Nestled in the foothills of the Great Smoky Mountains, Knoxville, Tennessee, is a city with a rich history, diverse culture, and a burgeoning real estate market. Whether you’re a seasoned investor or new to the housing market, Knoxville offers unique opportunities. Here are some captivating facts about Knoxville that make it an enticing destination for real estate investment in East Tennessee and the South as a whole.
There’s an Urban Renaissance in Downtown Knoxville
Knoxville’s downtown has experienced a renaissance recently, with revitalized historic buildings, trendy eateries, and a thriving arts and culture scene. Real estate investors can tap into the demand for urban living by exploring properties in the heart of this vibrant city center.
With its historic charm and eclectic mix of shops and restaurants, the Old City district in downtown Knoxville provides a unique real estate investment opportunity. Adaptive reuse of historic buildings can attract residents and businesses, capitalizing on the area’s character.
It Is Close to Everything
Knoxville’s strategic location in Knox County near the Great Smoky Mountains National Park positions it as a gateway to outdoor adventure. This proximity enhances the city’s appeal for residents and visitors, making it an ideal location for vacation rentals or properties catering to outdoor enthusiasts.
The Knoxville, TN Real Estate Market Is Affordable
One of Knoxville’s standout features is its affordability, particularly when home prices are compared to high-cost markets like California. Knoxville’s average sale price is 25% lower than the national average, an attractive proposition for new homebuyers. The overall cost of living is also 14% lower than the national average, making Knoxville an affordable yet vibrant place to call home.
The price per square foot in Knoxville is substantially lower than in major cities in California, Georgia, or Florida, making it an enticing prospect for investors seeking a better return on investment. Investors may be able to capitalize on this affordability factor while still offering quality living spaces.
It is a Hub for Technology and Innovation
The presence of the University of Tennessee not only injects youthfulness and energy into Knoxville but also creates a consistent demand for rental properties.
Knoxville has emerged as a hub for technology and innovation, with the Oak Ridge National Laboratory and the University of Tennessee Research Park driving advancements in various fields. Investors may benefit from the demand for housing from professionals working in research and development centers.
There Is a Thriving Cultural Scene
Knoxville boasts a vibrant arts and music scene, with events like the Big Ears Festival drawing national and international attention. Real estate investors can explore opportunities around cultural hubs, contributing to the city’s creative atmosphere and attracting a diverse demographic of renters.
The craft beer industry has grown significantly in Knoxville, with numerous breweries and taprooms dotting the city.
Then There’s the Tennessee River and Waterfront Living
Knoxville sits along the Tennessee River, providing opportunities for waterfront living. Real estate investments in these areas can appeal to those seeking scenic views, recreational activities, and a unique lifestyle by the river.
Knoxville Has a Sense of Community
Knoxville, like much of the South, is known for its strong sense of community, where residents take pride in their city. Real estate investors may be able to leverage this community spirit by investing in projects that contribute positively to the local fabric, fostering a sense of belonging for residents.
The Real Estate Market Is Competitive
The Knoxville housing market is relatively competitive. Home sales in the area typically sell within a swift 40 days on the market on average as of December 2023.
Knoxville’s housing market showcases an interesting negotiation landscape. On average, homes sell for about 1% below the list price. However, strategic realtors may find themselves in a seller’s market, with the potential to sell for about 2% above the list price and secure a sale within an accelerated time frame of 24 days. It’s all negotiable.
The Knoxville Area Association of Realtors recently rebranded as the East Tennessee Realtors. They represent the real estate needs of their members and the general public, organizing members to improve their capacity and opportunity to do business ethically, fairly, and effectively, and to encourage the protection of the right to purchase, transfer, and use real property.
Year-Over-Year Growth Is Good
According to Redfin, since last year, the Knoxville real estate market experienced a remarkable 17.7% year-over-year home price growth in median prices, which in April of 2023 stood at $399,900. This growth signals healthy market trends and could offer an excellent opportunity for investors seeking appreciation in their real estate portfolios.
People Are Staying Put
Recent trends reveal that only 30% of Knoxville homeowners considered moving out of the city, while the majority (70%) chose to stay within the metropolitan area. Nationally, 0.65% of home buyers expressed interest in moving into Knoxville from outside cities, with Los Angeles, Chicago, and Washington leading the pack.
For real estate investors, Knoxville could present an opportunity to capitalize on a market characterized by steady appreciation, quick sales, and affordability. Keeping a keen eye on evolving trends and strategic investment areas can unlock the full potential of this dynamic real estate landscape.
Knoxville is a dynamic city with a mix of history, culture, and modern innovation, making it a compelling destination for real estate investors. From the revitalized downtown to the natural beauty of the Great Smoky Mountains, Knoxville offers a range of opportunities for those looking to unlock the potential of this hidden gem in the heart of East Tennessee.
Interested in the Knoxville, TN, real estate market? Arrived offers investment opportunities in great markets like Knoxville nationwide.
The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. The views reflected in the commentary are subject to change at any time without notice. View Arrived’s disclaimers.
