MARKET SNAPSHOT

Knoxville q3 2025

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AVERAGE RENT

$1,458 Q3 2025

OCCUPANCY RATE

93.8% Q3 2025

NET ABSORPTION

911 YTD Q3 2025

ANNUAL RENT CHANGE

-0.9% Q3 2025

ANNUAL OCCUPANCY CHANGE

-90 BPS Q3 2025

UNIT COMPLETIONS

1,590 YTD Q3 2025

KEY TAKEAWAYS

Demand in Knoxville’s multifamily market remained consistent with historical norms through the third quarter. However, a wave of new deliveries continued to outpace absorption by more than a two-to-one margin over the past year.

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Roughly 2,300 units were completed over the past four quarters—below the record 2,700 units delivered in early 2024 but still moderately above the five-year annual average of 1,650 units. North Knoxville, the metro’s second-largest submarket by inventory, led all areas for new development, adding approximately 600 units over the past year.

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The influx of new supply has kept overall occupancy near historic lows at just under 91%. However, when focusing on stabilized properties—where occupancy averages 93.9%, roughly 300 basis points higher—steady renter demand remains evident across the existing stock.

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MARKET OUTLOOK

Knoxville’s multifamily market is poised for gradual stabilization following an extended period of elevated construction and supply-driven pressure...