The Chattanooga region’s population growth is on the rise, like a few other spots throughout the American South. Pleasant weather, a lower cost of living due to tax and governance policies, and the opportunity to own more private property with rights versus other states and regions are among our city’s positives.
But Chattanooga’s growth outpaces the national average by more than double at a rate of 5.5 percent according to the University of Tennessee at Chattanooga’s Center for Regional Economic Research. Between 2020 and 2025, the Scenic City’s beauty and livable community has drawn more inbound movers at a pace that will translate into a metropolitan area of more than 600,000 residents this year.
The primary driver of this growth is deemed immigration, but not the international movement from other countries. Chattanooga’s expansion is largely fueled by individuals and families relocating from other regions, or domestic migration. Of the approximate 31,000 new residents, nearly 27,000 have been from higher cost regions or those where economic growth has stalled.
Another contributing factor to the report authored by Dr. Howard Wall of UTC’s Center for Regional Economic Research is the area’s demographic structure that is in need of this domestic migration to offset the lagging birth rate compared to those of senior status who transition from this life to eternity. This natural population decline contributes to labor shortages but offers opportunities for seekers of employment moving into the region.
As domestic migration has ballooned the population, the pressure on local infrastructure, such as roads, facilities and institutions, like schools, housing, and healthcare is mounting and noticeable.
Chattanooga is in a high-growth corridor along I-75/I-24 in the center of the South due to our manufacturing base and workforce, along with being a logistics hub, with tremendous opportunities in technology and energy.
While Nashville is outpacing Chattanooga at 9% growth, the cost of living there is significantly higher with tremendous infrastructure pressures, especially on poorly planned and maintained roads and housing costs that are among the highest in the US.
Will Chattanooga’s leadership, along with that of Hamilton County work proactively to address these essential needs that maintain economic vitality and permit communities to thrive?
The expanding tax base of property taxes will be part of the funding solution. However, pet projects that do not add value to an entire community must be assessed for return on investment. Development must be planned to support growth, not just fuel jobs and payrolls of workers.
Poor planning and rubber-stamped approvals create area flooding in a city cut up by the Tennessee River and countless tributaries and watersheds, overcrowded schools, and roads that do not support the volume of traffic in an area of high density housing or retail.
Other Tennessee counties are beginning to discuss and consider options such as impact fees on new residential and non-residential developments to cover costs. Our local leaders must be creative in responding and not reacting too late to a mess that was permitted.