Tri-Cities, TN vs. Asheville, NC for an Amazing Second Home: 2025 Expert Guide

When buyers look at building a second home in the Tri-Cities of TN, they are often curious about another town that is on the other side of the mountain, Asheville, NC.  They often stand at a crossroads, looking at two different paths in the beautiful Blue Ridge Mountains. On one side, you have the cultural magnet of Asheville, North Carolina. On the other, you have the steady, sensible, and scenic Tri-Cities of Tennessee. If you are looking to buy a second home, this choice is about more than just a pretty view. It is about your money, your time, and the kind of life you want to lead when you aren’t at your main house.

When you look for a second home, you want a place that feels like an escape but also acts as a smart move for your future. Asheville offers a certain kind of fame and a busy arts scene. The Tri-Cities offers a more relaxed pace and some of the best financial benefits in the country. In this guide, I will walk you through the real facts of both areas so you can make the best choice for your family.

The Fiscal Divide: Tax Implications for Second-Home Owners

When you look at buying a second home, the first thing we need to talk about is the math. The biggest difference between Tennessee and North Carolina is how the government treats your income and your property.

Tennessee is a very “tax-friendly” state. We do not have a state income tax. This is a huge deal if you are still working or if you have a high retirement income. Every dollar you earn stays in your pocket rather than going to the state capital in Nashville. When you own a second home in the Tri-Cities, you are entering a system that values your personal wealth.

North Carolina, on the other hand, has a flat income tax of about 4.5%. While that might not sound like much at first, it adds up over the years. If you are using your second home as a place to eventually retire, that tax can take a big bite out of your savings.

Then there are the property taxes. In the Tri-Cities, places like Washington County or Sullivan County have very reasonable rates. Usually, your tax bill here will be significantly lower than what you would see in Buncombe County, where Asheville is located. Asheville has what I call “hidden costs.” Because it is a popular tourist spot, there are often extra fees for things like fire districts or city services that can surprise a new owner.

If you build a custom second home in Tennessee, you are also dealing with a state that is very “pro-builder.” This means the rules are clear, and the costs are predictable. In North Carolina, the rules can be a bit more complex, especially when you are building on the side of a mountain. Those complex rules often mean more fees and more time spent waiting for permits. For a second home, you want the process to be as smooth as possible.

Real Estate Market Dynamics (2025 Snapshot)

The year 2025 has brought some interesting changes to our local housing markets. For a long time, Asheville was the “hot” spot where prices only went up. But lately, we have seen a bit of a cool-down there. Inventory in Buncombe County has grown, which means there are more houses sitting on the market. For someone looking for a second home, this might seem like a good time to buy in Asheville because you have more room to negotiate.

However, the Tri-Cities market is much more stable. We didn’t see the massive, unsustainable price spikes that some other areas saw, which means our market is built on a solid foundation. In Johnson City and Kingsport, we are seeing a steady growth in home values. This makes a second home here a very safe place to put your money.

One thing that buyers need to look at is the “price per square foot.” In 2025, you can usually get a much larger and higher-quality second home in the Tri-Cities for the same price as a smaller, older house in Asheville. If you want a home with five bedrooms and a big garage for your boat, your dollar is going to go a lot further in Northeast Tennessee.

I would also look at the quality of the land. In Asheville, many of the best spots are already taken. This means if you want to build a new second home, you might have to deal with very steep land. Steep land requires “retaining walls” and special foundations that can add tens of thousands of dollars to your budget. In the Tri-Cities, we still have beautiful rolling hills and lakefront lots that are much easier and cheaper to build on. This allows you to spend your money on the “fun” stuff, like high-end kitchen counters or a big deck, rather than on extra concrete in the ground.

Lifestyle & Amenities: “Vibe” Check

Choosing a second home is ultimately about how you want to spend your Saturday mornings. Both areas are in the mountains, but the “vibe” is very different.

Asheville is known as “Beer City, USA.” It has a very busy downtown with street performers, art galleries, and world-class restaurants. It is a place that feels “cool” and “artsy.” If you love going to a different craft brewery every night or visiting the River Arts District to watch people blow glass, then Asheville might be the place for your second home. It is a city that is always “on,” with lots of tourists and events.

The Tri-Cities has a different kind of energy. It is more about the outdoors and a “hometown” feel. We have South Holston Lake and Boone Lake, which are incredible for boating and fishing. In fact, the South Holston River is one of the best places in the country for fly fishing. If your idea of a perfect second home involves a quiet morning on the water or a hike where you don’t see a hundred other people, then you will love it here.

We also have the “Birthplace of Country Music” in Bristol and a great local food scene in Johnson City that is growing every year. We have the amenities you need, like good grocery stores and hospitals, without the heavy traffic you find in Asheville. Driving around the Tri-Cities is easy. In Asheville, the traffic on I-26 and around the Biltmore area can get very frustrated, especially during the leaf-peeping season or the summer holidays. For a second home, you want to spend your time relaxing, not sitting in a traffic jam.

Investment Potential & Short-Term Rentals (STR)

Many people hope to rent out their second home on sites like Airbnb when they aren’t using it. This is where you really need to be careful. The rules for “short-term rentals” or STRs are very different in these two places.

Asheville has some of the strictest rental laws in the South. In many parts of the city, you are not allowed to rent out a whole house for less than 30 days. You can often only rent out a room while you are still living in the house. This makes it very hard to make money from your second home if you don’t plan to be there all the time. The city is very protective of its housing for local residents, which I understand, but it can be a headache for an investor.

The Tri-Cities is much more open to short-term rentals. While some neighborhoods have their own rules, the local governments in Johnson City and Kingsport are generally more “business-friendly.” This means you have a better chance of using your second home to generate some extra income when you are back at your primary residence.

Also, we have to talk about “market resilience.” After some of the big storms we have seen in the mountains over the last few years, people are looking at how well an area can bounce back. The Tri-Cities has a very strong infrastructure. Our power and water systems are reliable, and our roads are well-maintained. This gives people peace of mind when they buy a second home here. They know the property will be taken care of and that the community is built to last.

Questions about a Second Home

When people look for a second home, they usually have a few specific questions. Let’s tackle those now.

Is it cheaper to live in Asheville or Johnson City?

The short answer is Johnson City. When you look at the total cost of living, which includes taxes, groceries, utilities, and housing, Johnson City is usually about 15% to 20% cheaper than Asheville. For a second home owner, this means your “holding costs” are much lower. You will spend less every month just to keep the lights on and the grass cut.

Which state is better for retirement or a second home?

If you are looking at the long-term financial picture, Tennessee usually wins. The lack of state income tax is a massive benefit for retirees. Also, Tennessee offers a “Property Tax Freeze” for some seniors, which can help keep your costs predictable as you get older. North Carolina is a beautiful state, but you have to be prepared to pay a bit more for the privilege of living there.

Is Asheville still a good investment in 2025?

Asheville is still a famous place, and fame always has some value. However, because the prices are already so high, it is harder to see “big gains” in the future. The Tri-Cities is in a “growth phase.” We are seeing more people discover us every day. This means your second home in the Tri-Cities has a lot of room to grow in value as more people move to the area.

The Verdict: Which One Is Right for You?

So, how do you choose? I like to look at the “profile” of the buyer.

If you are the “Socialite” type, someone who loves high-end dining, shopping at boutique stores, and being in the middle of a busy, creative crowd, then you might find that Asheville is the best spot for your second home. You have to be willing to pay the higher taxes and deal with the traffic, but for some people, the “energy” of the city is worth it.

If you are the “Pragmatist” type, someone who values peace, quiet, and financial intelligence, then the Tri-Cities is your clear winner. Here, you can build a custom second home that is exactly what you want. You can enjoy the lakes, the mountains, and the friendly people without feeling like you are being overcharged.¹⁰ You get to keep more of your hard-earned money while still enjoying some of the most beautiful scenery in the world.

As a builder, I have a deep respect for the land in both areas. But if I were putting my own money into a second home today, I would look closely at Northeast Tennessee. The combination of low taxes, stable growth, and incredible outdoor access is hard to beat.

Key Takeaways for Your Search

• Taxes: Tennessee has no state income tax, while North Carolina has a flat tax.

• Building: Construction costs are often lower in the Tri-Cities due to easier terrain.

• Rentals: Tri-Cities is generally more friendly to short-term rental owners.

• Lifestyle: Asheville is urban and artsy; Tri-Cities is relaxed and outdoor-focused.

Buying a second home is a big step. It should be a place where you can breathe easy and feel proud of what you have built. Whether you choose the bustling streets of Asheville or the quiet ridges of the Tri-Cities, you are moving into one of the most special parts of the country.  If you are choosing the Tri-Cities for your second home, be sure to look at the list below.

Neighborhoods in the Tri-Cities, TN Area Where You Can Buy A Home