KNOXVILLE, Tenn. — More than half of all renter households in the Knoxville area are cost-burdened, meaning more than 30% of their household income went to pay for rent.
According to a report from the East Tennessee REALTORS group, around 25% of renter households also spent more than half of their income on housing. The data covers the Knoxville Metropolitan Statistical Area, which includes Anderson, Blount, Campbell, Knox, Loudon, Morga, Roane and Union counties.
The report said the area's median household income only grew by 20% from 2019 to 2023, and in the same time period rent change was at around 34%. Since rent outpaced income growth, the report said several people were left cost-burdened. The report said the number of cost-burdened renters hit an 18-year high in the Knoxville area.
"As 53% of renters continue to have to put between 30-50% of their income towards housing there is less to be spent in the greater economy. Not only can this impact the local economy, but can also impact the future wealth building for renters," the report said.
The report also noted the gap between the median net worth of homeowners and renters increased in 2024 compared to previous years. It said the median net worth of homeowners was around $415,000, compared to $10,000 for renters.
The report said the median home sale price in the Knoxville area in October was around $374,900 — up by around $3,650 compared to last month. It also said around 44% of homes sold for the asking price or above and said new construction represented around 14% of total home sales.
The report also said mortgage rates rose to around 6.72% in October — up from a recent low of around 6.08%. The inventory of homes available on the market in East Tennessee was also up by around 38.2% compared to last year.
