Building Costs Per Square Foot in the State of Tennessee, USA

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Newly-built 4 Bedroom House with 3 Bathrooms and 2 x Attached Garages, Gross Floor Area 1840 sqft - on 0 Riverwood Drive, Buchanan, Tennesse - Price $339000

Completed in 2022 – Newly-built 4 Bedroom House with 3 Bathrooms and 2 x Attached Garages,
Gross Floor Area 1840 sqft – on 0 Riverwood Drive, Buchanan, Tennesse –
Price $339000

Residential Construction Market Analysis in the State of Tennessee, USA

Building costs are 2% below the national average in the state of Tennessee, and closer to Pennsylvania, South Carolina, Wyoming, South Carolina,  New Hampshire, Indiana, Iowa, Missouri, Montana, Oregon and Utah by 1%  . Nothing speaks so much of the courage of a person as the fact of being encouraged to build a house or invest in the real estate market. This is because it is a market known to be unstable, but don’t let this scare you; It is one of the markets that give the highest profits and if you can make it in this business you can make it anywhere.

Whether you want to build your own forever home to live with your family, or if you are looking to promote a real estate project, it is always important to find out about the particular situation of each place. In this article, we will focus on Tennessee, one of the states that are often forgotten, but that hides great wealth and a few diamonds in the rough.

Keep reading as here we’ll give you an inside look at the real estate market in Tennessee, as well as an outlook on home construction and some data on residential home building values ​​here.

Tennessee Construction Outlook

In case you didn’t know, Tennessee is located in the south of the country, which is mostly known as the Central Southeast of the United States. It is usually overshadowed by other states in that region such as Kentucky, but without a doubt, this one has nothing to envy.

Tennessee homes are fairly modest, even those just a few feet from the Nashville spotlight. They are picturesque, small, and American-style houses like the ones you would see in movies where the protagonist is a country music musician.

Although its capital is Nashville, its most populous city is Memphis, and either one is a beautiful place to live. Not only for nature and tranquility, but you will also feel like a cowboy all day. The best thing about the cities of Tennessee is that no matter where you are you can always see the clear blue sky since there are not many skyscrapers.

Tennessee Housing Market Analysis

The Tennessee real estate market is in good shape, in fact, a 30% increase in home values ​​is expected this year, while last year there was a 20% increase in different types of properties. In the last 5 years, there was a total increase of 80% in property values, which allows us to see this region as a growing region and a great opportunity to invest.

It is a good place to build houses from scratch or restore old houses (keep in mind that you can find many problems with rotten wood) since it is cheaper to buy land and build there than to buy a brand new house.

Buying an average house that is brand new, or in good condition, that is, one that is not a house from the 1980s, but one that is a decade old at most, costs from $360,000 to $400,000 in Nashville and Memphis, and this number decreases to a maximum of $350,000 in the smallest towns in Tennessee.

The most expensive neighborhood in all of Tennessee is located in Nashville and is called West Meade. There the value of a house has a maximum of $850,000, which is surprising but do not forget that it is a state-of-the-art mansion.

See also  Building Cost Per Square Foot in City of Auburn, Alabama, USA - Class 2 Semi Luxury Single Family Homes, 4 Corner House.

One of the cheapest neighborhoods in Nashboro Village, where you can build a modest house for $250,000. On the outskirts of Nashville, you may find nice houses or apartments for $150,000.

All these values ​​are about houses already built, but it is to give you an idea of ​​what the state of the real estate market is and how much the properties can be sold for. This is important if you are looking to invest. In any case, remember that the values ​​may vary from one year to the next, and depend on a more general socio-economic context.

Tennessee Average House Price (Median Home Price)

If you are looking for good value for money, then Tennessee is the place for you. Unless you build in the wealthier neighborhoods, the houses are fairly modest, with only a few reaching two stories. Construction materials are very cheap, it is usually built with the basics since the style of wood plank walls is still used outside your house. Of course, you can build a home as you want, and as modern as you like, but without a doubt, it is best to do it in the Tennessee style in this case.

The price of an average house, that is, 3 bedrooms with 2 bathrooms, a kitchen equipped with the basics, a garage, and a large garden, can cost up to $250,000. Of course, you can save money if you buy cheap land to build on, or if you choose to build from an existing house, i.e. restore.

In any case, it is not always recommended to restore a house in this area, there are times when the best thing you can do is demolish it and start from scratch since there is some wood that is rotten inside or asbestos is usually generated by the weather, especially in the basements.

Luxury home with a bright tile kitchen or marble island, state-of-the-art bathrooms, 5 bedrooms, and two stories or more can cost up to $500,000, which is pretty cheap if you share it with other estates.

Tennessee Residential Building Projects

The Village Real Estate company is one of the largest investors in Tennessee, especially in Nashville. Most of his projects are family homes, modest but comfortable and visually beautiful. In any case, they are not only dedicated to houses, but they are also working on some residential buildings in Nashville, so as you can see the world of real estate here is varied, especially in Nashville.

If you go to the interior of the state you will find that almost all the projects are for homes since most people do not want to live in buildings, in fact, many people highlight that they choose to live in Tennessee for the tranquility, and yes If they wanted to live in a shoe box, they would go to another city. So keep that in mind when investing or buying land for your next home.

Newly-built 3 Bedroom House with 2 Bathrooms and 2 x Attached Garages, Gross Floor Area 1650 sqft - on 485 Roaming Drive, Chuckey, Tennessee - Price $280,000

Completed in 2021 – Newly-built 3 Bedroom House with 2 Bathrooms and 2 x Attached Garages,
Gross Floor Area 1650 sqft – on 485 Roaming Drive, Chuckey, Tennessee –
Price $280,000

Building Costs Per Square Foot for Single Family Homes in the State of Tennessee, USA

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in Tennessee ranges from $337.99 per sqft to $518.13 per sqft, with the average being $399.88 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

See also  Building Cost Per Square Foot in City of Anniston, Alabama, USA - Class 2 Semi Luxury Single Family Homes, 4 Corner House.

Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in Tennessee ranges from $205.42 per sqft to $314.87 per sqft, with the average being $242.41 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in Tennessee ranges from $132.79 per sqft to $201.69 per sqft, with the average being $155.47 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in Tennessee ranges from $96.91 per sqft to $148.62 per sqft, with the average being $114.37 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in Tennessee ranges from $78.66 per sqft to $120.47 per sqft, with the average being $92.76 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in Tennessee ranges from $62.04 per sqft to $95.10 per sqft, with the average being $73.19 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

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List of 7 Metropolitan Areas/Cities in Tennessee – Percentage Deviation of the City/Town Building Cost from the National Average ($X), in Descending Order:

There are 364 municipalities grouped into 92 counties in the state of Tennessee. The bar chart below indicates that building costs vary in each metro city/town. The construction cost per square foot in each of these metropolitan cities varies from the state and national average by a certain percentage based on the location factor also known as the local modifier.

The percentage deviation of building costs from the National Average for each metropolitan area in Tennessee is shown below.

If $X is the Average National Building Cost in the USA, then it will cost the following to build a residential property in each metro city/town in Tennessee:

Tennessee Average -2% (2% less than X)

  • Cookeville 385 -8%
  • Columbia 384 -7%
  • Kingsport 376 -5%
  • Jackson 383 -2%
  • Cleveland 373 -1%
  • Clarksville 370 1%
  • Chattanooga 374 2%

The Metropolitan Area List above as well as the Bar Graphs below shows that Cookville is the cheapest city to build a private home in the state of Tennessee, and Chattanooga is the most expensive city to build a home. Building costs are -8% below the national average in Cookville and 2% above the national average in Chattanooga.

Cheapest Places To Build in Tennessee:

Cookville is the cheapest to place to build at -8% below the national average, followed by Columbia City at -7%. The third cheapest place to build is Kingsport at -5% below the national average. The fourth cheapest city to build a house is Jackson at -2% below the national average, followed by Cleveland at -1% below the national average. The sixth cheapest place to build a house is Clarksville at 1% above the US average. Building costs in the city of Jackson resemble the state average.  Building costs in the city of Chattanooga are 2% above the national average.

Expensive Places To Build in Tennessee:

If anything between 5% and 10% is considered expensive, then there are no such metropolitan areas in the state of Tennessee.

More Expensive Places To Build in Tennessee:

If anything between 10% and 15% is considered more expensive, then there are no such metropolitan areas in the state of Tennessee.

Very Expensive Places To Build in Tennessee:

The most expensive places to build a house in the USA are those 15% above the national average. There are no such places in Tennessee.

Tennessee State Average Costs:

Private home building costs in the state of Tennessee are -2% below the US average. Building cost rates in the metropolitan area of Cleveland are closer to the Tennessee state average by a deviation of 1%. Construction costs in the city of Jackson are equal to the state average. Chattanooga is the most expensive city to build a home in Tennessee, and the state of Tennessee is number 23 on the national ascending costs scale.


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