7 Picks for the Best Areas to Live in Tennessee (2025 Edition)

There’s more to Tennessee than country music and Smoky Mountain postcards. From mid-sized cities with an economic spark to small mountain towns that defy tourist stereotypes, this state has layers. If you’re searching for a home base with a strong job market, family-friendly atmosphere, and a cost of living that won’t break the bank—plus real estate moves worth paying attention to—keep reading. Below, we spotlight seven of the best areas to live in Tennessee that stand out in 2025. You’ll see classic big names and a few surprises, with details on why each place could be the right fit (or not). Consider this a no-frills look at what actually matters: housing prices, the local vibe, and whether or not you’ll still love living there five years down the line.

1. Knoxville: An Underdog on the Rise

Overview

Knoxville sits in East Tennessee, roughly an hour away from Great Smoky Mountains National Park. It’s home to the University of Tennessee’s flagship campus, a downtown area that’s seen fresh growth, and neighborhoods that run the gamut from historic to suburban sprawl. With a population nudging past 190,000 in city limits (and a much larger metro), Knoxville exudes a unique energy—casual, university-driven, and steadily evolving.

Cost of Living & Real Estate (2025 Snapshot)

Over the past couple of years, Knoxville’s housing market bumped up around four to six percent annually. As of 2025, you might snag a three-bedroom home in a walkable neighborhood for about $300,000–$350,000. Prices push higher in west side suburbs like Farragut or Hardin Valley, where new construction can cross the $400,000 mark without blinking. Despite these increases, compared to national hotspots, it’s still more approachable—especially for first-time buyers or relocating families.

Job Market

Knoxville’s economy thrives on a blend of higher education (UT), healthcare, and a growing tech and engineering sector (thanks to proximity to Oak Ridge National Laboratory). Several large manufacturers and distributors also operate in the region. This isn’t Silicon Valley, but steady expansions mean new job listings keep popping up, offering an alternative to the skyrocketing living costs in bigger metros.

Why Knoxville Makes the List

• Outdoor Access: With the Smoky Mountains so close, hiking and outdoor recreation become part of day-to-day life. You can be on a scenic trail in under an hour.
• Cultural Mix: The mix of college town influences and old-school Southern traditions creates an interesting backdrop. You’ll find brewpubs, art festivals, and sports mania—especially on UT game days.
• Manageable Traffic: Yes, rush hour can choke I-40, but it’s nowhere near the chaos of larger cities.

If you want a mid-sized city that isn’t at peak saturation, Knoxville’s on point. The real estate market’s still competitive, but not at panic-inducing levels, and neighborhoods continue upgrading infrastructure. Downsides? Some find the downtown scene small compared to bigger cities, and certain pockets in North or East Knoxville still grapple with blight. But the upsides remain strong, and you can’t overlook the closeness to mountains, lakes, and trails galore.

2. Nashville: The Headliner That Won’t Quit

Overview

Nashville gets the national spotlight—a music capital, a magnet for corporate relocations, and a population that soared past 700,000 in the city proper. By 2025, the city’s metamorphosis continues. Skyscrapers climb, new restaurants appear monthly, and traffic can test your patience. If you crave a fast-paced environment with big-city glitz, you’ll find it here. Just brace yourself for soaring real estate and an ever-changing skyline.

Cost of Living & Real Estate (2025 Snapshot)

Real estate in Nashville hasn’t cooled off much. In 2024, there was a momentary lull, but by 2025, values rebounded in core neighborhoods like The Gulch, East Nashville, and 12South. The median home price in or near downtown hovers around $450,000–$500,000. Suburbs like Hendersonville, Mt. Juliet, or Spring Hill offer slightly more attainable ranges ($350,000–$400,000 for a family home), but competition remains stiff. Rental rates also trend high, driven by a wave of newcomers and a robust short-term rental scene.

Job Market

Music might be the headline, but healthcare, finance, and tech feed Nashville’s continued growth. Corporate giants, healthcare systems (like HCA), and numerous start-ups set up shop in office towers across the city. While wages have risen, home prices often climb faster, forcing many middle-income earners to look outside city limits.

Why Nashville Makes the List

• Urban Pulse: A nightlife scene anchored by Broadway’s neon glow and a dining culture that shifts from hot chicken to artisanal sushi.
• Career Prospects: A stronger-than-average job market for skilled workers, entrepreneurs, and creative types.
• Music & Arts: Whether you love country or any other genre, the city’s music pipeline fosters endless live shows and festivals.

Still, Nashville can be polarizing. You pay a premium for a slice of city-center living, and the traffic on I-24 or I-65 can morph into an ordeal. But if you crave a major metro with job options and cultural events out the wazoo, it’s a prime contender.

3. Chattanooga: Bridging the Gap Between Urban and Outdoors

Overview

Chattanooga sits by the Tennessee River in the southeastern corner of the state. Nicknamed the “Scenic City,” it balances a compact downtown, a forward-thinking tech sector, and proximity to mountains, rivers, and rock-climbing hotspots. The population within city limits nears 190,000, but the metro extends well beyond that.

Cost of Living & Real Estate (2025 Snapshot)

Over the past two or three years, Chattanooga’s real estate prices rose by a modest yet consistent rate (roughly four percent yearly). Downtown condos can be found for $300,000–$400,000, while single-family homes in established neighborhoods like North Shore might push higher. Suburbs such as East Brainerd or Ooltewah provide more space at slightly lower prices, typically $275,000–$350,000 for a three-bedroom. While not dirt cheap, it’s generally more attainable than Nashville.

Job Market

This city has made waves with its “Gig City” branding, courtesy of ultra-fast internet offered by the local power company. That’s attracted tech start-ups and remote workers. The city also has strong manufacturing ties (Volkswagen has a plant here), along with a health and insurance presence. The variety of employers helps keep the economy balanced.

Why Chattanooga Makes the List

• Outdoor Haven: From mountain biking on Raccoon Mountain to rock climbing at Sunset Rock, you’ll find endless weekend adventures. There’s a reason travelers flock here for adrenaline.
• Downtown Revival: A once sleepy center transformed with cool coffee shops, breweries, and a modern waterfront.
• Pace of Life: Faster than a small town, more chill than a huge city.

The city’s biggest drawback is sprawl; traffic on certain corridors can jam up quickly. And while some parts of Chattanooga have upgraded quickly, older neighborhoods still wrestle with underfunded infrastructure. Even so, the blend of job opportunities, scenic wonders, and a rising cultural scene keeps it among Tennessee’s top picks.

4. Gatlinburg: A Mountain Gateway with Surprising Depth

Overview

Best known as a tourist magnet near the Great Smoky Mountains National Park, Gatlinburg’s year-round population hovers around 4,200, but millions of visitors pass through annually. Streets can be jam-packed in peak seasons with folks seeking funnel cakes and black-bear souvenirs. Yet behind the flashy storefronts, you’ll find neighborhoods tucked into the hillsides, where cabin-style homes overlook panoramic mountain vistas.

Cost of Living & Real Estate (2025 Snapshot)

The real estate market here is somewhat unique: short-term rentals drive demand. A modest cabin with rental income potential can fetch $350,000–$500,000, depending on the view and proximity to downtown. If you’re looking to live here full-time and want a “normal” neighborhood, you’ll pay less if you’re willing to be a bit outside the main strip (in developments like Chalet Village or along Highway 321). Prices rose about four percent from 2023 to 2025, so it’s still a rising market but not outlandish.

Job Market

Tourism is king, employing workers in hospitality, food services, and attractions. Many residents commute to Sevierville or even Knoxville for broader job options. Remote workers can find pockets of decent broadband, especially in areas with fiber or cable expansions. Don’t expect a large corporate presence; tourism and small businesses dominate.

Why Gatlinburg Makes the List

• Natural Splendor: The Smokies at your doorstep, with hiking trails, waterfalls, and wildlife galore. You can step outside to a daily dose of scenic therapy.
• Community Ties: Locals pride themselves on a tight-knit vibe, forged by weathering seasonal tourist swings and past events like the 2016 wildfires.
• Rental Potential: If you plan to buy a cabin and offset costs through short-term rentals, that’s a viable strategy here.

The main negative is the crush of seasonal crowds—traffic on the Parkway can be brutal, and groceries cost more than in major cities. If you can handle the constant tourism swirl and love mountain living, Gatlinburg remains a unique spot to settle.

5. Franklin: Historic Charm Meets Suburban Upscale

Overview

Located just south of Nashville in Williamson County, Franklin is known for its quaint downtown full of historical architecture, plus upscale suburban developments. With a population over 80,000 and counting, it’s grown into a hub for corporate offices, particularly in healthcare and finance. The meticulously preserved Main Street often appears on “best small towns” lists for its sense of history blended with modern conveniences.

Cost of Living & Real Estate (2025 Snapshot)

High demand has pushed home prices in Franklin well above state averages. A typical family home might hover around $550,000–$650,000, with some luxury developments scaling into seven figures. Even older ranch-style houses on the outskirts can hit $400,000–$450,000. While it may pinch your budget, the area’s school districts rank among the best in Tennessee, often cited as a driving force behind the real estate surge.

Job Market

Williamson County boasts corporate expansions and a steady pipeline of professional-level opportunities. Healthcare, finance, and tech subdivisions feed an affluent population. Residents can also commute to downtown Nashville in around 30 minutes to an hour, traffic dependent.

Why Franklin Makes the List

• Historic Appeal: The downtown area’s Civil War sites and heritage buildings create an atmosphere that’s both charming and distinctly local.
• A+ Schools: Many families move here to tap into top-ranked public education.
• Suburban Amenities: Upscale shopping centers, dining, and entertainment keep daily life convenient.

Of course, the cost of living can shock newcomers from cheaper areas. Traffic on I-65 at rush hour is no joke, and the city’s popularity continues pushing development outward. If you’ve got the budget and want a polished environment with a strong sense of local identity, Franklin delivers.

6. Johnson City: A Hidden Gem in the Appalachian Highlands

Overview

Tucked in northeast Tennessee, Johnson City is part of the “Tri-Cities” region (with Kingsport and Bristol). It’s often overshadowed by Knoxville or Asheville (just across the North Carolina border), but it’s been steadily growing. The population in city limits is around 70,000, but the broader metro region adds more. Mild summers, cooler mountain breezes, and a lower cost of living shape its appeal.

Cost of Living & Real Estate (2025 Snapshot)

Compared to the big Tennessee metros, Johnson City offers more bang for your buck. You might find a three-bedroom home in a decent neighborhood for $200,000–$280,000. The city’s expansions, particularly around the Boones Creek area, have introduced modern subdivisions in the $300,000–$350,000 range. From 2023 to 2025, real estate appreciation ran at about three percent annually—steady but not explosive.

Job Market

Home to East Tennessee State University, Johnson City has a robust educational and healthcare sector (the hospital system is one of the biggest local employers). There’s also a manufacturing presence in the region. It’s not a hub of giant corporate headquarters, but you’ll find moderate opportunities, especially in healthcare, education, and small business.

Why Johnson City Makes the List

• Outdoor Recreation: Nearby Buffalo Mountain Park, Watauga Lake, and Roan Mountain give hikers, boaters, and trail runners plenty to explore.
• College Town Ambiance: ETSU injects youth and cultural events, plus a decent music and arts scene.
• Affordable Housing: Great for first-time buyers or retirees who want scenic surroundings without high prices.

Some folks bemoan the lack of a big-city buzz or fewer job openings at certain income levels. Still, if you prefer a balanced pace with mountain vistas in every direction, Johnson City is one to check out.

7. Clarksville: Military Roots and Rapid Growth

Overview

Located about 50 miles northwest of Nashville, Clarksville is Tennessee’s fifth-largest city and neighbors Fort Campbell (though that installation is partly in Kentucky). It’s seen a surge in population, now hovering around 170,000 within city limits. This city often flies under the radar, but expansions in industry, retail, and housing have steadily placed it on the map.

Cost of Living & Real Estate (2025 Snapshot)

Fort Campbell exerts a big influence on housing demand. Many military families rent or buy in the area, so the market remains quite active. A typical single-family home might be $250,000–$300,000, with new builds popping up in subdivisions around Sango or Tiny Town Road. From 2023 to 2025, prices rose at around five percent annually, partly spurred by the influx of military personnel and folks seeking a cheaper alternative to Nashville.

Job Market

Aside from the military presence, Clarksville hosts manufacturing and distribution centers, plus an emerging retail scene. Some residents make the commute to Nashville, though that can push an hour or more in peak traffic. The city’s public sector jobs, healthcare, and local businesses round out the job landscape.

Why Clarksville Makes the List

• Affordable Options: Cheaper than Nashville or Franklin, with a variety of new subdivisions.
• Military-Friendly: Businesses and schools cater to service members, veterans, and their families.
• Steady Growth: Ongoing economic development means rising property values and new amenities.

Critics point out that Clarksville’s suburban sprawl can feel haphazard. And while it’s easy to reach the bigger city if you can tolerate the commute, some prefer living closer to metropolitan action. Still, for those wanting a middle-ground with stable house prices and a supportive network for military families, Clarksville stands out.

Choosing Your Tennessee Base

Tennessee’s diversity is striking. Each region offers its own blend of scenery, economic tempo, and real estate quirks. Whether you gravitate to Knoxville’s blossoming city center near the Smokies, Nashville’s high-octane job scene, or smaller spots like Johnson City with calmer living, it’s all about alignment with your priorities. Some prefer a fast-lane environment with glossy skyscrapers and global cuisine. Others want that fresh-air mountain vibe where the local diner staff greets you by name. There’s no universal best—just the place that fits you.

Remember to do your homework on local taxes, check how commuting might affect your daily life, and budget for properties that might not stay on the market long in hot ZIP codes. If possible, visit in person—drive around neighborhoods, talk to residents, see how the place feels at different times of the day. Tennessee’s real estate market in 2025 remains competitive in popular hubs, but prices remain more approachable than in many coastal metros. So if you’re itching for new scenery, weigh the trade-offs of each region. You might just find a spot where rolling hills, job prospects, and a decent cost of living intersect in a way that suits you—and you’ll be calling yourself a Tennessean in no time.