KNOXVILLE, Tenn. — Home prices in East Tennessee are rising higher faster than incomes, according to the Knoxville Area Association of Realtors. Rising prices of everything from food to rent are reducing the city's affordability, they said.
They met with county leaders on Tuesday to discuss housing solutions over dinner and warned that the problem could worsen soon. They said part of the problem is a lack of housing being built that families in Knoxville can afford. They said it has been a problem for a while, and the city hasn't met the housing demand for more than a decade.
"A lot of people say, 'We don't want to be like that high-cost city,' but ultimately if we don't act now and if we don't plan now to build more housing, we're going to find ourselves in a place we don't want to be," said Hancen Sale with KAAR. "Longtime residents can't afford to purchase a home in Knoxville, or even be able to afford rent, that's been up dramatically in the past two years."
He also said two factors are contributing to housing problems in Knoxville. More people are moving to East Tennessee from higher-cost areas, bringing funds with them to outprice residents who are already in the area. He also said the cost of building more homes is rising for the same reason as almost everything else — inflation.
As prices rise, developers may be discouraged from building homes that people can afford.
Now, households with average incomes are competing for smaller percentages of homes in Knoxville's housing market.
Nicole Knowlton, who formerly lived in New York, said that she is trying to find an apartment in Knoxville. Her current lease in Lenoir City is ending soon, and she said she is at risk of having no place to live.
"I'm trying to find a place, that's been a huge problem," she said. "This kind of reminds me of what it's like back home."
She said her rent budget is around $1,200, and she is still struggling to find somewhere to live.
"I think they should be a little bit more lenient and lower the prices some so people can not worry about being homeless because that's where it's headed," she said.
On average, renting a one-bedroom apartment in Knoxville costs just under $1,300. Experts said they believe the only way to keep prices from continuing to climb is by building more places to live.