• Why are housing prices soaring so much right now? In Chattanooga? In America? In The World?
• Lower interest rates are one factor that's driving home purchases up. Easier money means = increased demand. Increasing prices lead to a disparity in income to home price, making it harder for people to buy properties: https://www.longtermtrends.net/home-price-median-annual-income-ratio/

Excerpt from a local Facebook group:

• Chattanooga has a serious housing problem, and pictured is just one of the reasons why. Below are 5 homes purchased by a newly formed LLC in less than a week. Local homebuyers are routinely outbid by real estate investors from hundreds and even thousands of miles away with far greater resources.
• I tracked this LLC back to Philadelphia, where their parent group touts the profits that can be made from "DEMs" (Domestic Emerging Markets).
• They explain: "DEMs are urban neighborhoods on the verge of gentrification in larger cities. These lower income areas are typically close to city centers or transportation hubs, have minimal acquisition costs, and thus greater potential for property appreciation. Our DEM development strategy currently involves acquiring “infill” properties in emerging markets believed to be transitioning into SCMs (Supply Constrained Markets).
• In examining one of these homes, I found that if sold to a local, first time home-buyer with solid credit, the monthly payment would be around $900 (including PMI and homeowners insurance). Instead, this home is now being rented for $1,495, and managed by a company from... you guessed it, Philadelphia.
• There are a number of ways to keep capital local and keep out these outside investment groups. I urge you to chat with your city council representative about how we can leverage financial incentives for locals and financial penalties for whomever the next LLC of the week might be. I'll throw a link to one potential path forward in the comments.