Demand continues to lag new supply, with just 225 units absorbed in Q2 2025 versus 1,752 completions—the largest annual Q2 delivery total on record—resulting in decreased occupancy in supply-heavy submarkets like West and South Knoxville.
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Rent growth has stalled overall, but Knoxville's affordability remains a key strength, supporting resilience in Class C and select submarkets where rents grew over 5% annually despite headwinds from new construction.
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Occupancy declined to 94.2%—near pre-pandemic norms—but remains above national and regional benchmarks, with signs of stabilization as pipeline pressures begin to ease.
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MARKET OUTLOOK
Looking ahead, a surge of new units is expected to deliver through the end of 2025, followed by a slowdown in construction activity...
