Housing supply

Prices rise as demand in the Knoxville housing market increases and housing supply decreases

KNOXVILLE, Tenn. (WVLT) — A new report from the Knoxville Area Association of Realtors has shown that home prices and rents are getting too expensive for many Knoxville residents.

Knoxville was once seen as an affordable place to live, but that is rapidly changing, according to association spokesperson Hancen Sale.

“Knoxville is on the map. People are moving here at a rate we’ve never seen before and so there’s a ton of demand for housing that the limited supply has started to push prices up in ways we really haven’t seen said Sale.

The report says someone earning $75,000 or less can only afford a third of the listings on the market.

“When the Great Recession of nearly a decade ago came back, we stopped building houses at the rate we were at. So we underbuilt homes for most of the decade, and that left us with this huge housing deficit, Sale said. “About ten years ago it was around $180,000 for a median priced home, at this point in the early months of 2022 in the county we see the median price hovering around 300,000.”

Sale said the Knoxville Area Association of Realtors predicts continued price growth in the teen to mid-teen range, which means another year of double-digit growth for homes and another year of strong rental growth among teenagers.

People shouldn’t spend more than 30% of their income on housing, according to Sale.

He talked about a solution called the green band program that created a database of vacant and abandoned properties, helping to bring them to market.

“The report offered a number of solutions ranging from a green ribbon program that speeds up the process of reviewing desirable housing development to creating a database of vacant and derelict properties to help bring them back into line into productive uses,” he said.

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