In this article, we will take a look at the 15 fastest growing cities in Tennessee.
Tennessee’s economy is supported by a range of sectors, including agriculture, healthcare, manufacturing, and tourism. As of the third quarter of 2023, the state’s annual real GDP reached $524.9 billion, reflecting a growth rate of 5.2% per year. The retail sector experienced significant economic expansion during this period, with a growth rate of 28.4%. Meanwhile, manufacturing remains the cornerstone of Tennessee’s economy, contributing $75 billion to its GDP. Looking ahead to 2024, Tennessee’s economic development forecast predicts a growth rate of 1.8%, outpacing the national average of 1.4% for the US.
Furthermore, reports indicate that Tennessee has a lower unemployment rate compared to the national average. As of March 2024, the state’s unemployment rate was 3.2%, marking a decrease from 3.5% in January 2024. In recent times, Tennessee has allocated more funds to encourage employers and businesses to generate additional job opportunities for its residents. Over the past four years alone, the state has created 117,000 new jobs, alongside drawing in hundreds of thousands of individuals to Tennessee. Based on census data tracking state-to-state migration, Tennessee recorded an influx of 225,000 newcomers between July 2021 and July 2022. Over 25,000 individuals relocated from Florida, while around 22,000 came from California during this period. You can check out the 15 States Where People Are Fleeing here.
Some of the popular companies supporting Tennessee’s economy include FedEx Corporation (NYSE:FDX), HCA Healthcare, Inc. (NYSE:HCA), and Target Corporation (NYSE:TGT).
HCA Healthcare, Inc. (NYSE:HCA), headquartered in Nashville, is a leading healthcare corporation specializing in hospital services and operating surgery centers. Operating in about 20 states, HCA Healthcare, Inc. (NYSE:HCA) has 162 hospitals and 113 freestanding surgery centers. In addition, the company employs around 235,000 people.
Target Corporation (NYSE:TGT) is known for its commitment to offering products at competitive prices. The company’s stores usually offer a range of general merchandise, including clothing, household items, electronics, toys, and groceries. As a Fortune 500 company with more than 400,000 team members worldwide, Target Corporation (NYSE:TGT) is one of America’s top retailers.
FedEx Corporation (NYSE:FDX), based in Memphis, Tennessee, is a transportation company that specializes in e-commerce and global shipping. On January 31, 2024, FedEx Corporation (NYSE:FDX) secured the 17th spot on Fortune’s ‘World’s Most Admired Companies list,’ marking its 24th consecutive year among the top 20 companies on the list.
Here’s what Artisan Partners said about FedEx Corporation (NYSE:FDX) in its Q4 2023 investor letter:
“Other Q4 laggards were global reinsurer Arch Capital and shipping company FedEx Corporation (NYSE:FDX)—holdings that pulled back following large gains. Back in September 2022, FedEx was selling for less than 8X our estimate of normalized earnings due to substantial pessimism. Although the demand environment remains challenging globally, particularly in the Express segment, the company is delivering solid earnings growth driven by cost savings initiatives. FedEx’s DRIVE program, which seeks to deliver $4 billion in permanent cost reductions by creating an integrated air-ground network similar to that of rival UPS, is showing progress, and workforce reductions have also been enacted. While operating results can be choppy, FedEx’s longer term business economics are highly favorable given the global shipping industry’s consolidated structure and massive barriers to entry that afford operators with pricing power to counter cost inflation and earn respectable returns on capital over the business cycle.”
Our Methodology
We compiled a list of the 15 fastest growing cities in Tennessee based on data spanning from the 2020 US Census to 2024 population estimates. Our list excludes villages or any unincorporated area. The fastest growing cities in Tennessee have been ranked in ascending order of their average annual percentage change in population.
You can also check out the 10 Fastest Growing Cities in Kentucky here.
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15 Fastest Growing Cities in Tennessee
15. Manchester
Annual Percentage Increase: 2.8%
Manchester, Tennessee, has an average household income of $68,126 and a poverty rate of 16.47%. The racial makeup of Manchester is as follows: 81.96% White, 6.47% Black or African American, 6.18% Two or more races, 2.84% Other race, 1.53% Asian, and 1.01% Native Hawaiian or Pacific Islander. In terms of language, 92.63% of Manchester residents speak English, while 7.37% speak other languages. Among them, Spanish is the most spoken non-English language, used by 5.28% of the population.
14. Dunlap
Annual Percentage Increase: 2.99%
The average household income in Dunlap stands around $45,554. The racial composition of the city is predominantly White, accounting for 90.72% of the population, followed by 5.55% classified as other race, 1.52% Black or African American, and 1.36% Two or more races. Regarding language, the majority, 92.4% of Dunlap residents, speak only English, while 7.6% speak other languages.
13. Alcoa
Annual Percentage Increase: 3.02%
Alcoa, Tennessee, has an average household income of $78,761 and a poverty rate of 11.67%. Although the crime rate in Alcoa is 8.7% higher than the national average, other factors contribute to its inclusion on the list of cities experiencing the highest population growth. Authorities in Alcoa are prioritizing education, which serves as a significant attraction for families considering a move to the city. Alcoa invests $11,259 per student annually, with a yearly revenue of $25,517,000. Of this revenue, $7,152.8 million is allocated to instruction, $3,760.1 million to support services, and $520.6 million to other expenses.
12. Mount Juliet
Annual Percentage Increase: 3.26%
Mount Juliet, Tennessee, offers a variety of real estate options and is experiencing decent population growth, reflecting its appeal to residents. Many locals appreciate the family-friendly atmosphere of the city. Moreover, the city offers affordable living, with an average cost of $1,795 and a median after-tax salary of $3,543. Between 2020 and 2021, the median household income in Mount Juliet increased from $93,096 to $98,628, representing a growth of 5.94%. The average commute time in the city stands at 31.6 minutes, while the average car ownership per household is 2 cars.
11. Gallatin
Annual Percentage Increase: 3.39%
Gallatin, Tennessee, offers an easy commute to Nashville, making it an ideal choice for working families. The city has a vibrant community of retirees who are drawn to the area’s local country clubs and gated communities. Since 2010, Gallatin has experienced a nearly 50% increase in population, largely attributed to recent business expansion. Gap’s Gallatin warehouse has created hundreds of jobs in recent years, and in 2015, Italian gunmaker Barretta relocated its US production facility to the city.
10. Pleasant View
Annual Percentage Increase: 3.79%
Pleasant View, Tennessee, offers decent employment opportunities, as reflected by the 95.8% employment rate. The city also has a higher than national average median household income. Apart from this, the city offers a higher home affordability ratio. Public opinion, as reflected in surveys and polls, highlights Pleasant View’s reputation for safety, strong community bonds, and excellent public transit options.
9. Townsend
Annual Percentage Increase: 3.84%
Townsend, Tennessee, is known for its diverse animal life and plants. Nearly all residents of the city (98.63%) were born in the United States, with 40.99% being native to Tennessee. Among those not born in the United States, the largest group is from Europe. The town has experienced significant population growth, and the median household income has also increased from $70,701 to $74,408 as of 2021, showing a 5.24% rise over the preceding year.
8. Spring Hill
Annual Percentage Increase: 3.88%
Spring Hill has witnessed rapid growth within the county, having a current population of 60,301. Recent forecasts suggest that the city could potentially reach a population of about 7 million within the next 20 years. While this growth may raise concerns about its environmental impact and the quality of life for current residents, it also holds the promise of significant economic prosperity. Spring Hill is at the eighth position on our list of the fastest growing cities in Tennessee.
7. Columbia
Annual Percentage Increase: 3.9%
Columbia, Tennessee, has a population of 49,503, with an average household income of $73,923 and a poverty rate of 12.52%. The racial composition is 73.37% White, 17.13% Black or African American, 7.66% Two or more races, 0.95% Other race, 0.49% Native American, and 0.4% Asian. In terms of language, 93.2% of Columbia residents speak English, while 6.8% speak other languages. Among them, Spanish is the most spoken non-English language, used by 6.1% of the population.
6. Eagleville
Annual Percentage Increase: 3.96%
Surveys indicate Eagleville is a great place to live, as the cost of living is 26% lower than the national average. Apart from this, the violent crime rate in Eagleville is also lower than the national average. Furthermore, Eagleville is particularly attractive to families due to its excellent education system and welcoming atmosphere. Residents enjoy a rural ambiance, and the majority own their homes, contributing to the community’s stability. The city’s friendly environment also appeals to young individuals seeking a place to settle down.
5. White House
Annual Percentage Increase: 4.73%
White House, Tennessee has an average household income of $85,404 and a poverty rate of only 4.61% compared to the national US poverty rate of 11.5% as of 2022. The majority of residents in the city are White, comprising approximately 88.73% of the population, with the remainder comprising individuals of Black, Asian, and other races, as well as those identifying with two or more races. The White House has a strong education system, which is also a driving factor for its growing population.
4. Lenoir City
Annual Percentage Increase: 4.86%
Lenoir City, Tennessee, has an average household income of $62,973. The total expenses for a single adult in Lenoir City, including housing, food, childcare, transportation, healthcare, taxes, and other necessities, come to $33,854 per year. This is similar to the yearly cost of living in Tennessee, which is around $34,350 and lower than the national average of $38,433. In Lenoir City, about 39.51% of individuals are high school graduates, while 13.67% hold a bachelor’s degree.
3. Piperton
Annual Percentage Increase: 5.51%
Piperton’s small-town feel and friendly locals make it a prime spot for retirees seeking a peaceful life. Its proximity to big cities also makes commuting to work or school easy. Between 2020 and 2021, the city’s median household income increased from $103,000 to $110,682, reflecting a growth of 7.46%. Piperton is at the third position on our list of the fastest growing cities in Tennessee.
2. Lebanon
Annual Population Increase: 5.66%
Living in Lebanon offers a small-town vibe with lots of family-friendly activities, such as visiting farms, exploring downtown, and enjoying outdoor pursuits like hiking, swimming, and biking in parks. The city has a median age of 35.5 years and an average household income of $60,682.
1. Baxter
Annual Population Increase: 5.78%
Baxter’s rapid population increase can be attributed to various factors. The city has a cost of living that is 11% lower than the national average, making it an attractive option for many. Despite its small size, Baxter hosts schools within its limits, making relocation easier for families. Furthermore, the city’s proximity to major urban centers offers many opportunities for entertainment and employment. A significant majority of Baxter’s residents, 95.69%, speak English, with the remaining 4.31% conversing in other languages. Among these, Spanish is the most prevalent, spoken by 2.55% of the population.
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Disclosure: None. 15 Fastest Growing Cities in Tennessee is originally published on Insider Monkey.
