Knoxville Market Report
Knoxville Insights & Trends
Knoxville, Tennessee, is a city rich in history, culture, and economic vitality. Nestled in the foothills of the Great Smoky Mountains, Knoxville offers a blend of urban sophistication and natural beauty. This report aims to provide a thorough analysis of Knoxville’s demographics, real estate market, economic landscape, and key neighborhoods, offering valuable insights for potential investors, residents, and policymakers.
Knoxville Demographics & Population
Current Population
As of 2024, Knoxville's population stands at approximately 200,400, reflecting steady growth from 191,446 in 2020. This annual growth rate of about 1.13% indicates a stable increase in the number of residents over recent years.
Population Density
Knoxville has a population density of roughly 2,030 people per square mile. This density provides an urban feel while maintaining ample green spaces and parks for residents and visitors to enjoy, contributing to a balanced lifestyle.
Knoxville Population
Demographic Breakdown
The racial and ethnic composition of Knoxville is diverse, with 73.9% White, 16.11% Black or African American, 6.43% identifying as two or more races, and smaller percentages of other racial groups. The median age is 33.4 years, with a slightly higher proportion of females (51.49%) compared to males (48.51%).
Educational Attainment
Knoxville boasts strong educational credentials, supported by institutions like the University of Tennessee. High school graduates make up 27.88% of the population, with 20.55% having some college education, 20.32% holding a bachelor’s degree, and 12.8% possessing a graduate degree. This educational landscape contributes to a well-educated populace, fostering economic and social growth.
Knoxville Demographics Overview
Knoxville Demographics
White: 73.9%
Black or African American: 16.11%
Two or more races: 6.43%
Other races: 1.81%
Asian: 1.56%
Native American: 0.15%
Native Hawaiian or Pacific Islander: 0.04%
Median Age: 33.4 years
Male: 32.2 years
Female: 34.8 years
Gender Ratio
Female: 51.49%
Male: 48.51%
High school graduates: 27.88%
Some college: 20.55%
Bachelor’s degree: 20.32%
Graduate degree: 12.8%
Race and Ethnicity
Age & Gender Distribution
Educational Attainment
Real Estate Market Analysis
Current Trends
In 2024, Knoxville’s real estate market remains dynamic and competitive. The median home price stands at $350,497 as of March 2024, marking an 8.5% increase compared to the previous year. This steady rise makes Knoxville one of the top cities in the U.S. for increasing home values.
Knoxville Real Estate Market
Knoxville Market Trends & Predictions
Seller’s Market: Knoxville continues to be a seller’s market, with demand outpacing supply. Homes typically sell quickly, with the median days on the market being around 29 days.
Price Appreciation: Over the past decade, the city has experienced a 141.4% appreciation in home values, averaging an annual growth rate of 9.21%. This makes Knoxville attractive to long-term investors.
Inventory Levels: Despite an increase in housing inventory compared to last year, levels remain low by historical standards, continuing to put upward pressure on home prices.
Recent Home Sales: In June 2024, the median home sales price was $335,000, a 4.7% increase from the previous year. Homes generally sell close to their listing prices, often within a few percentage points above or below.
Knoxville Average Listing Price
Factors Influencing Market Dynamics
Economic Conditions
Employment Rates: The health of Knoxville’s job market significantly impacts real estate demand. Low unemployment rates and steady job creation enhance consumer confidence and increase the purchasing power of potential homebuyers. The city's diverse economy, with strong sectors such as advanced manufacturing, technology, healthcare, and education, provides a stable employment environment.
Wage Growth: Average wages in Knoxville vary by industry, but competitive earnings in key sectors like technology, healthcare, and manufacturing drive housing demand. Higher wages increase individuals' ability to afford homes, boosting market activity.
Gross Domestic Product (GDP) Growth: Steady GDP growth, reflecting overall economic health, positively influences the real estate market. Knoxville’s GDP has been on an upward trajectory, driven by investments in manufacturing, technology, and healthcare, fostering a robust real estate market.
Factors Influencing Knoxville Real Estate
Demographic Trends
Population Growth: Knoxville’s population growth, with a steady annual increase of about 1.13%, drives housing demand. A growing population requires more housing units, spurring new developments and increasing property values.
Age Distribution: The median age in Knoxville is relatively young at 33.4 years, indicating a dynamic, youthful population. Younger demographics often seek starter homes and rental properties, influencing market demand for affordable housing and apartments.
Household Formation: The formation of new households, driven by factors such as marriage, children, and immigration, increases demand for housing. Knoxville’s family-friendly neighborhoods like West Hills and Loveland are particularly attractive to new households.
Interest Rates
Mortgage Rates: Interest rates set by the Federal Reserve impact mortgage rates, directly affecting affordability. Lower interest rates reduce the cost of borrowing, making mortgages more affordable and stimulating housing demand. Conversely, higher interest rates increase borrowing costs, which can cool the housing market by making loans more expensive.
Market Sentiment
Consumer Confidence: Consumer confidence plays a crucial role in the housing market. When people are optimistic about their economic future, they are more likely to invest in homes. High consumer confidence often leads to increased housing demand and rising prices.
Investment Trends: In times of economic stability, there is often a surge in real estate investment as people seek to capitalize on rising property values. Conversely, during economic uncertainty, investment may slow, affecting market activity.
Average Mortgage Rate
Buyer Trends
The Knoxville real estate market has seen significant buyer activity characterized by competitive dynamics, diverse neighborhood preferences, and shifting market conditions. Understanding these trends is essential for prospective buyers looking to navigate the market effectively. Here’s a detailed look at the current buyer trends in Knoxville:
High Demand & Limited Inventory
The Knoxville real estate market continues to experience high demand and limited inventory. This trend creates a competitive environment where buyers must act quickly to secure desirable properties.
Quick Sales: Properties in Knoxville often sell rapidly, with the average time on the market being around 29 days. This swift turnover highlights the necessity for buyers to be prepared to make prompt decisions.
Competitive Offers: In such a high-demand market, multiple offers on properties are common. Buyers frequently need to offer at or above the asking price to remain competitive.
Buyer Trends in Knoxville Real Estate
Rising Home Prices
Home prices in Knoxville have been steadily increasing, driven by robust demand and limited supply.
Median Home Price: As of March 2024, the median home price in Knoxville was $350,497, reflecting an 8.5% increase from the previous year. This appreciation indicates a strong market but also challenges affordability for many buyers.
Long-term Appreciation: Over the last decade, Knoxville has experienced a 141.4% appreciation in home values, with an average annual growth rate of 9.21%. This trend makes Knoxville attractive for long-term investment.
Seller Trends
The Knoxville real estate market remains highly favorable for sellers, characterized by strong demand, rising home prices, and rapid sales. Understanding the key trends that influence sellers can help maximize returns and navigate the market effectively. Here’s a comprehensive look at the seller trends in Knoxville:
High Demand & Limited Inventory
Knoxville continues to experience a strong seller’s market due to high demand and limited housing inventory.
Quick Sales: Homes in Knoxville are selling rapidly, often within 29 days of listing. This quick turnaround time benefits sellers looking for efficient transactions.
Competitive Offers: The competitive market environment means that sellers frequently receive multiple offers, often above the asking price, which can drive up final sale prices.
Rising Home Prices
Home prices in Knoxville have seen significant appreciation, providing an advantageous position for sellers.
Median Home Price: As of March 2024, the median home price in Knoxville was $350,497, an 8.5% increase from the previous year. This consistent price growth reflects a healthy market and increases seller profits.
Long-term Appreciation: Knoxville has experienced a 141.4% appreciation in home values over the last decade, averaging an annual growth rate of 9.21%. This trend makes it an opportune time for sellers to capitalize on high property values.
Seller Trends in Knoxville Real Estate
Market Dynamics
Seller's Market Conditions: Knoxville remains a strong seller’s market with demand consistently outstripping supply. This imbalance continues to push home prices higher and reduces the time homes spend on the market.
Inventory Levels: Although there has been a slight increase in housing inventory compared to last year, the levels remain low by historical standards. Limited supply maintains upward pressure on prices and sustains the seller’s market conditions.
Economic Factors Impacting Sellers
Interest Rates: Rising interest rates can impact buyer affordability, potentially slowing demand. However, the current strong demand in Knoxville continues to favor sellers.
Inflation: Inflation affects the cost of building materials and labor, which can lead to higher home prices. Sellers can benefit from this trend as it drives up property values.
Economic Growth: Knoxville’s steady economic growth, low unemployment rates, and competitive wage trends support a healthy real estate market, providing a favorable environment for sellers.
Knoxville Median Days On Market
Nashville's neighborhoods vary widely in terms of pricing and demand. Green Hills, Inglewood, and West Meade are among the most desirable areas, offering a mix of luxury properties and more affordable options. Sylvan Park, known for its higher median listing price of $1.7 million, attracts buyers seeking upscale living. In contrast, neighborhoods like Heron Walk, with a median listing price of $415,000, provide more budget-friendly housing options. Each neighborhood's popularity significantly impacts housing prices and market activity.
Sequoyah Hills
Sequoyah Hills: Unique Features, Amenities, and Market Insights
Sequoyah Hills is a picturesque neighborhood known for its beautiful waterfront views along the Tennessee River and its historic homes. The area features a mix of architectural styles, including Tudor Revival and Colonial Revival, adding to its unique charm. Residents enjoy access to Sequoyah Park and Cherokee Boulevard, offering ample opportunities for outdoor activities.
The real estate market in Sequoyah Hills is highly competitive, with a median sale price around $800,000. The neighborhood's scenic location and historic appeal contribute to quick sales and strong appreciation rates, making it a sought-after area for discerning buyers.
Characteristics: Known for its beautiful waterfront views along the Tennessee River and historic homes.
Amenities: Sequoyah Park, Cherokee Boulevard, and proximity to the Tennessee River.
Real Estate Trends: Median sale price around $800,000. The neighborhood is highly sought after, leading to quick sales and strong appreciation rates.
South Knoxville
South Knoxville: Blend of Urban and Suburban Living, Housing Trends
South Knoxville offers a unique blend of urban and suburban living, with a variety of housing options, including single-family homes, townhouses, and apartments. The neighborhood is known for its outdoor recreational opportunities, with parks like Fort Dickerson Park and Baker Creek Park providing hiking trails and scenic views.
Real estate trends in South Knoxville show a median sale price around $274,950. The area is gaining popularity due to its affordability and proximity to outdoor activities, leading to increased demand and a vibrant housing market.
Characteristics: Offers a mix of urban and suburban vibes with a variety of housing types.
Amenities: Parks like Fort Dickerson Park and Baker Creek Park.
Real Estate Trends: Median sale price around $274,950. The area is gaining popularity due to its affordability and proximity to outdoor activities.
Rocky Hill
Rocky Hill: Suburban Charm and Real Estate Dynamics
Rocky Hill is a suburban neighborhood that exudes charm with its beautiful homes and tree-lined streets. The area offers a peaceful suburban feel while providing easy access to urban amenities such as Turkey Creek shopping center and Lakeshore Park.
The median sale price in Rocky Hill is around $715,000, reflecting high demand and appreciation rates. The neighborhood’s appeal lies in its suburban charm and well-maintained properties, making it a desirable place to live.
Characteristics: Suburban neighborhood with beautiful homes, tree-lined streets, and easy access to urban amenities.
Amenities: Turkey Creek shopping center, Lakeshore Park.
Real Estate Trends: Median sale price around $715,000. The area experiences high demand and appreciation due to its suburban charm and amenities.
West Hills
West Hills: Overview of Family-Friendly Environment and Real Estate Market
West Hills is characterized by its suburban feel, featuring traditional brick homes and contemporary designs. It is a family-friendly neighborhood known for its peaceful environment and excellent amenities, including West Hills Park and West Town Mall. The presence of several local schools adds to its appeal for families.
The median sale price in West Hills is approximately $534,750, with the market showing stable growth and moderate price appreciation. The area attracts families seeking a suburban lifestyle with convenient access to green spaces and essential amenities.
Characteristics: A suburban feel with traditional brick homes and contemporary designs.
Amenities: West Hills Park, West Town Mall, and several local schools.
Real Estate Trends: Median sale price approximately $534,750. The market is stable with moderate price appreciation.
Downtown Knoxville
Downtown Knoxville: Characteristics, Amenities, and Real Estate Trends
Downtown Knoxville serves as the vibrant nucleus of the city, blending historic charm with modern sophistication. The area is renowned for its cultural and commercial vibrancy, featuring landmarks like Market Square and the Tennessee Theatre. Downtown Knoxville attracts young professionals and those seeking an urban lifestyle with its myriad of bars, restaurants, and shops.
Real estate trends in Downtown Knoxville indicate a dynamic market with high demand and competitive pricing. The median sale price for homes typically falls in the mid to high $200,000s, with properties selling quickly, often at or above listing prices. The area’s appeal continues to grow, fueled by ongoing development projects and a thriving local economy.
Characteristics: A bustling urban area with a mix of historic and modern buildings, attracting young professionals and those who enjoy vibrant city life.
Amenities: Home to Market Square, the Tennessee Theatre, numerous bars, restaurants, and shops.
Real Estate Trends: Median sale price typically in the mid to high $200,000s. Properties sell quickly due to high demand.
Knoxville Neighborhood Breakdown
Parkridge
Parkridge: Historic Homes and Market Characteristics
Parkridge is known for its historic homes and green spaces, featuring architectural styles ranging from Craftsman bungalows to Queen Anne-style houses. The neighborhood offers scenic parks like Parkridge Park and Caswell Park, enhancing its residential appeal.
The median sale price in Parkridge is approximately $294,500. The area sees steady demand with significant interest in its historic and architectural value, making it a favorite among buyers who appreciate heritage properties.
Characteristics: Known for its historic homes and green spaces.
Amenities: Parkridge Park, Caswell Park.
Real Estate Trends: Median sale price approximately $294,500. The neighborhood sees steady demand with significant interest in its historic value.
Vestal
Vestal: Central Location and Real Estate Trends
Vestal is a centrally located neighborhood known for its rich history and diverse housing options, including single-family homes, townhouses, and apartments. Its proximity to downtown and the University of Tennessee makes it an attractive location for residents.
The median sale price in Vestal is around $295,000, with high demand driven by its central location and historic character. The neighborhood offers a blend of convenience and cultural richness, appealing to a wide range of buyers.
Characteristics: Central location with a rich history.
Amenities: Mary Vestal Park, proximity to downtown and the University of Tennessee.
Real Estate Trends: Median sale price around $295,000. High demand due to its central location and historic character.
Loveland
Loveland: Family-Friendly Atmosphere and Housing Market
Loveland is a suburban neighborhood that features a mix of single-family homes and condos, known for its peaceful environment and family-friendly atmosphere. The area is close to local schools and parks, making it ideal for families.
Homes in Loveland typically sell for around $275,000, with the market showing moderate competition and stable appreciation rates. The neighborhood’s appeal lies in its tranquility and family-oriented amenities.
Characteristics: Family-friendly suburban neighborhood.
Amenities: Local schools, parks.
Real Estate Trends: Homes typically sell for around $275,000. The market is moderately competitive with stable appreciation rates.
Knoxville Active Listing Count
Knoxville’s Education Sector
Primary and Secondary Education:
Public Schools: Knoxville’s public school system is managed by Knox County Schools, one of the largest school districts in Tennessee. It operates over 90 schools, including elementary, middle, and high schools, serving a diverse student population.
Elementary Schools: These foundational institutions focus on early childhood education, providing students with essential literacy, numeracy, and social skills. Notable elementary schools include Sequoyah Elementary and West Hills Elementary.
Middle Schools: Middle schools in Knoxville bridge the gap between elementary and high school, offering a more diverse curriculum that includes basic sciences, mathematics, language arts, and social studies. Schools such as Bearden Middle and Holston Middle are well-regarded.
High Schools: Knoxville's high schools, such as Bearden High School and Farragut High School, offer comprehensive education programs that prepare students for college and careers. They provide advanced placement (AP) courses, honors programs, and various extracurricular activities.
Higher Education:
University of Tennessee, Knoxville (UTK): The flagship institution of the University of Tennessee system, UTK is a major public research university located in Knoxville. It is the largest university in the state and is renowned for its comprehensive academic programs, research contributions, and community engagement.
Academic Programs: UTK offers over 300 undergraduate and graduate programs across various fields, including engineering, business, law, education, and the arts. The university is particularly noted for its College of Engineering, Haslam College of Business, and College of Law.
Research and Development: UTK is a hub for research activities, supported by significant funding from federal agencies, private sector partners, and other institutions. Key research areas include energy, materials science, and agricultural sciences
Knoxville, Tennessee, is renowned for its strong educational framework, characterized by a diverse array of institutions that cater to different levels of education and fields of study. The city's commitment to education is evident in its array of public schools, private institutions, and higher education facilities. Here’s an in-depth look at the various components of Knoxville's education sector:
Primary and Secondary Education:
Private Schools: In addition to public schools, Knoxville hosts a number of private schools that offer alternative education options, including religious and secular institutions. Notable private schools include:
Webb School of Knoxville: A well-known private, co-educational school offering a rigorous college-preparatory curriculum from kindergarten through 12th grade.
Knoxville Catholic High School: A prominent Catholic school providing a faith-based education with strong academic and extracurricular programs.
Knoxville Economic Landscape
Key Industries: Overview of Major Industries
Key Industries: Knoxville’s economy is diverse, with major industries including manufacturing, technology, construction, education, healthcare, retail, and hospitality. Manufacturing and technology sectors are particularly strong, supported by the presence of Oak Ridge National Laboratory and the University of Tennessee.
Manufacturing: Knoxville has a strong manufacturing base, particularly in advanced manufacturing sectors such as semiconductor and battery production. The federal Chips and Science Act has significantly boosted this sector, providing substantial subsidies for semiconductor manufacturing.
Technology: The tech sector is growing, with significant investments in research and development, particularly related to energy and materials sciences. The presence of Oak Ridge National Laboratory nearby fosters innovation and attracts tech talent.
Construction: Knoxville's construction industry remains robust, driven by strong demand for residential properties and publicly funded infrastructure projects.
Education: The University of Tennessee is a major employer, contributing significantly to the local economy through student and faculty spending, as well as fostering innovation and research.
Healthcare: Major hospitals and healthcare providers offer a range of services, providing stable employment opportunities and contributing to the city's economy.
Retail and Hospitality: Knoxville's retail sector benefits from both local and regional consumers, with major shopping destinations like Market Square and Turkey Creek. The city's tourism and hospitality industry thrives on its cultural and natural attractions.
Economic Indicators: Analysis of GDP Growth, Employment Rates, and Wage Trends
Knoxville’s GDP has been on an upward trajectory, reaching approximately $58.9 billion in 2022. This growth reflects the city’s expanding economic activities across various sectors. The civilian labor force in Knoxville has shown steady growth, with employment figures increasing and the unemployment rate remaining low at 2.6%. Average wages vary by industry, with higher earnings noted in technology, healthcare, and advanced manufacturing sectors.
Knoxville Total GDP
Challenges and Opportunities
Labor Shortages: Impact and Potential Solutions
Labor shortages are a significant challenge, particularly in skilled trades and manufacturing sectors. These shortages can hinder the growth of key industries, leading to project delays and increased labor costs. Efforts to attract and retain talent are crucial for sustaining growth.
Inflation and Economic Stability: Current Trends and Effects on the Economy
Rising inflation and interest rates pose significant challenges, impacting the cost of goods and services, borrowing costs, and consumer purchasing power. However, Knoxville’s diverse economic base and continuous investments in key industries provide a buffer against these uncertainties.
Affordable Housing: Challenges and Potential Solutions
The increasing cost of housing is a pressing issue, with rising home prices and rents outpacing wage growth. This affordability crisis can lead to a lack of accessible housing for low- and middle-income residents, exacerbating socioeconomic disparities.
Economic Diversification: Importance and Strategies for Further Diversification
While Knoxville’s economy is diverse, further efforts to attract and develop new industries are essential for economic resilience. This includes leveraging opportunities in advanced manufacturing, technology, and renewable energy sectors.
Knoxville Unemployment Rate
Knoxville Job Market
Knoxville’s economy is characterized by resilience and growth, supported by a mix of traditional industries and emerging sectors. The city's economic health is underpinned by strong performances in manufacturing, construction, education, healthcare, and retail.
Labor Market: Detailed Analysis of Employment Trends and Labor Shortages
Knoxville's labor market is robust, with low unemployment rates and steady job creation across various sectors. However, labor shortages, particularly in skilled trades and construction, present challenges that need addressing through training programs and incentives.
Sector-Specific Insights
Advanced Manufacturing: This sector benefits from national policies promoting domestic manufacturing, with significant investments in new manufacturing plants and expansion of existing facilities.
Construction: Continued demand for residential and commercial construction is supported by public infrastructure projects.
Healthcare: Expanding healthcare services and facilities to meet the needs of a growing population.
Technology and Innovation: Growth driven by investments in research and development, particularly related to energy and materials sciences.
Economic and Real Estate Forecasts
Economic Forecasts:
GDP Growth Projections: Knoxville's GDP is expected to continue its upward trajectory, driven by ongoing investments in key sectors.
Employment Trends: The job market is projected to remain strong, with steady job creation in manufacturing, healthcare, education, and technology.
Population Growth: Knoxville’s population is projected to grow steadily, supporting local demand for housing and services.
Knoxville Market Outlook
The future economic and real estate prospects for Knoxville are optimistic. The city's GDP is projected to continue growing, driven by ongoing investments in key sectors such as advanced manufacturing, technology, and healthcare. The job market is expected to remain strong, with steady employment growth and low unemployment rates. Population growth will further support local demand for housing and services.
In the real estate market, home prices are anticipated to continue appreciating, although at a potentially slower rate compared to previous years. The rental market is also expected to see growth, driven by ongoing population growth and the influx of new residents. Knoxville remains an attractive market for real estate investors due to its strong appreciation rates and economic stability.
Addressing labor shortages through training programs and incentives, managing inflation and interest rate impacts, and enhancing affordable housing options will be critical for maintaining and enhancing Knoxville's economic resilience. Continued efforts to diversify the economy and invest in infrastructure, renewable energy, and tourism will further bolster the city's long-term growth prospects.
Knoxville's combination of a vibrant economy, diverse neighborhoods, and high quality of life positions it as a city with significant opportunities for residents, investors, and businesses alike. As the city continues to grow and evolve, it will remain a dynamic and attractive place to live, work, and invest.
