Tennessee

The median value of owner-occupied housing units in Tennessee was more than 22 percent lower than the national figure in 2000, according to the US Census Bureau, but median household incomes in Tennessee were only 10 percent lower than the national figure. In other words, residential housing in Tennessee is very affordable. This is confirmed by the homeownership rate in Tennessee, which is nearly 70 percent compared with a national average of just over 66 percent. Strong New Housing MarketWith over 34,000 housing permits issued in 2002, the residential housing market in Tennessee has been experiencing a major boom. The market for multi-unit housing is smaller than average in Tennessee, yet there are over 470,000 such units in the state. The outlook for residential construction in Tennessee is strong, but rental property returns may be less attractive due to lower demand for apartment living.Tennessee has a thriving tourism industry. Fans from all over the globe flock to the famous music industry attractions in Memphis and Nashville. For those who love the outdoors, there are the Smokey and Appalachian mountains, the Tennessee and Mississippi rivers, and all the usual outdoor activities such as hunting, fishing and horseback riding. Tourism-related real estate is available across the state, including vacation homes, condominiums, bed and breakfasts, hotels and motels.Industrial real estate opportunities exist in Tennessee's manufacturing sector. Although the number of manufacturing jobs has declined, industrial output is a major contributor to the Tennessee economy. High per capita retail sales reflect the robust markets for commercial and retail real estate.