2026 is shaping up as an inflection year for Chattanooga’s apartment market, marked by improving fundamentals and stabilizing rents as the market transitions out of its recent supply surge and back toward more normalized operating conditions.
The most recent wave of deliveries was largely suburban, but the next phase of development is increasingly concentrated in the urban core, with Downtown Chattanooga accounting for roughly 670 of the 750 units currently under construction.
Rent resilience has been strongest in more affordable, workforce-oriented properties where occupancy remains tight, while newer, higher-end assets continue to face muted pricing power due to elevated lease-up competition.
Chattanooga enters 2026 in a clear transition phase as the multifamily market moves beyond an outsized supply cycle and into a period of recalibration...
