According to data from February, average asking rents in Knoxville rose 12.8% year-over-year to $1,391. Occupancy in stabilized properties slipped slightly to 97.6% but remains very high. By comparison, the national average rent rose 4.8% to $1,702.
Knoxville’s unemployment rate was 3.3% in January, lower than Tennessee’s 3.5% and the U.S. rate of 3.4%. The job market added 20,400 positions over the past year, led by the trade, transportation and utilities sector. Major companies like 3M and Topgolf continue expanding in Knoxville.
The multifamily market saw no new deliveries or sales in February, following a record year in 2022. Last year, Knoxville’s multifamily stock grew 3.2%, over $422 million in properties traded hands, and the average price per unit jumped 22.5% to $185,535. However, nearly 2,750 new units remain under construction.
Strong demand, job growth and investment are driving Knoxville’s multifamily market to new heights. Rent growth is outpacing the national average, signaling the metro’s attractiveness to both renters and real estate investors. While deliveries slowed in February, the construction pipeline remains robust and should bring a healthy number of new units to the market this year. Overall, 2023 is shaping up to be another outstanding year for Knoxville’s apartment sector.