As Knoxville Metro Nears 1 Million Residents: What the Latest Housing Data Really Means
As the Knoxville metropolitan area edges closer to the significant milestone of one million residents, recent headlines have focused on the challenges tied to growth, including rising housing costs, increased homelessness, and the long-term strain of continued population growth.
These concerns are real, but they should not spark alarm. Knoxville’s economic landscape remains healthy, and the pace of growth has stabilized. While the bulk of in-migration occurred over the last five years, today’s population increase has slowed to a more sustainable 1.1% annually.
A Market Showing Signs of Relief
November delivered several encouraging indicators for East Tennessee homebuyers and sellers.
Total Home sales rose 1.3% month-over-month, 8.2% year-over-year, and 4.7% year-to-date.
Mortgage rates eased, and housing inventory increased, giving previously sidelined buyers a new opportunity to re-enter the market.
For the first time since 2020, the median home sale price dipped year over year, falling 1.9%. This is a small but meaningful signal that market pressures are beginning to normalize after several years of rapid appreciation.
These shifts suggest that the extreme competitiveness for homes from 2021 through 2023 is slowly giving way to a more balanced environment where homebuyers have more options and sellers can still benefit from strong, but stabilizing, demand.
Latest Home Sales Report
Market Highlights
Home sales: Up 8.2% year-over-year
Median sale price: Down 1.9% year-over-year
Total housing inventory: Up 19.8% year-over-year
Days on market: Up 33% year-over-year
Pricing strength:
37.6% sold at or above asking
16.8% sold above asking
8% sold for $10,000+ above asking
3.5% sold for $25,000+ above asking
Sale-to-list price ratio: 98.5%, up from 97.7%
New construction: 12.2% of total home sales
Inventory in the Greater Knoxville area now stands at 8,450 active listings—the highest level in more than five years.
What’s the Outlook?
As 2025 winds down, the Greater Knoxville market is finally capturing some of the pent-up momentum from earlier in the year. Sales have been climbing steadily through summer and fall, and the region is on pace to outperform 2024 by roughly 5%.
The slight 1.9% dip in median price is modest, but it marks the first decrease since 2020, suggesting the market is cooling into a healthier, more navigable phase. Inventory continues to build, giving buyers more breathing room than they’ve had in years.
Still, the long-term challenge remains: ensuring that housing is accessible not just to newcomers but also to Knoxville’s current residents.
