Tennessee Real Estate Markets 2026: How Nashville, Memphis, and Knoxville Score on PropertyIQ

Tennessee is one of the most talked-about real estate states in the country. No state income tax, strong population inflows, and a business-friendly regulatory environment have made Nashville especially popular with investors and relocators over the past several years.

The PropertyIQ Score for the Tennessee real estate market in 2026 tells a different story than the headlines. Nashville scores 26 out of 100 as of February 28, 2026. Memphis scores 50. Knoxville scores 39. Chattanooga does not have enough data coverage to score at this time.

This post breaks down what the data shows, why the scores are where they are, and what investors and buyers should understand before assuming Tennessee's reputation translates to strong market conditions right now.

Tennessee PropertyIQ Scores at a Glance

| Metro | Score | Grade | Median Price | 3-Month Trend | |-------|-------|-------|-------------|--------------| | Memphis | 50 | F | $282,000 | Up +4 | | Knoxville | 39 | F | $390,000 | Down -2 | | Nashville | 26 | F | $459,950 | Up +1 |

All scores and prices are as of February 28, 2026. A score of 50 represents the Tennessee state average.

The PropertyIQ scale is calibrated to the state, not the national average. A score of 50 means a market sits at the Tennessee average. Nashville at 26 is not just below the national average. It is well below the Tennessee average, in the bottom quarter of markets the model tracks in the state.

Why Nashville Scores 26

Nashville became one of the fastest-growing cities in the country between 2018 and 2022. Population growth attracted developers. Developers built. Between 2021 and 2023, Nashville and its suburbs added multifamily and single-family units at a pace significantly above long-run demand.

When construction outpaces absorption, inventory builds. When inventory builds faster than buyers and renters can absorb it, pricing power weakens and the supply-demand balance that drives the PropertyIQ Score tilts negative.

Nashville's current score is 26 as of February 28, 2026. The score has been in the mid-to-upper 20s for most of the past twelve months, ranging from 22 to 37. It has not broken above 40 since early 2025.

At $459,950 median price, Nashville is the most expensive of the three Tennessee markets in this dataset. High price and low PropertyIQ score is a combination that signals a correction environment or an oversupplied market. In Nashville's case, it reflects the latter.

This does not mean Nashville is a bad place to live or that its long-term trajectory is negative. It means that the current supply-demand balance, as measured by pending ratios, inventory levels, and demand indicators, does not favor buyers or investors looking for appreciation over the near term.

Why Memphis Scores 50

Memphis scores 50 out of 100 as of February 28, 2026. The median price is $282,000. At 50, Memphis sits exactly at the Tennessee state average.

The Memphis market is different from Nashville structurally. It did not experience the same construction boom during 2021-2023, so it did not accumulate the same inventory overhang. The lower price point also means that affordability is less of a barrier to buyer entry than in Nashville or Knoxville.

The score has been stable in the 46-52 range for most of the past twelve months. It is not a market with strong upward momentum, but it is not deteriorating either. The +4 three-month trend reflects a modest improvement in the supply-demand balance.

For investors focused on cash flow at lower price points, Memphis at $282K with a 50 score is a more useful starting point than Nashville at $460K with a 26 score. A score of 50 still means the market is at the state average, not exceptional by PropertyIQ standards, but the combination of price and score offers a different risk profile than the higher-priced, lower-scoring alternatives.

Why Knoxville Scores 39

Knoxville scores 39 out of 100 as of February 28, 2026. The median price is $390,000. The score is trending down 2 points from 41 in November 2025.

Knoxville does not have Nashville's oversupply problem to the same degree, but it also lacks Nashville's demand drivers. The market is anchored by the University of Tennessee, which provides a stable employment and renter base, but it has also seen new construction inflows that have softened the supply-demand picture.

The score peaked near 59 in March 2025 and has been declining since. The trajectory is the most concerning data point in the Knoxville dataset. A market declining from 59 to 39 over twelve months is not in freefall, but it is signaling that conditions are moving in the wrong direction.

At $390,000, Knoxville is priced between Memphis and Nashville. The combination of a mid-range price, a score below the state average, and a declining trend means it is the least favorable profile of the three markets in the current data.

What the Tennessee Scores Tell You About the Tennessee Real Estate Market in 2026

The most important thing the Tennessee data shows is the gap between narrative and fundamentals. Tennessee has been a popular story for the real estate investment community for several years. The PropertyIQ Score measures what is actually happening in the supply-demand balance, not what happened before 2022.

Nashville was one of the fastest-growing cities in the country. That growth attracted capital and construction. The construction has now created an inventory environment that the model scores unfavorably. The story was real. The question is whether the market has absorbed that growth phase or whether the overhang continues to suppress scores.

The score is updated monthly. Investors watching Nashville's score should look for it to break and hold above 40 as a signal that the inventory overhang is clearing. As of February 2026, that threshold has not been reached.

What PropertyIQ Recommends for Tennessee Research

PropertyIQ does not make investment recommendations. The score is a measure of current market conditions, not a prediction of future performance. What the data shows:

• Memphis is the only Tennessee metro in this dataset at or above the state average.
• Nashville is significantly below average and has been for over a year.
• Knoxville is below average and trending lower.

For investors and buyers researching the Tennessee real estate market in 2026, the score is a useful starting point for understanding where supply and demand are in balance and where they are not. Tennessee's favorable tax and regulatory environment may be a compelling reason to invest in the state. The PropertyIQ Score tells you which markets within the state currently have supply-demand fundamentals working in your favor.

How PropertyIQ Scores Tennessee Markets

PropertyIQ scores markets on a 0-100 scale where 50 represents the state average. A score above 50 means above-average market conditions compared to the Tennessee baseline. A score below 50 means below-average conditions.

The score is updated monthly and reflects supply-demand balance, pending ratios, inventory trends, and demand indicators from Zillow, Census, and Realtor.com data. It is not a prediction of price appreciation or rental income. It is a measure of current market conditions relative to the state.

Chattanooga does not currently have sufficient data coverage to generate a PropertyIQ Score. Check the market page for updates as coverage expands.