While the recent economic downturn has brought what may seem as endlessly bad news, the City of Chattanooga, Tennessee, had reason to celebrate when Volkswaken Group of America officially opened its manufacturing plant there. A $1 billion dollar investment, the new plant represents a new light for the economic future of the Chattanooga properties market as well as for the future of fuel-efficient car manufacturing in the United States.
The plant will produce the Volkswagen Passat, a model that has seen a great deal of success in the U.S. mid-sized car market. With an estimated 43 mpg, the Passat makes a great deal of sense in a world of rising fuel prices and ecological deterioration. 2,000 proud Chattanoogans now work at the plant, with a projected 9,500 indirect jobs created through the plants business relationships with suppliers. The plant itself is a prime example of a new approach towards manufacturing that is ecologically sound and much more socially responsible, putting Chattanooga on the forefront of a new automobile manufacturing philosophy.
So, what does this new plant represent for the Chattanooga properties market? The answer is simple–a bright new future of growth in several key aspects. The creation of new jobs brings the potential necessary for an increase in home ownership opportunities. Combined with the decrease in home prices and low mortgage rates, this creates an ideal formula for buying Chattanooga homes. In such an economic revival, demand for Chattanooga homes will likely increase making the investment opportunities even more attractive for potential buyers. It’s no mystery that with increased owner occupancy, communities experience increased value and are better maintained.
According to Trulia, Chattanooga homes sales have increased steadily since February, 2011. It should come as no surprise that Volkswagen’s investment in the community has been a driving force behind this great news. With the increased demand, the median home price has also risen, but is currently holding steady near $115,000. With mortgage rates between 4% and 5%, Chattanooga has put itself on the map of up and coming places worthy of living or investing in.