Knoxville Investment Property for Sale - 2023 Rental Home Appreciation
The Knoxville real estate market has a lot to offer savvy real estate investors. Like Fayetteville and Huntsville, Knoxville is one of the 10 Hidden Gems of the Housing Market in 2022. Knoxville made the list because of its affordable housing market, above-average home value appreciation, and population and wage growth. The rising temperature of the Knoxville housing market keeps real estate agents busy.
Knoxville's Attractive Housing Market
Whether you’re looking to invest in a rehabbed older property or new construction, the Knoxville housing market has a lot to offer. Real estate investors can find nearly every property type in Knoxville’s homes for sale. They include condos, single-family homes, and multi-family homes.
The Knoxville area is home to many great neighborhoods and suburbs for real estate investors to consider. They include Alcoa, Fountain City, Morristown, Parkridge, and Sevierville.
- Alcoa: Alcoa is located 16 miles south of Knoxville along US-129. It’s considered the gateway to the Great Smoky Mountains National Park. The median listing price in Alcoa is $191/sqft, and the median sales price is $299,900. The median rent is $820/month.
- Fountain City: Fountain City is located north of North Knoxville along I-640. It’s a quiet residential neighborhood with quaint local diners, craft breweries, and tree-lined streets. The median listing price in Fountain City is $165/sqft, and the median sales price is $250,000. The median rent is $1,270/month.
- Morristown: Morristown is located 49 miles north of Knoxville along I-40. It’s home to Cherokee Lake and Panther Creek State Park and is known for its outdoor recreation. The median listing price in Morristown is $145/sqft, and the median sales price is $279,900. The median rent is $750/month.
- Parkridge: Parkridge is located northeast of Downtown Knoxville along I-40 and divided by Washington Ave. It’s a residential neighborhood that’s very walkable and close to the heart of Knoxville. The median listing price in Parkridge is $194/sqft, and the median sales price is $265,000. The median rent is $1,400/month.
- Sevierville: Sevierville is 25 miles southeast of Knoxville along US-441. It’s in the gorgeous Smoky Mountains and the birthplace of Dolly Parton. The median listing price in Sevierville is $387/sqft, and the median sales price is $655,000. The median rent is $1,700/month.
Other neighborhoods worth noting are Fort Sanders, near the University of Tennessee and popular among co-eds; Pleasant Ridge, a family-friendly neighborhood; South Knoxville, on the south banks of the Tennessee River; and Strawberry Plains, a small city that’s between Knoxville and Morrisville. There are Knoxville homes for you, no matter what you’re looking to invest in.
Rental Home Appreciation in Knoxville
Knoxville has a robust rental market where renters occupy 51% of households. This creates a lot of demand for rental properties. That’s a lot of opportunity, especially considering the city’s affordability and home value appreciation.
According to Realtor, the median listing price in Knoxville is $189 per square foot with a median sale price of $349,000. Zillow’s Home Value Index reports a 29.3% change since last year. The median rent in Knoxville is $1,650 per month.
Experts project real estate investors can expect a cap rate of 7-9% on a Knoxville rental property.
A Knoxville rental property offers many investment opportunities for investors and property management companies to earn steady rental income and increase their cash flow.
Economic Growth in Knoxville
Knoxville is the 4th largest city in Tennessee, behind Nashville, Memphis, and Chattanooga. It has a population growth rate of around 2% each year. People are drawn to Knoxville because of its beauty, affordability, and cost of living.
Knoxville’s primary industries are retail trade, healthcare, and education. The largest employers are Covenant Health, Knox County Schools, and the University of Tennessee – Knoxville. The Knoxville area is also the headquarters of Regal Cinemas and Pilot Corporation. These industries provide job opportunities that fuel the city’s growth and economy. In fact, the median household income in Knoxville has increased by 7% since last year, and the unemployment rate is just 2.7%.
The Knoxville area offers affordability, above-average appreciation, demand for rental properties, and a stable economy. It has all the makings of a great investment opportunity for homebuyers and real estate investors.