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2023 State of Housing Report

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.