The Knoxville housing market continues to experience significant price growth as demand outpaces supply. According to a new report from the Knoxville Area Association of Realtors, home prices in Knox County rose 8% in February compared to the same month last year. At the same time, inventory levels have declined by over 20% compared to last year.
The tight housing market is putting pressure on both renters and potential home buyers in Knoxville. Renters are facing rising rents and fewer available units, while buyers are grappling with higher home prices and bidding wars in some areas. The median rent for a Knoxville apartment is up over 4% from last year, and Knoxville now ranks among the top 35 fastest-growing rental markets in the U.S., according to another report.
On the home-buying front, the limited supply of houses for sale has led to an uptick in multiple-offer situations, especially for properties under $300,000. While the Knoxville market remains significantly more affordable than national averages, some first-time home buyers and those with lower budgets are struggling in the current environment.
Local real estate experts expect demand and prices to continue to rise through at least next year due to Knoxville’s relative affordability and steady job and economic growth. While more construction of both single-family homes and apartments is on the horizon, new supply may be unable to keep up with increasing demand in the Knoxville region. Renters and buyers can expect a competitive landscape to endure, with the potential for some price relief if interest rates increase substantially.