Tennessee’s housing market for the first quarter of the year held steady amid solid employment numbers and overall positive trends in permits and home prices, according to the latest statewide report from Middle Tennessee State University.
Murat Arik, director of the MTSU Business and Economic Research Center in the Jones College of Business and author of its statewide report, noted the first quarter housing market “remained balanced†as multifamily permits in particular soared 66% from the previous quarter and 62.25% year-over-year.
Across Tennessee, home prices edged up modestly, rising just 0.11% — well below the U.S. gain of 0.8% — while home values climbed 3.7% year-over-year as national prices grew 4.6%.
Closings diverged in metro areas — Nashville was down 3.75% for the quarter (up 3.44% year-over-year), Memphis was up 6% for the quarter (down 8% year-over-year), Knoxville was down 0.23% for the quarter (up 3% year-over-year). Inventories climbed between 10% and 14.2% quarterly and between 13.6% and 39% over the year.
See the full report and more detailed breakdowns, including employment data, at .
Quarterly trends on home prices include:
• Strong growth areas: Morristown MSA led the state with a 2.7% jump in home prices, closely followed by Kingsport– Bristol MSA, which posted a 1.8% increase in Q1 2025.
• Moderate growth areas: Cities with gentler gains included Chattanooga MSA (1%) and Cleveland MSA (0.63%).
• Mixed, slower growth areas: Clarksville MSA saw a slight 0.5% uptick, similar to 0.46% rise in Memphis.
• Declining areas: Three markets slipped: The Knoxville MSA dipped 0.24%, the Johnson City MSA fell 2.2%, and the Jackson MSA dropped 2.7%.
Year over year, Kingsport–Bristol MSA led all Tennessee markets with a 10.3% surge in home prices. Knoxville followed with a 4.13% gain, and Chattanooga posted a 3.8% increase.
BERC’s report is funded by Tennessee Housing Development Agency, or THDA. The quarterly report offers an overview of the state's economy as it relates to the housing market and includes data on employment, housing construction, rental vacancy rates, real estate transactions and mortgages, home sales and prices, delinquencies and foreclosures.
The Business and Economic Research Center operates under the Jennings A. Jones College of Business at MTSU. For more information, visit .
THDA is the state’s housing finance agency and is committed to expanding safe, sound, affordable housing opportunities for low- and moderate-income Tennesseans. This is achieved through a robust home loan program, competitive funding for local nonprofit and municipal agencies, and the administration of nine federally funded programs.
THDA publishes research on affordable housing and THDA programs and beneficiaries. THDA also coordinates state planning for housing through the Consolidated Planning process, annual Action Plans, and annual Performance Reports. See for more information.
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