Explore how supply and demand, population trends and economic conditions are affecting the East Tennessee housing market with the latest data provided by East Tennessee REALTORS®.

Whether you’re a member, resident or policymaker, this comprehensive analysis explains what you need to know to make informed decisions.

Key Findings and Expectations

• Home price growth is decelerating but remains above the historic average. Home prices in the Knoxville metropolitan area rose 15.9% from the previous year in Q4 2022, according to the FHFA House Price Index (HPI)
• Rent growth remains high, although rent increases have moderated in recent weeks, with rents in the Knoxville metropolitan area up 14.06% from the previous year in Q4 2022 – outpacing the rent growth of 6.60% nationally during the same period.
• After a record-breaking year in 2021, home sales declined 9% year-over-year in 2022. The deceleration in home sales will likely continue this year, with home sales forecasted to decline between 10% and 12% in 2023.
• Despite the expected decline in home sales due to deteriorating affordability conditions, a lack of inventory continues to place upward pressure on prices, with home prices forecasted to increase between 3% and 5% in 2023. • Knoxville’s rental market is poised to experience moderate growth in 2023, with rents forecasted to grow around 4% next year.
• After reaching an all-time high of 98.86% in Q4 2021, the rental occupancy rate is forecasted to decline to an average of 96.5% in 2023.