For readers in the Tennessee Valley, summer usually signals lake season – lazy weekends on the water, family barbecues and, for some, dreams of a second home on Chickamauga or Nickajack. But in 2025, that dream is colliding with an uneasy economy.
Despite early hopes for a rebound in lake home sales this year, the national market has cooled – and Tennessee is feeling it.
“Real estate hasn’t behaved the way any of us expected,” says Glenn Phillips, CEO of Lake Homes Realty, in an article by Oscar Gipson, communications coordinator at the company.
Lake Homes Realty’s “Summer 2025 Lake Real Estate Market Report” shows that while listings are up across the country – including in Tennessee – buyer hesitation is growing. Nationally, the number of lake home and lot listings rose to 112,530, a more than 17,000-unit increase over last summer. Total market value? A staggering $65.6 billion – up from $53.3 billion a year ago.
That includes a healthy slice in Tennessee, which ranks fifth in the U.S. for total lake home value: $3.4 billion across 7,404 listings, the third-highest listing volume of any state.
But more listings don’t mean more sales.
A market in pause
According to Gipson, tariffs are playing a larger role in the market freeze than many realize. He quotes Phillips as saying, “These ongoing, unpredictable tariff decisions are jolting the stock market – and our buyers are watching closely.”
Lake homes are discretionary purchases, and more than 50% of all transactions are cash. While some blame stalled deals on mortgage interest rates, Phillips says that’s a “lazy answer.” Rates might affect a few buyers, but most have adjusted to 6–7% as the new normal. In lake real estate, especially, interest rates rarely play a major role in market activity.
“When affluent buyers see volatility in their investment portfolios or hear mixed messages about trade and inflation, they pause,” Gipson writes.
The uncertainty isn’t just economic – it’s emotional, Phillips adds.
“People aren’t buying second homes ... [because] they’re unsure about their financial future.”
Tennessee stays near the top
While demand has slowed, Tennessee remains a major player in lake real estate. According to the report, only Texas and Florida have more listings. Tennessee’s lake markets – such as Chickamauga, Tellico, Norris and Douglas lakes – continue to offer diverse price points.
Across LakeHomes.com, the average price for a lake property is $582,986, putting many Tennessee homes within reach of buyers from Atlanta, Nashville and beyond.
While Tennessee saw its market grow, other lake-rich states are surging even more. Texas leads with 21,341 lake home listings, totaling nearly $12.4 billion in value. Florida follows with 13,113 listings, valued at just over $7 billion.
Luxury lake markets like Lake Sherwood, California (average price: $5.7 million) and Lake Vedra, Florida ($5.3 million) top the list for most expensive listings, while Lake of the Ozarks in Missouri leads for total number of lake home and lot listings.
For now, the lake home market appears to be cooling rather than collapsing. As Phillips says, “A confused buyer doesn’t pull the trigger. They wait.”
That might create opportunity – or hesitation – across the Chattanooga area. Either way, the summer market is entering a slower, more cautious season.