s economy is booming. The state has a strong job market in healthcare, tech, education, manufacturing, and tourism. Cities like Nashville, Franklin, and Chattanooga are experiencing job growth and higher wages.
As of 2025:
- Unemployment is below 3.6% statewide
- Tennessee has a $100+ billion GDP
- The average income for homeowners is over $87,000
A stable economy is one of the smartest reasons to buy a home in Tennessee now rather than wait.
Beautiful Nature and Outdoor Lifestyle Attract New Buyers
Tennessee is a nature lover’s paradise. Whether you want to hike in the Great Smoky Mountains, go fishing on Douglas Lake, or take a weekend drive through the Cherohala Skyway, there’s always something to do outdoors.
Many homebuyers relocating from cities choose Tennessee for its clean air, wide-open spaces, and relaxing pace of life.
Every week at Gustan Cho Associates, buyers tell us they fall in love with Tennessee’s scenery and decide to stay for good.
Family-Friendly Communities and Top-Rated Schools
Families are another big reason why people are buying homes in Tennessee. The state is known for:
- Friendly neighbors and small-town charm
- Top-rated public and private schools
- Safe, quiet neighborhoods
- Parks, playgrounds, and youth sports
Popular family-friendly areas include:
- Murfreesboro (close to Nashville)
- Germantown (near Memphis)
- Farragut (outside Knoxville)
These suburbs offer great school districts and a lower cost of living than major metro areas.
Low Property Taxes Help You Save More Long-Term
When considering the reasons to buy a home in Tennessee, one significant advantage is its low property tax rate. Homeowners in Tennessee pay an average of under 0.7% of their home’s value each year, making it one of the lowest in the nation. This stands in stark contrast to other states, such as Illinois, where property taxes are approximately 2.2%, New Jersey at 2.1%, and Texas at 1.8%.
This difference can add up to some big savings over the life of a mortgage. With lower taxes, owning a home in Tennessee becomes much more affordable, which makes it a great choice for those looking to buy. In the end, these financial perks are just one of the many reasons why buying a house in Tennessee can save you a lot over time.
Fast-Growing Real Estate Markets in Tennessee Are Investor-Friendly
Tennessee isn’t just great for families, it’s also a smart move for real estate investors. Cities like Nashville, Clarksville, and Johnson City have seen home values rise 7% to 12% in the last year.
Short-term rentals, fix-and-flip opportunities, and long-term rental investments are all growing.
At Gustan Cho Associates, we work with investors every day and offer Non-QM loan programs for buyers who don’t qualify for traditional mortgages.
Plenty of Entertainment, Events, and Things to Do Year-Round
Tennessee is a fun place with many entertainment options, so you’ll never get bored. Whether you’re looking for thrilling rides at Dollywood in Pigeon Forge or want to catch a show at the legendary Grand Ole Opry in Nashville, there’s something for everyone. Plus, Beale Street in Memphis has an awesome vibe that showcases the state’s rich music scene. And don’t forget about all the fairs, food festivals, and concerts happening throughout the year—it’s a non-stop party of culture and excitement!
You can experience a weekend getaway to the mountains or enjoy a performance in the city without having to leave the state.
This lifestyle is one of the top emotional reasons to buy a home in Tennessee in 2025.
Why Choose Gustan Cho Associates When Buying a Home in Tennessee
Buying a home is a big decision. Whether moving from out of state or buying your first home in Tennessee, Gustan Cho Associates can help you every step of the way.
Here’s what makes us different:
- No lender overlays on FHA, VA, USDA, and Conventional loans
- We approve buyers other lenders turn away
- Experts in Non-QM loans, investor loans, and bank statement mortgages
- Licensed in 50 states and the U.S. territories
If you’ve been denied before or just want the fastest way to get preapproved, we’re here to help.
Final Thoughts: Is Tennessee the Right Move for You?
Tennessee is an excellent place to buy a home, and there are a ton of reasons why. You won’t have to pay state income tax, housing is pretty affordable, there are great job opportunities, and the scenery is just stunning. And now, more than ever, people realize that the Volunteer State is more than a vacation spot. It’s a place to build a life.
If you’re ready to start your journey, the team at Gustan Cho Associates can help you buy your dream home in Tennessee.
Borrowers who need a five-star national mortgage company licensed in 50 states with no overlays and who are experts on the reasons to buy a home in Tennessee, please contact us at 800-900-8569, text us for a faster response, or email us at alex@gustancho.com.
We close loans other lenders can’t—even in Tennessee.
Frequently Asked Questions About the Reasons to Buy a Home in Tennessee:
Q: Why are There Many Reasons to Buy a Home in Tennessee?
A: Because Tennessee offers low taxes, affordable homes, good jobs, and a great quality of life, all the things buyers are looking for in 2025.
Q: Is No State Income Tax Really One of the Main Reasons to Buy a Home in Tennessee?
A: Yes. Tennessee is one of only nine states without a state income tax, which means more money stays in your pocket.
Q: Are Home Prices Still Good for Buying a Home in Tennessee in 2025?
A: Yes. Despite recent price increases, Tennessee homes are still cheaper than the national average in many cities.
Q: Does the Cost of Living Add to the Reasons to Buy a Home in Tennessee?
A: Absolutely. Tennessee’s overall cost of living is lower than most states, which helps you afford more house for your money.
Q: How Does the Job Market Fit Into the Reasons to Buy a Home in Tennessee?
A: The state’s strong job market in healthcare, tech, and manufacturing makes it easier to find stable work and buy a home.
Q: Are Outdoor Activities Part of the Reasons to Buy a Home in Tennessee?
A: Yes. With mountains, lakes, and parks, Tennessee offers year-round outdoor fun and a beautiful natural setting.
Q: Are Good Schools Among the Reasons to Buy a Home in Tennessee?
A: Definitely, many areas in Tennessee have highly rated public and private schools, which is great for families.
Q: Are Low Property Taxes Another Reason to Buy a Home in Tennessee?
A: Yes. Tennessee’s property taxes are much lower than in most states, helping homeowners save thousands over time.
Q: Can Investing be One of the Reasons to Buy a Home in Tennessee?
A: Yes. Fast-growing real estate markets make Tennessee a wise choice for rental properties and home value growth.
Q: How Can Gustan Cho Associates Help with All These Reasons to Buy a Home in Tennessee?
A: We make buying in Tennessee easier with no lender overlays, fast approvals, and loan programs for all types of buyers.
This article about “Best Reasons to Buy a Home in Tennessee This Year” was updated on August 8th, 2025.
