New Construction Home Prices in Chattanooga (June 2025 Market Guide)
How Much Does It Cost to Build a Home in Chattanooga?
New construction home prices in the Chattanooga area start at $139 per square foot and can climb as high as $823 per square foot, depending on location, builder, and finishes. That may sound like a broad range (and it is) but it’s actually good news. Chattanooga offers options for every lifestyle and budget.
Whether you’re dreaming of a custom estate on the ridge or a move-in ready craftsman in an established neighborhood, Jay Hudson Homes – Keller Williams is here to guide you every step of the way.
🧩 What Determines New Construction Home Prices?
🔍 Key Cost Factors:
- Finishes: Every upgrade and design choice adds value but also increases your construction budget.
- Land Costs: Building in areas like North Shore or Ooltewah may require higher land investment.
- Build Type:
- Spec homes are affordable and move-in ready.
- Semi-custom homes allow for some personalization.
- Fully custom homes are the most expensive but offer complete control.
- Permits, Labor, Materials: Nationwide trends are impacting local prices.
🗺️ Location, Location, Location
Chattanooga New Construction Home Prices: Examples from FlexMLS (June 2025)
As you can see, Chattanooga offers something for everyone from luxury bluff-top builds to affordable suburban communities. And there are many other communities to choose from.
How to Get the Most Value in 2025
If you’re looking to move quickly, completed spec homes and track homes in communities like The Grove, Hummingbird Village, and Original Town Market Place offer the advantage of being move-in ready. For buyers focused on affordability, Northwest Georgia provides homes around $200 per square foot with practical, family-friendly layouts. And for those thinking long-term, areas like Downtown and Lookout Valley are smart investments, with rising demand and strong potential for appreciation. Keep in mind that new construction home prices are directly influenced by how much you choose to personalize your build, selecting premium finishes, altering layouts, or adding upgrades can all raise your final cost.
🤝 Let’s Build Your Dream—Together
Chattanooga’s new construction communities are more than just the new construction home prices—they’re lifestyle choices tailored to how you live. Whether you’re looking to raise a family, simplify your routine, or embrace city life, there’s a perfect option for you.
For families, Chattanooga offers a range of spacious new construction homes located in top-rated school zones like East Hamilton and Heritage High. These neighborhoods are designed with family living in mind, featuring community pools, sidewalks, and walking trails. Homes often include basements, bonus rooms, and flexible spaces that easily adapt to the changing needs of growing households.
If you’re seeking low-maintenance living, townhomes offer a smart solution. Many include professional lawn care and landscaping, eliminating the hassle of exterior upkeep. With smaller, more manageable layouts, townhomes are ideal for singles, couples, downsizers, or first-time buyers. Their close-knit design encourages a sense of community, with opportunities to meet neighbors and enjoy shared amenities. Some even include added security features like gated entries for extra peace of mind.
For those who prefer an urban lifestyle, condo living delivers luxury and convenience. Downtown Chattanooga condos allow residents to walk or bike to work, restaurants, and entertainment venues—reducing car dependency and promoting a healthier, more active lifestyle. Homeowner associations typically handle snow removal, exterior repairs, and other maintenance, making this an excellent choice for frequent travelers or busy professionals. With rising demand and limited inventory, downtown condos also represent a strong investment opportunity.
No matter your stage of life or what you’re looking for in a home, Jay Hudson Homes – Keller Williams is ready to help you explore the new construction options that align with your lifestyle and goals.
📊 Market Insights from FlexMLS – June 2025
💰 Price Per Square Foot Ranges:
- Lowest Average: $139/sq ft (select rural areas & spec homes)
- Highest Average: $823/sq ft (luxury condos in the heart of Chattanooga’s downtown)
- Most Common Range: $200–$275/sq ft
🏘️ Available Homes for Sale by Area:
- The Grove, Ringgold GA: 8 available spec homes
- Hawks Landing, Apison: 11 available semi-custom homes
- Kings Court: Cleveland: 8 available semi-custom homes
- Hillcrest Landing, McDonald: 16 available track homes
- Paxton Pointe, Hixson: 2 available semi-custom homes
- Barrington Pointe, Soddy Daisy: 5 semi-custom homes
- Social Circle, East Brainerd: 5 spec homes
- Black Creek, Lookout Valley: 10 spec homes and semi-custom homes
These communities are just a snapshot of what Chattanooga has to offer. From scenic planned developments to brand-new builds, the area is full of fresh opportunities.
📈 What’s Driving the Market?
Chattanooga remains a strong and active market for both builders and buyers, with demand continuing to fuel growth in new developments across the region. Among the different types of builds, semi-custom homes offer the most price stability thanks to their flexible layouts and moderate customization options—making them a practical choice for many buyers. On the other hand, custom homes are experiencing rising costs due to limited land availability and the increasing demand for personalized finishes and high-end design features. For those entering the market, spec homes continue to deliver strong value, especially for first-time buyers seeking move-in ready options. Overall, new construction home prices reflect these trends, with a range of opportunities based on the level of customization, location, and builder offerings.
🏁 Ready to Explore New Construction in Chattanooga?
If you’re ready to explore new construction in Chattanooga Jay Hudson Homes – Keller Williams is here to guide you every step of the way.
Whether you’re looking for a move-in-ready home, a semi-custom layout, or you’re just beginning the process of selecting land we’re not just Realtors; we’re advocates. From the initial land search to the final walk-through, our team walks beside you—not just ahead of you—offering support, solutions, and trusted builder connections throughout the process.
With so many choices available and new construction home prices ranging widely based on customization, location, and finishes, it’s essential to have professionals who can help you navigate your options with confidence. We specialize in matching families with the right builders, the right communities, and the right home for their next chapter.
📞423-702-0116 Schedule your free consultation today
🎁 And receive a welcome gift to help with your move when you work with us!
New Construction Home Prices FAQs
What’s the difference between a builder’s base price and the final price of a new construction home?
New construction home prices typically start with a base price, which covers the standard floor plan and finishes. However, the final price can increase with upgrades like premium flooring, cabinetry, appliances, and lot location.
How long does it typically take to build a new home from start to finish in Chattanooga?
While timelines vary, homes often take 6 to 10 months to complete. Factors like weather, permits, and builder schedules can affect the time frame. And it’s important to understand how this impacts new construction home prices over time.
Can I use my own lender or do I have to use the builder’s preferred lender?
You can usually use your own lender, but some builders offer financial incentives if you choose theirs—something that could lower your new construction home price through closing cost credits or upgrade packages.
Are property taxes higher for new construction homes?
New construction home prices don’t directly dictate property taxes, but taxes are eventually assessed based on the full market value once the home is completed—so you may see a rise after initial ownership.
Can I negotiate the price of a new construction home with a builder?
While base prices may be set, new construction home prices can sometimes be negotiated through incentives, free upgrades, or reduced lot premiums—especially when builders need to close out inventory.
Do I need a real estate agent when buying new construction?
Yes. A trusted Realtor helps you understand contracts, timelines, and new construction home prices in the local market—ensuring you don’t overpay or miss key details during the build process.
What kind of warranties come with a new construction home?
Many builders include warranties that protect your investment, which is an important consideration when evaluating new construction home prices. These often include 1-year workmanship, 2-year systems, and 10-year structural warranties.
Are new construction home prices expected to rise in the next year?
Yes, many experts forecast that new construction home prices will continue to rise due to factors like labor shortages, material costs, and strong buyer demand in fast-growing markets like Chattanooga.
