Knoxville, TN Scores 39 on PropertyIQ. The 2020-2022 Appreciation Run Is Over.
Knoxville scores 39 out of 100. The market is below average on our index, driven by an overvaluation problem that has caught up with a once-hot Tennessee market.
What Happened to Knoxville
Two years ago, Knoxville was on every "best places to invest" list. Remote work migration, University of Tennessee demand, and a low cost of living made it a magnet for buyers from Nashville and beyond.
The data now tells a different story. Home values rose 45.2% over five years as of February 2026 -- and that appreciation outpaced local incomes by a wide margin. The market is now 44.3% overvalued.
The inventory correction is underway. For-sale inventory grew 12.9% year-over-year to 2,905 homes. Days on market stretched to 79. Price cuts affected 17.9% of listings.
The income gap is real. The listing price is $449,900 on a $69,734 median income. The estimated income needed to buy is $119,582.
What the Data Still Shows in Knoxville's Favor
Unemployment is low at 3.4% as of November 2025. The University of Tennessee and Oak Ridge National Laboratory provide stable institutional employment.
Zillow's 12-month forecast is +5.2% -- the highest forward estimate in this batch. The demand signal is not gone; the supply signal has simply overtaken it for now.
Key Market Data (as of February 28, 2026 unless noted)
- PropertyIQ Score: 39/100
- Median home value: $354,645 (Zillow, Jan 31, 2026)
- Median listing price: $449,900 (Realtor.com, Feb 2026)
- Year-over-year price change: +1.1%
- Overvaluation vs. income: +44.3%
- Days on market: 79
- For-sale inventory: 2,905 homes
- Inventory change YoY: +12.9%
- Price cuts: 17.9% of listings
- Rent index: $1,712/mo (Zillow, Dec 2025)
- Unemployment: 3.4% (Nov 2025)
- Median household income: $69,734 (Census, 2023)
- 5-year home value change: +45.2%
- Zillow price forecast: +5.2% (12-month, Dec 2025)
What This Means for Investors
The 5-year appreciation story in Knoxville is behind us. Buyers who purchased in 2020-2022 did well; buyers entering today are buying at the top of that cycle.
For investors focused on rent yield: $1,712/mo rent on a $355K median gives a gross rent multiplier of approximately 17.3x -- workable, but the overvaluation risk is real. Watch for inventory to stabilize. If the score improves to the 50s over the next few months, it may signal recovery.
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