Your Guide To Tennessee's Hidden Gem
Current Market Overview
As of February 2025, the Knoxville housing market remains strong with a median home price of $382,067, representing a 5.1% increase compared to last year. The market is currently favoring sellers, with homes selling relatively quickly despite slight increases in average listing age to 49 days. Zillow data shows an even more robust growth pattern with the average Knoxville home value at $338,302, having increased 8.1% over the past year, with many properties going to pending status in approximately 5 days.
Looking ahead, experts predict that Knoxville home values will continue to rise in 2025, with a projected increase of around 7% by the end of the year. While not as dramatic as during the COVID years, this still represents solid appreciation for homeowners.
Housing Diversity & Neighborhood Options
Knoxville offers diverse housing options with single-family detached homes accounting for 53.50% of the city’s housing units. Other common housing types include large apartment complexes (32.97%), duplexes and converted apartments (7.33%), and row houses (4.84%).
The city features distinctive neighborhoods catering to various lifestyles:
- Downtown Knoxville: Downtown properties command premium prices, with a median selling price of $695K as of January 2025, representing a significant 37.1% increase year-over-year. Perfect for urban professionals seeking walkability and amenities.
- West Knoxville: Downtown properties command premium prices, with a median selling price of $695K as of January 2025, representing a significant 37.1% increase year-over-year. Perfect for urban professionals seeking walkability and amenities.
- North Knoxville: Charming historic homes with revitalized commercial districts.
- South Knoxville: Emerging area with more affordable options and proximity to outdoor recreation.
- Farragut: Upscale suburban community with top-rated schools and planned neighborhoods.
Investment Potential
Knoxville has experienced remarkable real estate appreciation, with property values increasing 154.53% over the last ten years—an average annual appreciation rate of 9.79%. This places Knoxville in the top 10% nationally for real estate appreciation, making it one of the best long-term real estate investments in America.
Lifestyle & Amenities
Knoxville offers residents an exceptional quality of life with:
Natural Beauty
Proximity to the Great Smoky Mountains National Park, numerous lakes, and urban greenways
Cultural Attractions
Downtown arts district, historic theaters, museums, and vibrant music scene
University Influence
University of Tennessee brings educational opportunities, sporting events, and cultural diversity
Four Season Climate
Mild winters and distinct seasons without extreme weather
Rental Market
For investors considering rental properties, the Knoxville rental market offers good opportunities. As of recent data, the average rent for apartments in Knoxville is approximately $1,307 per month, notably lower than the national average of $1,563. A one-bedroom apartment averages $1,307 monthly, while two-bedroom units average around $1,699. Single-family rental homes command higher rents, averaging $2,395 monthly.
Ready to find your dream home in Knoxville? Contact us today and let Worley Builders, Inc. help you make the move to a community you’ll love!