The Knoxville Area Association of Realtors (KAAR) released its monthly report on the city's housing market. Home sales increased 4.8% in August 2022 compared to the previous month, but not as much as last year. The median price of a home was up 19% compared to last year, costing $325,000. Nearly 33% of homes sold over the asking price and around 9.5% of homes sold were newly constructed. The report stated that declining affordability is the largest driver of housing moderation. Investors made up 13% of the sales market in 2021 and tended to buy properties in areas with high incomes and strong rental demands and large density of Black households. KAAR said that Knoxville's rental rates were up 19% compared to last year and mortgage lenders in Knox County are getting more applications from majority-minority census tracts. Young adults born between 1984 and 1992 in Knoxville were choosing to stay in the area. The number of people moving to Knoxville was more than double the number of people moving out.
For investors, the report indicates demand for newly constructed homes and a growing market for rental properties in Knoxville. The city has a large gap between the number of white homeowners and the number of Black and Hispanic homeowners, presenting an opportunity for investors to cater to a diverse market. The city also ranks among the top 100 U.S. metro areas for affordable and available rental units per 100 households.
