KNOXVILLE, Tenn. — According to a report from the National Association of Realtors, rent growth in Knoxville grew faster than in any other U.S. city in 2022. The report said the group expected prices to rise faster than in cities like Asheville, Fort Myers and Charleston.
According to the report, the rate of rent growth in Knoxville was 9.6% in 2022, beating out Fort Myers' rate which rose by 9.1%. According to the Knoxville Area Association of Realtors, only around 28% of Knoxville renters searching for a place to live were looking to move outside the city.
Knoxville was at No. 11 for all U.S. metro areas with the highest inbound migration rate. KAAR said most renters moving to Knoxville were from Nashville, Charlotte and Atlanta. It also said more people were moving from Nashville to Knoxville than the other way around, indicating a reversal in a trend where more people would leave Knoxville to move to Nashville.
Occupancy rates in Knoxville also stayed high, hovering around 96.5% in January 2023 compared to 94.8% nationally, according to KAAR.
It also said Knoxville was among the top five metro areas nationally for homebuyers looking to stay in the area. It said around 40% of Knoxville homebuyers were searching for houses in other areas in Q4 2022, compared to 44.7% in Q4 2021.
However, it said households in the area needed to make at least $90,331 per year for a mortgage on a median-priced home with a 10% down payment. It said in the fourth quarter of 2022, the median price of a Knoxville home was $318,700.
It said that compared to 2019, homes in the area cost around $115,000 more.
The number of home sales increased by 1.8% in January compared to the previous month but was down 23.6% compared to last year. It said half of the homes sold were under contract in 25 days or less, an increase of 16 days compared to the previous month.
Around 18% of homes sold for more than the asking price, and new construction represented around 12.6% of all home sales, according to the report.
It also said that the average fixed-mortgage rate was around 6.5% for the week ending Feb. 23, resulting in monthly payments up by more than $600 compared to the previous year. It said the rising price of mortgages has discouraged some homebuyers and home sellers.
KAAR said around 85% of mortgage holders are locked in with rates below 6%.