Chattanooga Home Prices and the Aug. 11 City Council Housing Votes

The Chattanooga City Council takes up two housing items on Tuesday, Aug. 11: a special exceptions permit amending a residential planned unit development on Mercer Street, and final action on a rezoning for a 48-unit townhouse and 46 single-family home neighborhood at Tyner and Kirkman roads.

What is the Mercer Street vote about?

Case 2026-0050 asks to amend conditions 1 through 4 of Resolution 32672 (previously case 2025-0138), the special permit for a residential planned unit development covering part of 1547 Mercer Street and an unaddressed property in the 1500 block, in District 2. The agenda lists two versions: the conditioned version is recommended for approval by the Planning Commission and staff, while the applicant's version is recommended for denial. That split is the whole story — the fight is over the conditions, not the housing.

What happens with the 94 homes at Tyner and Kirkman?

The Chattanooga-Hamilton County Regional Planning Commission recommended approval in July of a 48-unit townhouse and 46 single-family home neighborhood at that intersection, in a case previously deferred over community opposition. Rezoning cases in the city limits are ultimately decided by City Council, and this one was set for the Aug. 11 meeting. July's planning meeting also cleared preliminary approval for Scoutview, a 77-home plat in Hixson at Middle Valley and East Boy Scout roads, a 46-unit second phase at The Retreats At White Oak, and a 100-home first phase in Ooltewah on 31 acres, with another 39 acres held for future phases.

What are Chattanooga homes actually selling for right now?

The greater Chattanooga region's median sold price was $365,000 in July, up 4.3% from $349,900 a year earlier, while inside the city limits the median sold price was $360,200, up 1.5%. City sellers averaged 98.4% of final asking price and about 47 days on market. At the same time, list-side data shows real buyer leverage: the median listing price fell 3.0% to $399,900, active listings jumped 24.9% year over year, and 23.8% of active listings carried a price reduction.

What this means if you own or buy here

• District 2 owners near Mercer Street: the council chooses between the conditioned plan and the applicant's version. Conditions are what protect setbacks, access and density on your street — read both before Tuesday.
• Owners near Tyner and Kirkman: 94 new units means 94 future comparable sales. Townhome pricing tends to set the floor for the surrounding single-family stock.
• Buyers: nearly a quarter of active listings already carry a price cut and supply is near five months. Ask for repairs and rate buydowns, not just price.
• Sellers: city homes are still averaging 98.4% of final asking price in about 47 days — but region-wide, sellers netted 95.4% of the original price. The gap between those two numbers is what overpricing costs you.
• Move-up sellers: with inventory up nearly 25%, you have choices to buy but more competition to sell. A guaranteed-sale plan locks the sale date first* so you can act on the extra inventory instead of watching it go.

What's happening in Chattanooga this week and this month

• Mill Town Street Fest — Wednesday, Aug. 12, 4 p.m. · 1800 S. Watkins St., Chattanooga
• Chattanooga Market — Sundays · First Horizon Pavilion, 1826 Reggie White Blvd.
• The Temptations and The Four Tops — Saturday, Aug. 22, 7 p.m. · Chattanooga
• Chattanooga Handmade & Artisan Expo — Friday, Aug. 28, 10 a.m. · Coolidge Park, Chattanooga
• Chattanooga World Food Truck Festival — Saturday, Aug. 29, 11 a.m. · Tennessee Riverpark, Chattanooga (free)

Sources: Chattanoogan.com, Aug. 7, 2026 (upcoming City Council agenda for Aug. 11); Chattanooga Times Free Press, July 18, 2026 ("What's Going There? Over 300 new housing units gain approval"); Greater Chattanooga REALTORS® July 2026 sales data; national listing data for Chattanooga, July 2026; Freddie Mac Primary Mortgage Market Survey, Aug. 6, 2026; Chattanooga event listings.

*Tracy and seller must agree on price and possession date