Scenic City’s real estate scene is heating up with several neighborhoods set to make waves in 2026. Each presents its own mix of culture, investment potential, and lifestyle appeal.
Southside / South Broad District
Anchored by the highly anticipated opening of the Erlanger Park Stadium on April 14, the area is transforming into a hub of mixed-use development, housing growth, and entertainment venues. The new stadium is expected to boost nearby property values and attract investors looking to capitalize on Chattanooga’s expanding live-work-play culture.
Downtown Chattanooga
Hawk Hill is one of the city’s most ambitious redevelopment projects led by River City Company. It aims to make the former AT&T Field site into a vibrant, walkable community with housing, retail, hospitality and green public spaces. This initiative marks a major step toward sustainable and urban growth that blends modern living with natural landscape.
One Westside
The Choice Neighborhoods Initiative continues its progress by introducing mixed-income housing, community reinvestment, and public improvements. The goal is to bridge neighborhoods through inclusive urban design while fostering economic opportunities and long-term housing stability.
Northshore
Known for its river views, indie boutiques, and walkable streets, it remains one of Scenic City’s most desirable and in-demand neighborhoods for both renters and homebuyers. With average two-bedroom rents around $1,850, a vacancy rate below 4%, and trendy spots like Coolidge Park and Frazier Avenue that offer both lifestyle appeal and investment strength.
St. Elmo
Nestled at the base of Lookout Mountain, St. Elmo blends historic charm with a growing artistic community. Median home prices hover around $285,000, a favorite among young professionals, first-time buyers, and short-term rental investors. Its proximity to attractions and popular restaurants enhances its appeal.
Highland Park
In the midst of a powerful revival, fueled by home restorations, park revitalization and bike-friendly streets, it continues to attract first-time buyers, students, healthcare professionals and young families. With rents up 8% year-over-year and close proximity to downtown, UTC, and Erlanger Hospital, it’s now one of the city’s fastest-growing residential hotspots.
Red Bank
A quick drive from downtown, strikes the perfect balance between urban convenience and suburban comfort. Home prices are 15–20% lower than other properties and rents have climbed 7.5% in the past year. With great schools and an established community, it’s becoming a favorite for families and long-term investors seeking strong value growth.
East Ridge
A place that stands out for its growing economical properties, community initiatives, and diverse charm. Local favorites like Champy’s Fried Chicken, combined with vintage and new builds, continue to draw buyers seeking long-term appreciation and community connection.