Skyline reflecting on the river in Nashville, Tennessee

Moving To Tennessee In 2022: Facts, Pros And Cons, Plus Tips For Buying A House

Jamie Johnson5-Minute Read
February 16, 2022

In years past, many people didn’t have the option to relocate because they had to go into their 9 – 5 job every day. As remote work has become increasingly common, many people are exploring their options and relocating to different cities.

If you’re interested in buying a house in another state, Tennessee may be at the top of your list thanks to its beautiful scenery and thriving culture. This article will review the top things you need to know before moving to Tennessee.

Why Move To Tennessee?

Tennessee has a lot to offer — the weather is beautiful and the city is rich with culture. In particular, Tennessee is known for the Smoky Mountains, country music, and a large variety of recreation and outdoor activities.

 

Whether you’re into music or love hiking in the mountains, Tennessee has something to offer everyone. And Tennessee real estate can be an excellent investment. 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. You should carefully weigh the pros and cons of living in Tennessee, then make the decision that works best for you and your family.

Benefits Of Living In Tennessee

Fortunately, the benefits of living in Tennessee generally outweigh any downsides. Here are some of the biggest pros and cons of living in the Volunteer state.

No State Income Tax: 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, the state charges a flat 1% – 2% tax rate on income earned from interest and dividends.

Low Property Taxes: 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. Fortunately, Tennessee charges pretty reasonable property taxes.

Low Cost Of Living: Before you move to a new state, you need to consider the cost of living. The cost of living is the amount of money you’ll need to cover basic expenses like food, gas, and housing costs.

If the cost of living is high, your money won’t go as far. But according to the 2022 Cost of Living Index, Tennessee has the sixth-lowest cost of living.

Education: If you have kids, then 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 have the opportunity to 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 its natural landmarks like the Mississippi River and Lookout Mountain. Not to mention, the state is home to national parks like the Great Smoky Mountains.

Entertainment And Recreation: Tennessee is also well-known for its vibrant blues and country music scene. The state also hosts numerous festivals, entertainment options, and restaurants.

Cons To Consider Before Moving To Tennessee

Tennessee is a wonderful place to live and it may fit your idea of an ideal living location. However, it’s important to consider some of the cons of moving there. That way, you’ll have a realistic picture of what living in Tennessee is like.

Here are some potential downsides to living in Tennessee: 

Tornadoes: Every state has its 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.

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

High crime rates: The crime rate in Tennessee is higher than the national average, though some cities and neighborhoods are safer than others. In particular, Memphis, Nashville, and Chattanooga are three of the most dangerous cities in Tennessee.

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 in the Smokies to Memphis on the Mississippi, there are tons of great options to choose from.

Nashville

Skyline reflecting on the river in Nashville, Tennessee

Nashville is the capital of Tennessee and with just under 700,000 residents, it’s also the largest city in the state. The city is home to legendary country music venues, like the Grande Ole Opry.

The city also boasts a strong job market, excellent restaurants and entertainment, and an unbeatable nightlife. 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, Tennnessee

Knoxville is located in Eastern Tennessee and is home to the University of Tennessee. The city has a renovated downtown with tons of lively restaurants and bars. But 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, Tennessee

Chattanooga is located in Southeastern Tennessee in the foothills of the Appalachian Mountains. It is also home to the University of Tennessee at Chattanooga and has a population of 180,000 people. It’s 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 Tennesee

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. And the National Civil Right Museum is here as well.

You can find more information about Memphis here:

Memphis Real Estate Listings

Memphis Trend Report

Tips For Buying A House In Tennessee

If you’re sold on Tennessee as your ideal living spot, here are some tips for buying a house.

Find A Trusted Tennessee Real Estate Agent

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

Need a real estate agent?

Match with a local expert.

Understand The Tennessee Housing Market

Of course, you’ll ask for guidance from your real estate agent but it’s also important to take some time to understand the Tennessee housing market. Currently, housing prices are on the rise in Tennessee and like many areas of the country, it’s a seller’s market. That means you’ll need to have a strategy for securing the best price on your new home.

Know Your Financing Options

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

Review Your Tornado Insurance Coverage

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

Buy When The Timing Is Right For You

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

Plan To Pay Lower-Than-Average Closing Costs

Anytime you buy a house, you’ll have to plan for closing costs. Fortunately, closing costs are more affordable in Tennessee — according to a one study, closing costs in Tennessee are the second lowest in the country.

The Bottom Line: Is Moving To Tennessee A Good Idea?

If you’re looking to relocate to a new state, Tennessee is a wonderful place to live. Your money will go further thanks to the low cost of living, low property taxes, and lack of state income taxes.

If you’re still on the fence about where you’d like to move, be sure to take the Rocket HomesSM Interactive Home Buying Quiz to find homes that meet your needs and wants in an area that interests you.

Jamie Johnson

Jamie Johnson is a Kansas City-based freelance writer who writes about a variety of personal finance topics, including loans, building credit, and paying down debt. She currently writes for clients like the U.S. Chamber of Commerce, Business Insider, and Bankrate.