Chattanooga’s residential construction market continued to expand through the first three quarters of 2025 while commercial building activity eased, according to new data from The Market Edge.
The reports, which track building permits for the year through Sept. 30, show Chattanooga’s residential sector posting solid year-over-year gains. Residential permits across the market rose to 2,856 through September, up 16% from 2,459 during the same period in 2024. The annual residential total reached 3,348 last year, continuing a steady climb that began in 2022.
High-end home construction saw an even sharper increase. The number of units larger than 4,000 square feet or valued at more than $400,000 jumped from 177 during the first three quarters of 2024 to 309 during the same period this year, a 74% gain.
Hamilton County mirrored the upward trend. Residential permits there increased from 1,205 in last year’s reporting window to 1,307 year-to-date, while high-end permits more than doubled from 49 to 115. Bradley County also posted strong numbers, rising from 486 to 655 year-to-date.
Activity was mixed among the North Georgia counties that contribute to the Chattanooga housing market. Catoosa County climbed to 317 units through September, up from 178 a year ago. Whitfield County also rose, increasing to 323 from 284. Walker County declined to 254 units compared to 306 last year, though its high-end permits surged from 17 to 61.
Commercial construction moved in the opposite direction. Chattanooga’s commercial permit values fell to $690.9 million year-to-date in 2025, down 9% from $762.9 million during the same period last year. The decline follows a sharper drop in 2024, when annual commercial permit values slipped 17% from 2023 after an unusually strong spike the previous year.
Hamilton County’s commercial sector saw a modest softening. Permit values decreased from $489.9 million through September 2024 to $464.6 million this year, a 5% drop. Nearby Bradley County’s commercial values fell more steeply, from $90.6 million to $58.7 million year-over-year.
North Georgia counties showed wide variation in commercial activity. Whitfield County’s commercial permit values more than doubled year-to-date, rising from $57.8 million to $137.1 million. Walker County also posted a substantial increase, climbing from $1.3 million to $6.4 million. Catoosa County, however, declined sharply, dropping from $123.2 million through September 2024 to $24.1 million this year, an 80% decrease.
The Market Edge reports compile permit activity from code enforcement offices across Tennessee, Georgia, North Carolina, South Carolina, Kentucky and Indiana. The Chattanooga market includes Hamilton, Bradley and surrounding counties in southeast Tennessee, as well as Catoosa, Whitfield and Walker counties in north Georgia.
Source: The Market Edge