MARKET SNAPSHOT

Knoxville q2 2026

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AVERAGE RENT

$1,454 Q2 2026

OCCUPANCY RATE

93.3% Q2 2026

NET ABSORPTION

1,378 T4Q

ANNUAL RENT CHANGE

-1.7% Q2 2026

ANNUAL OCCUPANCY CHANGE

-65 BPS

UNIT COMPLETIONS

1,609 T4Q

KEY TAKEAWAYS

Absorption jumped to 592 units in Q2, nearly triple Q1's total and the strongest quarter in two years, pushing occupancy to 93.3%, the highest among Knoxville's closest Southeast peers by size.

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Starts have collapsed 73% to 796 units, signaling supply will thin materially by late 2027. In the near term, 2,827 units remain under construction, concentrated in Western Knox County and North Knoxville, keeping completions elevated through 2026.

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Rents posted their first positive quarter (+1.9%) after three straight declines, though annual growth remains negative. Supply-light submarkets like Downtown Knoxville and Maryville/Alcoa are already outperforming, while Western Knox County and North Knoxville will take longer to stabilize.

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MARKET OUTLOOK

Knoxville's multifamily market is turning a corner. Completions are down 18% year-over-year, and starts have fallen 73% to just 796 units, a pullback that should meaningfully ease supply pressure by mid-2027 even with 2,827 units still under construction...