Interesting video on Tennessee housing market. (Chattanooga, Clarksville: sales, foreclosures, loan)

[Wartrace]

https://www.youtube.com/watch?v=B3h6...hannel=RJTalks

If you are thinking about buying a house in Tennessee you might want to watch this video.

[Jumeby]

Its looking like buying a house or investment property pretty much anywhere is currently bad timing not to mention the onslaught of foreclosures and loan defaults we will probably see going forward. Cheap money for way too long.

[shinestx]

This state has just gotten too crowded for the infrastructure. TDOT is miserably ineffective in addressing the growth.

[Serious Conversation]

I live in Bristol and my home’s value has exploded by 50% since I bought it in 2019. You’re seeing these kind of run-ups all over the place. For years, Tennessee was regarded as a low cost state. Other than no state income tax, that advantage is largely gone, unless you’re comparing it to the coasts or large metros.

What I find odd about the whole situation is wages at the bottom and the top are going up. The bottom can’t afford a house anyway, and the top never had a problem. It’s that middle 60% or so of wage earners where wages aren’t going up as much and who are being pummeled by the higher interest rates and prices - those people are basically locked out of this market.

Even if I sold, where do I go? I’m going to be use all the equity from my current home to buy a higher priced something else at a higher rate.

[Jumeby]

Originally Posted by Serious Conversation

I live in Bristol and my home’s value has exploded by 50% since I bought it in 2019. You’re seeing these kind of run-ups all over the place. For years, Tennessee was regarded as a low cost state. Other than no state income tax, that advantage is largely gone, unless you’re comparing it to the coasts or large metros.

What I find odd about the whole situation is wages at the bottom and the top are going up. The bottom can’t afford a house anyway, and the top never had a problem. It’s that middle 60% or so of wage earners where wages aren’t going up as much and who are being pummeled by the higher interest rates and prices - those people are basically locked out of this market.

Even if I sold, where do I go? I’m going to be use all the equity from my current home to buy a higher priced something else at a higher rate.

And if you did sell your home now and buy another the new homes value will probably drop significantly over the next year or two because we are in a housing bubble that is getting ready to burst. My home increased over 250% over 10 years with most of the increase in just the past few years. If it was an investment that would be great if I could sell now but its not and I now have much higher property taxes.

[Shakeesha]

Originally Posted by shinestx

This state has just gotten too crowded for the infrastructure. TDOT is miserably ineffective in addressing the growth.

Clarksville and Chattanooga's infrastructure are woefully outdated. Nashville's has been for decades at this point. The pay as you go/no debt plan does not help either.

[GreggT]

Originally Posted by Shakeesha

Clarksville and Chattanooga's infrastructure are woefully outdated. Nashville's has been for decades at this point. The pay as you go/no debt plan does not help either.

You must not have been to Chattanooga lately, continuous construction on the interstates to open up the flow of North/South/East/West traffic plus downtown and along the river are actually walkable, safely I might add!

[Serious Conversation]

Originally Posted by Jumeby

And if you did sell your home now and buy another the new homes value will probably drop significantly over the next year or two because we are in a housing bubble that is getting ready to burst. My home increased over 250% over 10 years with most of the increase in just the past few years. If it was an investment that would be great if I could sell now but its not and I now have much higher property taxes.

I don’t see they happening in Tennessee largely for political reasons because, around here, we attract wealthy “political refugees” from blue states. That might change as the politics become even more extreme,

[recycled]

Originally Posted by Serious Conversation

I don’t see they happening in Tennessee largely for political reasons because, around here, we attract wealthy “political refugees” from blue states. That might change as the politics become even more extreme,

Tennessee in recent years has also become a well-known "tax refugee" haven, as in no state income tax. That might be an even bigger draw for new residents than partisan political reasons. My question is if no state income tax might also be one reason it is hard for the state to keep up with new road and other infrastructure? Other no income tax states have ways to bring in big revenue: TX with oil extraction tax, FL with hotel and tourism taxes, WY with low population and mining / oil tax, AK with oil tax, NH with very high property tax in a small state.

[Igor Blevin]

Originally Posted by recycled

Tennessee in recent years has also become a well-known "tax refugee" haven, as in no state income tax. That might be an even bigger draw for new residents than partisan political reasons. My question is if no state income tax might also be one reason it is hard for the state to keep up with new road and other infrastructure? Other no income tax states have ways to bring in big revenue: TX with oil extraction tax, FL with hotel and tourism taxes, WY with low population and mining / oil tax, AK with oil tax, NH with very high property tax in a small state.

Arizona, Tennessee, and Missouri are similar sized states. Tennessee has no income tax, while Arizona's top income tax rate is 3%, and Missouri's top rate is 5.5%.

2020 budgets for each state were:

$43 Billion -- Arizona
$39 Billion -- Tennessee
$30 Billion -- Missouri

https://en.wikipedia.org/wiki/List_o..._state_budgets

There is way more to state revenue streams than just income taxes. In the case of Tennessee, their largest revenue source is from sales taxes.