A new white paper from CRER director and chief economist Howard Wall looks at the links between demographics and housing trends in the Chattanooga metro area between 2014 and 2024.
A gap between the growth in the number of households and the growth in housing units lowered vacancy rates and put pressure on prices. In addition, the relatively strong population growth and demographic transformation of the period affected the types and locations of new housing. Specifically, townhouses and apartment buildings with 20 or more units became more prevalent, especially in the city of Chattanooga. In terms of housing size, there were two opposing trends: An increase in the number of people living alone has meant a relatively large increase in small homes, but higher incomes have meant an increased demand for larger homes.