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Knox County reports two-thirds of people in area can't afford to be a homeowner

Data shows that the median sale price of a home in Knox County is around $315,000 — a 14% increase compared to last year.

KNOX COUNTY, Tenn. — Note: This article was updated on Dec. 16 to correct the spelling of Hancel to Hancen.

Knox County leaders said that according to research, rises in the cost of living in Knox County have caused homelessness to spike across the area.

The KnoxHMIS system, which collects data about homelessness in Knoxville and Knox County, said more than 76% of people seeking help were from the area. More than half of them said that the main reason they were homeless was that they simply couldn't afford a home.

According to Knox County data, around two-thirds of people in the area can't afford the price of a home. They said the median sales price of a home is around $315,000 — a 14% increase from the previous year.

According to a report, the typical home is only affordable for households with an income of at least $84,651 per year. The median household income level is $56,857 per year, according to the report, so only around a third of people can afford to be a homeowner in the area.

Knox County Grants and Community Development department also said that the rising cost of living is leading to more people living in their cars, sleeping in homeless shelters, or simply staying on the street.

"Not only is it hard to find a home you can afford — it is hard to find a home at all," said Hancen Sale, with the Knoxville Area Association of Realtors.

KAAR also said the price of rent in Knoxville has gone up by 15.8% compared to November 2021, and occupancy rates were also extremely high. They also said home sales in the Knoxville area were down by around 4.8% year-to-date.

They also said the price of rent in Knoxville was climbing at almost double the national rate.

The rising prices have led to more camps for unsheltered people set up in Knox County, outside the city limits, according to a report from the grants and community development department.

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