2025 State of Housing Report outlines signs of recovery in the market

Housing prices and inventory beginning to stabilize after pandemic

East Tennessee REALTORS® (ETNR) has released its 2025 State of Housing Report, an annual analysis of the local housing market and its outlook for the upcoming year. 

“The East Tennessee housing market is beginning to recover after several years of challenging conditions,” said Maria McHale, ETNR’s government affairs and policy director. “While we’re slowly headed in the right direction, proactive steps will be required to get back on track.”

While affordability remains a serious challenge, with much of the available inventory out of reach for residents’ income levels, the market shows subtle signs of improvement. The report states that the Knoxville region’s home price growth has slowed down, with a forecasted increase of 2.9% in 2025. Apartment rent in 2025 is expected to increase around 3.5%.

Inventory also is returning to the market, with active listings now surpassing pre-pandemic levels for the first time. Home sales increased 1.8% in 2024, reversing a two-year decline, and the amount of time a listing stays on the market increased to an average of weeks rather than days. Total home sales are forecasted to rise by 6.1% compared to 2024.

“Housing is fundamental to quality of life,” McHale said. “East Tennessee is a desirable place to live, and we hope to keep it that way. By increasing housing variety and removing policy barriers, we could see significant improvements in affordability within the next 5 to 10 years.”

The report uses data to explore factors affecting housing availability, affordability and equity, from regional economic conditions to changing demographics. ETNR calls on advocates, elected officials and community leaders to work together to expand housing options across types, sizes and price ranges in order to support all residents. The association emphasizes that a deeper understanding of housing challenges and potential solutions will help the community make well-informed decisions for the future.

About East Tennessee REALTORS®

Founded in 1912 and evolving from the Knoxville Area Association of REALTORS®, East Tennessee REALTORS® has been serving the real estate interest of its members and the public for more than 100 years. The association comprises 12 counties in the region: Anderson, Blount, Campbell, Cumberland, Fentress, Knox, Loudon, Monroe, Morgan, Roane, Scott and Union. The purpose of East Tennessee REALTORS® is to unite and serve its members and to enhance the ability and opportunity of its members to conduct their business ethically, professionally and successfully and to promote the preservation of the right to own, transfer and use real property. For more information, visit etnrealtors.com.