According to RealPage, the Knoxville MSA had the highest year-over-year effective rent growth, overtaking Orlando for the second quarter consecutively. At the end of 2022, Knoxville’s effective rent increased 18.5%, outpacing its historic 17.7% growth rate in 2021. Monthly effective rent was $1,382 in the fourth quarter of 2022. Incoming residents have kept available inventory low, allowing landlords to raise rents due to the persistent need for housing.
Despite having the highest growing rents in the country, residents are continuing to move to Knoxville. In 2022, Tennessee’s population grew by nearly 83,000 people, the largest increase since 2009. Knoxville ranked in the top five cities that new residents are moving to, boasting an affordable rent compared to the national average and growing economy.
From year-end 2020 to year-end 2022, Knoxville’s employment has grown 9.8%, surpassing pre-pandemic employment levels as early as October 2021. In December 2022, the Bureau of Labor Statistics had their preliminary total nonfarm employee count for the Knoxville metro at 439,5000, which has already surpassed employment projections from Berkadia’s 2023 Forecast Report. Knoxville’s growing economy is underpinned by the health care industry. In addition, companies are broadening their presence in Knoxville. Within the last four months, two companies have announced their plans to expand within the metro.
A global renewable energy company, Hitachi Zosen Inova USA LLC, will invest $6.6 million to expand operations in the Knoxville area. Meanwhile, Safire Technology Group will establish a new laboratory in the area.