Tennessee has become an increasingly popular destination for individuals and families looking for a fresh start.
The state is rich in history, music and natural beauty. This market also offers affordable housing and numerous job opportunities.
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However, Tennessee isn’t for everyone. In this guide, we’ll break down the pros and cons of the “Volunteer State” so you know what to expect before moving.
Pros of moving to Tennessee
What makes Tennessee so appealing to new residents?
In this section, we’ll explain why Tennessee may be the perfect place to call home, including tax benefits and job opportunities.
1. Keep more of your money: No state income tax and affordable living
Compared to many other states, Tennessee has a lower cost of living, with relatively affordable home prices and more manageable everyday expenses.
According to Redfin, Tennessee’s median home sale price is $381,200, compared to the national median sale price of $425,061.
The cost of living is about 10% lower than the national average.
One of the biggest perks of living in Tennessee is the absence of a state income tax, which allows residents to keep a larger portion of their paychecks.
2. Strong job market and business-friendly environment
Tennessee has a diverse job market and steady economic growth.
Healthcare, technology, manufacturing, agriculture and tourism dominate the state, and cities like Nashville, Knoxville and Chattanooga are hotspots for innovation and job creation.
The state unemployment rate is 3.7%, ranking at No. 24 of 51 on the U.S. Bureau of Labor Statistics Unemployment Rates for States list. Tennessee’s rate is also lower than the national rate of 4.1%.
Tennessee counties with the lowest unemployment rates include:
- Williamson (2.8%)
- Rutherford (3.0%)
- Macon (3.0%)
In total, 82 of Tennessee’s 95 counties report unemployment rates below 5%.
3. Enjoy the outdoors year-round with a mild climate and stunning scenery
Tennessee’s natural beauty and warmer climate are a major draw for residents who love the outdoors. While the state does experience four seasons, winters tend to be much milder, with only occasional snowfall.
Tennessee’s most popular natural attractions include the Great Smoky Mountains National Park, Fall Creek Falls State Park and Cumberland Gap National Historical Park.
There is an endless supply of outdoor activities thanks to the many lakes, rivers and hiking trails.
4. Rich culture and entertainment scene
Tennessee is an exciting place to live for people of all ages, particularly those interested in music, sports or history.
Nashville, Tennessee’s capital, is known as “Music City” because of its rich musical history. Memphis also played a significant role in the emergence of blues, soul and rock ‘n’ roll music.
Meanwhile, Tennessee’s cuisine is rooted in Southern tradition, including barbecue and comfort food dishes.
5. Tennessee’s real estate market is a smart investment
Despite rising home prices, Tennessee housing remains more affordable than many major metropolitan areas nationwide.
Even in its largest cities, home prices are still relatively accessible for many homebuyers, with suburban and rural areas providing even greater value.
Tennessee’s market is particularly great for:
- First-time homebuyers
- Growing families
- Young professionals
- Retirees
- Real estate investors
The state also has lower property taxes than surrounding states, which helps reduce the long-term costs of homeownership.
An experienced mortgage lender like Compass Mortgage can help Tennessee homebuyers find a loan option that suits their budget and goals.
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Cons of moving to Tennessee
Tennessee has plenty to offer its residents, but that doesn’t mean the state is right for everyone.
Let’s look at the potential downsides of moving to Tennessee, depending on your goals and interests.
1. You’ll pay more at checkout with a high sales tax
While the state benefits from no income tax, residents must contend with a high sales tax.
For many residents, no income tax and an overall lower cost of living may compensate for the sales tax, but those living on fixed incomes may find the higher sales taxes have a greater impact on their budgets.
2. You may have to deal with extreme weather in exchange for mild winters
Depending on where you live in Tennessee, you may face weather risks like high heat, severe storms or flooding.
West Tennessee is the warmest region of the state and is more susceptible to tornadoes and flooding, while East Tennessee’s higher elevation offers cooler temperatures and more precipitation.
Overall, Tennessee experiences hot, humid summers and mild winters. However, if you’re not a fan of the heat and humidity or are moving from a cooler climate, you may not enjoy Tennessee’s weather.
3. Nature’s downsides: Seasonal allergies and pesky insects
Hot, humid weather and long growing seasons result in high pollen levels and a range of pesky insects, including mosquitoes, ticks, chiggers and termites.
Memphis, Tennessee, is number 5 on the Asthma and Allergy Foundation of America’s (AAFA) list of the top 10 most challenging places to live because of seasonal allergies which affect southwestern Tennessee.
The AAFA list evaluates tree, grass and weed pollen scores throughout the year, as well as the use of allergy medications.
High-efficiency air filters and pest control treatments can help, but Tennessee may not be right for you if you have a strong aversion to bugs or severe allergies.
4. Population growth has led to traffic and infrastructure issues
The state’s surge in population growth over the past several years has created growing traffic congestion and infrastructure challenges, particularly in cities like Nashville and Memphis.
Existing roads and bridges weren’t initially built to support today’s population levels, and many need major upgrades.
5. Those hoping to rely on public transport will face challenges
In addition to traffic and infrastructure issues, Tennessee residents have minimal public transportation options outside major cities. Even within major cities, there have been ongoing hurdles related to availability.
These issues may not be a problem for those used to commuting, but those who prefer walkable communities or rely on public transit may be frustrated.
Is Tennessee the right move for you?
Tennessee’s affordability, job opportunities and natural beauty make it a great place to live.
However, factors like high sales tax and hot, humid summer weather should be considered before relocating.
Compass Mortgage can help you find the right financing options if you’re ready to make this move to the South.
Apply now to start your Tennessee homebuying journey and unlock your personalized loan options!