Chattanooga Housing Market Analysis

From: HUD USER News
 
HUD USER has posted a Comprehensive Housing Market
Analysis report for the Chattanooga, Tennessee-Georgia
housing market area (HMA). Coterminous with the
Chattanooga, Tennessee-Georgia Metropolitan Statistical
area, the HMA contains Hamilton, Marion, and Sequatchie
Counties in southern Tennessee and Catoosa, Dade, and
Walker Counties in northwest Georgia.
 
The regional economy is largely based on the government,
trade, manufacturing, and the education and health
services sectors. Nonfarm employment has been slow,
increasing at 0.4 percent a year since 2000. A new $1
billion Volkswagen Group of America, Inc. assembly plant,
however, scheduled to be completed in 2011, is expected
to increase employment in this sector by an average of
1.5 percent annually between January 1, 2009 and January
1, 2012.
 
Housing sales in the HMA are currently weak, with an
excess inventory of unsold homes. During 2008, the median
price of a new home fell by 9 percent (from $145,200 to
$131,900), while the median sales price of an existing
home increased by 5 percent (from $130,000 to $136,600).
Rentals are also weak, with a vacancy rate of 8 percent.
 
Compiled by field economists in HUD's Office of Policy
Development and Research, this report presents economic,
demographic, and housing inventory data that are useful
in foreseeing changes in the housing market. Our analysis
describes the Chattanooga, Tennessee-Georgia HMA from
1990 to 2000 and from 2000 through 2008, and projects
anticipated market activity during the three-year period
from January 1, 2009 to January 1, 2012.
 
As with previous CHMA reports examining housing market
areas across the nation, this analysis is available
at www.huduser.gov/portal/publications/econdev/mkt_analysis.html
and can be downloaded at no cost.
 
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HUD USER
P.O. Box 23268
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1-800-245-2691
1-800-927-7589 (TDD)
202-708-9981 (fax)
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