Located in East Tennessee, Knoxville, is one of the fastest-growing cities in the country, with a population of over 188,085. And since 2000 the metro Knoxville area has seen an increase in population by nearly 6.4%. With all this growth happening, many people want to know more about the Knoxville housing market statistics for 2021 and what it’s like to live here. Read on for some information about the real estate in Knoxville, TN!
Knoxville Real Estate Market Overview
The Knoxville real estate market is doing well because of a few key reasons, such as low cost of living, low cost of houses, and low rental costs.
The average cost of living in Knoxville is 18% lower than the national average, making it a very desirable place to live for those looking for affordability.
The average cost of a house in Knoxville is $280,475, which is significantly lower than other large metropolitan cities. However, the median list prices are rising in Knoxville and are expected to continue doing so as the city grows.
The average rental cost of an apartment in Knoxville is $1274, which is also lower than many other major cities.
Foreclosures are also down in Knoxville, so overall the Knoxville housing market is doing well in 2021.
Below we’ll take a further look at the Knoxville housing market trends for 2021.
Cost of Living Knoxville
As of 2021, the average cost of living in Knoxville is 18% below the national average. For goods and services, Knoxville is 11% below the national average. As for housing, Knoxville is 30% below the national average.
Below is a breakdown of where Knoxville, Tennessee, and the National average rank.
|Cost of Living
|Goods and Services
*Data from AreaVibes Inc.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than the national average. If the cost of living is 110, then it is 10% higher than the national average.
Cost of Houses in Knoxville
The average cost of a house in metro Knoxville is $280,475, which has gone up 26.2% for the past year. Compared to the national average, the median sale price of houses in Q3 2021 reached $404,700.
Knoxville does have a range of home sales prices. The highest house price currently on the market in Knoxville is $6.5 million. The lowest home price is around $60,000- for a home in livable condition. There are homes available for less than that but are fixer-uppers needing significant repairs.
Rent Costs in Knoxville
The average rent for a house in Knoxville is $1,440, the average rent for a 1-bedroom (969 sqft) apartment is $1,032, and a 2-bedroom apartment is $1,138. The national average for a 1-bedroom is $1,670, and a 2-bedroom is $1,951.
Below is the average going rate in Knoxville based on the neighborhood.
Average Rent in Knoxville, TN by Neighborhood
|Alcoa Way Park
|Cumberland Avenue Strip
|University of Tennessee
*Data from RENTCaféⓇ
Places to Live in Knoxville
Knoxville is a great place to live with its diverse culture and rich history. There are many different neighborhoods to choose from, each with its own unique character and amenities. Some of the best places to live in Knoxville include:
Downtown: Downtown Knoxville is the heart of the city and offers a vibrant art and entertainment scene. The neighborhood is home to many restaurants, bars, and nightclubs, as well as museums, theatres, and parks.
The University of Tennessee Campus: If you’re a student or young professional, the University of Tennessee campus is a great place to live. The neighborhood is home to many apartments and condos, as well as shops, restaurants, and bars.
Farragut: Farragut is a suburban neighborhood that offers a quiet and peaceful setting while still being close to all the amenities of downtown Knoxville. The area is home to many large homes on spacious lots, as well as several parks and lakes.
West Knoxville: West Knoxville is a popular suburb for young families. The neighborhood offers a quiet, peaceful setting just outside of Knoxville. There are many parks and tree-lined streets in West Knoxville, as well as convenient access to major roads for commuters.
East Knoxville: East Knox is home to the historic Fort Dickerson Quarry Park, where you can go rock climbing or explore an abandoned quarry beach. The neighborhood has great access to major roads for commuters and is close to downtown.
Average House Sale Prices in Knoxville
In October 2021, Knoxville, Tennessee home prices were up 12.6% compared to last year, selling for a median price of $278K. On average, homes in Knoxville sell after 43 days on the market compared to 47 median days last year.
On a scale of 100, with 100 being that the real estate market in any given area is very competitive, Knoxville is a 49, making it somewhat competitive. However, this also means that some homes get multiple offers.
- The average home sells for about 1% above the list price and goes pending in around 42 days on the market.
- Hot homes can sell for about 4% above the list price and go pending in around 28 days on the market.
The sale-to-list ratio for all home types in Knoxville is currently 100.4% which is a 1.0% increase year over year, meaning homes are selling for over asking price.
But because of the pandemic, the number of homes for sale saw low inventory making the Knoxville real estate market experience a seller’s market. However, the lack of inventory is getting better with new listings, new homes, and townhomes coming on the market.
Average Costs to Sell a House in Knoxville
Selling a house in Tennessee isn’t cheap. Between repairs, realtor commissions, closing costs, moving fees, and more, your total expenses can easily eat up 12.0% or more of your home’s final sale price.
While your total out-of-pocket costs will vary based on your situation, you should expect 12.0% or more of your home’s final sale price to go towards selling costs. For example, if you sell your home for an asking price of $280,475 — the median home value in Knoxville, Tennessee — you’ll likely spend $33,657.
While you may not be able to avoid many home selling costs, there is one way to save big when you sell in Tennessee.
Selling to one of the local companies that buy houses in Tennessee, like Nexus Homebuyers, can help you save big on realtor commissions and repair costs.
Knoxville has a healthier job market than similarly sized metro areas.
Some of the biggest employers include The U.S. Department of Energy and the Oak Ridge National Laboratory. Other major employers include the University of Tennessee, Covenant Health, Knox County Schools, University Health System, and Walmart.
Furthermore, unemployment rates are lower than the national average. Knoxville, TN unemployment rates come in at 6.3%, and the national average is 8.1%.
Historic Price Change and Affordability
Historically the real estate market has steadily increased year over year in Knoxville. In Dec 2011, the value of a home in Knoxville was $151,000. Currently, the value of a single-family home in Knoxville is $280,000. Although significantly higher, Knoxville is still a very affordable metro city.
Since home values are still on the rise and interest rates are said to increase, now is a great time to buy or sell real estate in the metro Knoxville area.
Quality of Life
There are many great things that you can enjoy when living in Knoxville, like the University of Tennessee Vols sports, Market Square, the Sunsphere, and the nearby Great Smoky Mountains.
However, there are some pros and cons of living in Knoxville, like any city. But with an affordable cost of living, employment opportunities, and reasonable real estate prices, Knoxville is a great place to call home.
Knoxville has been ranked one of the best places to live by numerous publications. In addition, in 2020, Knoxville ranked among the 100 Best Places to Live by Livability. Knoxville was given this ranking because of an abundance of outdoor activities, a thriving culinary and arts scene, affordability, and strong job prospects.
The people that live here seem to be quite friendly and outgoing, which adds to the community environment. There are also many different opportunities for outdoor activities such as hiking, biking, fishing, and boating. When it comes to the cost of living in Knoxville, TN, there is a wide range depending on what you are looking for. The lowest rent prices can be found in South Knoxville, while the highest median price per square foot can be found near downtown.
Healthcare and education are also important considerations when looking for a new place to live. Knoxville offers both of these with numerous options and affordable pricing. Some of the best places to live in Knoxville are neighborhoods like Fountain City, West Hills, Sequoyah Hills, Bearden, and Halls.
Overall the quality of life in Knoxville is great, and there are many things to do no matter what your interests may be. Whether you’re a recent graduate or nearing retirement, Knoxville is a great place to plant your roots and enjoy life.
With a thriving real estate market, affordable cost of living, and good quality of life, Knoxville is a great place to call home. If you’re looking for a new place to live or would like to relocate to the Knoxville area, it’s important to work with a seasoned real estate professional.
We buy houses in Nashville, Chattanooga, Atlanta, Birmingham, and Knoxville, so if you need to sell your house quickly, we can help! We’re cash home buyers in Knoxville, buy houses in as-is condition, require no repairs, and don’t charge realtor fees.