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Report predicts Knoxville-area housing market will continue to decelerate in 2023
December 16, 2022; 3:40 p.m.

KNOXVILLE -- The Knoxville Area Association of REALTORS® (KAAR) released its 2023 Forecast Report, an annual overview of the outlook for the local housing market for the upcoming year.

The report predicts the Knoxville-area housing market will continue to decelerate in 2023, with home sales forecasted to decline between 10-12% from the previous year. Despite the expected decline in home sales volume, home prices are forecasted to increase between 3-5% in 2023 compared to the prior year.

“Although the housing market is expected to slow down next year, the demand for housing continues to outpace supply due to migration gains and strong employment growth,” said Hancen Sale, KAAR’s government affairs and policy director. “I expect Knoxville’s housing market to stay relatively strong in 2023 and outpace many other metro areas across the country.”

The report also predicts the rental market will moderate next year, with rent in the Knoxville metro area forecasted to grow 4% on an annual basis in 2023. Occupancy is expected to decline to an average of 96.5% across 2023, down from the record high of 98.86% registered in the fourth quarter of 2021.

“Housing is the foundation that enables economic growth and prosperity,” Sale said. “With continued growth on the horizon, meeting the rising demand for affordable housing of all types will be one of the most important challenges the East Tennessee region will face over the next decade.”

Founded in 1912, the Knoxville Area Association of REALTORS® has been serving the real estate interest of its members and the public for more than 100 years. For more information, please visit


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