NASHVILLE, Tenn. — Middle Tennessee State University released its quarterly report discussing Tennessee housing on Monday, showing that home prices continued to climb across the state.
The MTSU Business and Economic Research Center said in the report that housing inventory was on the rise in large metropolitan areas year-over-year, with Nashville showing the most growth. Knoxville showed the least amount of gains in housing inventory year-over-year when compared to Nashville and Memphis.
Compared to the previous quarter, Knoxville also showed the most decrease of homes available for purchase at around 10.81%, with only Memphis expanding its housing inventory over the course of the quarter by around 2.91%.
The report also showed all home prices rising among Tennessee metropolitan areas in the second quarter of 2023. Annual growth also exceeded that of the U.S. and the Knoxville area saw the most significant price hikes annually at 11.4%.
The Clarksville area saw the smallest annual increase of 0.7%, according to the report. Nashville saw an annual price increase of 3.4% and Memphis saw an increase of around 5%, according to the report.
The report also said quarterly closings decreased by around 0.06% in Nashville and around 3.3% in Memphis but increased slightly in Knoxville by around 0.07%. Annually, closings declined by 20% in Nashville, 16.7% in Knoxville, and 29% in Memphis.
The report also said vacancy rates increased in Tennessee during the second quarter of 2023. It found that the state's homeowner vacancy rate of around 0.8% jumped slightly above the national rate of 0.7%.
The report also found that the state's rental vacancy rate far outpaced the national rate. The state saw a rental vacancy rate of around 9.1% in the second quarter of 2023, while the national rate was around 6.3%, according to the report.
The report found that the number of single-family construction permits given in Tennessee grew by around 20.6%, and grew by around 15.4% in the U.S. However, single-family permits fell by around 8.94% in Tennessee annually and fell by around 11.93% annually across the U.S.
