Employment Holds While Fundamentals Weaken
Knoxville’s multifamily fundamentals remained mixed in July, as positive short-term rent growth persisted despite pressure from elevated recent supply. Average advertised asking rents rose 0.2%, on a trailing three-month basis, to $1,502, matching the U.S. increase to $1,771, while year-over-year rents declined 1.1% and the national average rose 0.2%, as noted in the national multifamily market report. The occupancy rate in stabilized properties fell 150 basis points year-over-year to 94.4% in June, reflecting absorption pressure amid the metro’s recent supply expansion.
Knoxville employment growth slowed to 0.7% year-over-year in May, ahead of the 0.1% U.S. contraction. Unemployment fell to 3.4% in June, below Tennessee’s 3.5% and the 4.2% U.S. rate. The metro added 1,400 net jobs, with five sectors gaining and five losing; education and health services and government led gains, while construction and manufacturing led losses. Greenheck Group’s $300 million Midway campus and TRISO-X’s Oak Ridge nuclear fuel and R&D project are notable demand drivers.
Developers delivered 886 units in 2026 through July, with 3,641 units underway and starts down 53.5% from the same period in 2025. Investment volume was very limited, at $7 million, while the average price per unit fell 39.3% from year-end 2025 to $94,595, although the figure is based on a single transaction and is not indicative of broader metro pricing.
Read the full Yardi Matrix Knoxville Multifamily Market Report: September 2026
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