Tennessee Rental Market Tendencies in 2025
Lately, Tennessee has emerged as a hotspot for residents and buyers alike. The state’s enchantment lies in a strong mixture of financial vitality, inhabitants development, and relative affordability. Tennessee’s economic system has diversified considerably, with sturdy job creation in healthcare, logistics, know-how, and manufacturing. And lots of of its cities have turn out to be regional hubs for innovation and employment, attracting a youthful workforce searching for alternative and high quality of life.
With its business-friendly setting, booming job market, and robust rental demand, Tennessee presents quite a few alternatives for buyers searching for sturdy returns on funding. However with giant influxes of provide in sure locations, it’s necessary to know which Tennessee rental markets current the strongest alternatives beneath present circumstances.
On this publish, we’ll discover 5 cities that stand out for his or her funding prospects in 2025—from well-known hubs like Nashville and Chattanooga to rising stars like Johnson Metropolis and Kingsport. We’ll share rental market statistics for every metropolis, together with stock development, lease development, emptiness charges, cap charges, and property worth appreciation. We’ll additionally spotlight financial and demographic traits in every market.
Prime 5 Rental Markets in Tennessee for 2025
With out additional ado, listed here are 5 Tennessee rental markets the place our analysis signifies development alternatives lie in 2025.
Market #1: Johnson Metropolis, TN
Johnson Metropolis is Tennessee’s eighth-most populous metropolis, with 212,561 residents dwelling in its metro space. Its inhabitants has been rising steadily for the reason that metropolis’s founding in 1856. Johnson Metropolis was named for a railroad station (Johnson’s Depot) that was a hub for a number of rail programs all through the nineteenth and twentieth centuries. As we speak, a type of practice strains has been reworked into the favored Tweetsie Path.
Surrounded by the Blue Ridge Mountains, Johnson Metropolis is situated in japanese Tennessee. It’s comparatively near the borders of North Carolina and Virginia; and components of Kentucky, South Carolina, and Georgia are additionally accessible for day journeys, giving Johnson Metropolis a central location inside the area. Residents are capable of take pleasure in out of doors actions in parks like Tannery Knobs, Founders Park, and King Commons. Cultural points of interest embody the Tipton-Haynes State Historic Web site, Reece Museum, Johnson Metropolis Group Theatre, and the Johnson Metropolis Public Library.
To its residents, Johnson Metropolis is thought for its pleasant, small-town ambiance, its relative affordability, and its sturdy native economic system. Johnson Metropolis’s high employers are unfold throughout the healthcare, training, and authorities sectors, together with Ballad Well being, East Tennessee State College, James H. Quillen VA Medical Middle, Mountain States Well being Alliance, Johnson Metropolis’s native authorities, and the Washington County Faculty System.
Buildium’s listing of up-and-coming actual property markets in 2025 ranked Johnson Metropolis in place #4 on account of its sturdy lease development, emptiness charges, cap charges, property worth appreciation, and unemployment charges during the last two years. It was additionally chosen by the Wall Avenue Journal and Realtor.com’s listing of rising housing markets in Spring 2024, rating in place #9. Town’s affordability and comfort to different markets makes it an important spot for buyers and property managers to get their foot within the door in Tennessee in 2025.
Johnson Metropolis, TN Rental Market Statistics
- Rental Stock (Q3-’24): 7,899
- Models Added Since Q3-’23: +0
- Asking Lease Progress Since Q3-’23: 5.5%
- Asking Lease (Q3-’24): $1,094
- Efficient Lease (Q3-’24): $1,088
- Multifamily Emptiness Fee (Q3-’24): 3.4%
- Multifamily Cap Fee (Q3-’24): 7.6%
Supply: Nationwide Affiliation of Realtors
Johnson Metropolis, TN Housing Market Statistics
- Median House Worth (Q3-’24): $331,000
- House Worth Appreciation Since Q3-’23: 9.6%
Supply: Nationwide Affiliation of Realtors
Johnson Metropolis, TN Financial Statistics
- Inhabitants Progress (2023): 0.3%
- GDP Progress (2023): 9.0%
- Job Progress (Q3-’24): 1.3%
Supply: Nationwide Affiliation of Realtors
Lists That Point out Johnson Metropolis, TN
Market #2: Knoxville, TN
Situated in japanese Tennessee, the Knoxville metro space’s 947,017 residents make it the third-most populous metropolis within the state. Based in 1791, Knoxville’s economic system and inhabitants have seen a number of upswings over the centuries, together with the railroad’s connection to the town in 1855; the institution of iron and textile industries following the Civil Struggle; and the revitalization of the town in step with the 1982 World’s Truthful. Lately, city renewal initiatives and financial diversification have performed essential roles within the metropolis’s ongoing improvement.
Knoxville has a various financial panorama, with employers throughout the training, healthcare, vitality, retail, and leisure sectors. Prime employers embody the College of Tennessee, Covenant Well being, the Tennessee Valley Authority, Dollywood, Roark Capital Group, Meals Metropolis, and the state of Tennessee.
The Nice Smoky Mountains and Cumberland Mountains are shut by, offering residents and guests with limitless alternatives for mountaineering, fishing, tenting, and extra. Cultural points of interest embody the Knoxville Museum of Artwork, the Bijou Theatre, the Knoxville Symphony Orchestra, and the historic website James White’s Fort. Residents additionally benefit from the metropolis’s youthful vitality and wealthy tradition stemming from the College of Tennessee, with the Ewing Gallery of Artwork + Structure and Hodges Library holding frequent occasions. There are additionally quite a few occasions held in Knoxville every year, together with the Massive Ears music competition and Dogwood Arts Pageant.
Knoxville ranked in place #28 on Buildium’s listing of up-and-coming actual property markets in 2025 on account of its wholesome lease development, property worth appreciation, emptiness charges, inhabitants development, GDP development, and unemployment charge during the last two years. It additionally appeared on the Wall Avenue Journal and Realtor.com’s listing of rising housing markets in three out of 4 quarters of 2024. Its affordability as compared with a lot of the U.S. makes Knoxville a compelling selection for buyers and property managers seeking to broaden inside Tennessee in 2025.
Knoxville, TN Rental Market Statistics
- Rental Stock (Q3-’24): 44,949
- Models Added Since Q3-’23: +302
- Asking Lease Progress Since Q3-’23: 2.9%
- Asking Lease (Q3-’24): $1,464
- Efficient Lease (Q3-’24): $1,451
- Multifamily Emptiness Fee (Q3-’24): 5.9%
- Multifamily Cap Fee (Q3-’24): 6.3%
Supply: Nationwide Affiliation of Realtors
Knoxville, TN Housing Market Statistics
- Median House Worth (Q3-’24): $368,200
- House Worth Appreciation Since Q3-’23: 5.0%
Supply: Nationwide Affiliation of Realtors
Knoxville, TN Financial Statistics
- Inhabitants Progress (2023): 4.4%
- GDP Progress (2023): 7.3%
- Job Progress (Q3-’24): 1.6%
Supply: Nationwide Affiliation of Realtors
Lists That Point out Knoxville, TN
Market #3: Kingsport, TN
Kingsport is situated within the northeastern nook of Tennessee, simply throughout the border from Virginia. The metro space has 312,490 residents. Along with Johnson Metropolis and Bristol, Kingsport is part of the Tri-Cities area (additionally known as the Mountain Empire) that features communities in Northeast Tennessee and Southwest Virginia.
Kingsport’s location alongside the Holston River made it a perfect delivery port for items on their option to Knoxville all through the nineteenth century. For greater than 100 years, Kingsport’s most important employer has been Eastman Chemical Firm, an S&P 500 enterprise whose headquarters employs 6,500 staff right here. Different high employers embody Associate Industrial, Ballad Well being Holston Valley Hospital, and Kingsport Metropolis Colleges. Three increased training establishments even have branches in Kingsport: East Tennessee State College, Lincoln Memorial College, and Northeast State Group Faculty.
Situated within the coronary heart of the Appalachian Mountains, Kingsport residents can take pleasure in mountaineering, fishing, tenting, boating, and extra. Cultural points of interest embody Bays Mountain Park & Planetarium, Netherland Inn Museum, Allandale Mansion, Change Place, and Kingsport Carousel & Park. Residents and guests may also see performances by the Symphony of the Mountains and Kingsport Ballet, in addition to displays placed on by the Kingsport Artwork Guild. Sports activities followers can catch a baseball sport at Hunter Wright Stadium performed by the Kingsport Axmen, a part of the Appalachian League.
On Buildium’s listing of up-and-coming actual property markets in 2025, Kingsport ranked simply behind Knoxville in place #29. Its rank was as a result of market’s sturdy lease development, emptiness charges, cap charges, property worth appreciation, unemployment charge, and GDP development during the last two years. Kingsport additionally appeared on the Wall Avenue Journal and Realtor.com’s rising housing markets listing in three out of 4 quarters in 2024. As probably the most reasonably priced Tennessee actual property market on our listing, Kingsport could also be value a search for rental buyers and property managers seeking to develop their portfolios within the state in 2025.
Kingsport, TN Rental Market Statistics
- Rental Stock (Q3-’24): 6,041
- Models Added Since Q3-’23: +0
- Asking Lease Progress Since Q3-’23: 2.8%
- Asking Lease (Q3-’24): $1,092
- Efficient Lease (Q3-’24): $1,085
- Multifamily Emptiness Fee (Q3-’24): 6.9%
- Multifamily Cap Fee (Q3-’24): 7.1%
Supply: Nationwide Affiliation of Realtors
Kingsport, TN Housing Market Statistics
- Median House Worth (Q3-’24): $276,300
- House Worth Appreciation Since Q3-’23: 5.5%
Supply: Nationwide Affiliation of Realtors
Kingsport, TN Financial Statistics
- Inhabitants Progress (2023): 0.6%
- GDP Progress (2023): 5.1%
- Job Progress (Q3-’24): 1.4%
Supply: Nationwide Affiliation of Realtors
Lists That Point out Kingsport, TN
Market #4: Chattanooga, TN
Chattanooga is situated in southeastern Tennessee alongside the state’s border with Georgia. 580,353 folks reside in its metro space, making it the fourth-most populous MSA in Tennessee. Chattanooga has been a transportation hub for the area since its institution in 1839, with a number of interstates and rail strains converging right here. As well as, Chattanooga’s location alongside the Tennessee River has made it a hub for commerce all through its historical past.
Chattanooga was recognized for its manufacturing of iron, metal, and different industrial items in the course of the first half of the 20 th century. As with different Rust Belt Cities, it struggled with deindustrialization, layoffs, and inhabitants loss in the course of the Seventies and ‘80s. Since then, Chattanooga has undergone vital revitalization, together with measures to revive historic buildings, develop inexperienced areas, and enhance air high quality, all of which have helped to draw new companies and residents to the town.
Chattanooga’s economic system is considerably extra various now than it as soon as was, with a mixture of conventional manufacturing and rising industries. Prime employers embody Erlanger Well being System, BlueCross BlueShield, Hamilton County Colleges, the Tennessee Valley Authority, McKee Meals Corp, Unum, Volkswagen, and CHI Memorial Hospital. Increased training establishments in Chattanooga embody the College of Tennessee at Chattanooga and Chattanooga State Group Faculty.
Residents and guests to Chattanooga are drawn to the town’s cultural points of interest, such because the Hunter Museum of American Artwork, Tennessee Aquarium, Chattanooga Symphony & Opera, Inventive Discovery Museum, Chattanooga Theatre Centre, and Songbirds Guitar Museum. The Bluff View Artwork District’s galleries, cafes, and gardens are an important place to benefit from the native artwork scene. As well as, the Riverbend Pageant attracts music lovers to the town every year.
Chattanooga didn’t make it onto Buildium’s listing of up-and-coming actual property markets due to its adverse lease development and excessive emptiness charge in 2024, each a results of the inflow of latest development available in the market. Nevertheless, the town’s wholesome economic system and actual property market make this a superb decide for buyers and property managers seeking to broaden into considered one of Tennessee’s largest cities at an reasonably priced worth level.
Chattanooga, TN Rental Market Statistics
- Rental Stock (Q3-’24): 29,542
- Models Added Since Q3-’23: +801
- Asking Lease Progress Since Q3-’23: -0.9%
- Asking Lease (Q3-’24): $1,393
- Efficient Lease (Q3-’24): $1,377
- Multifamily Emptiness Fee (Q3-’24): 11.0%
- Multifamily Cap Fee (Q3-’24): 6.0%
Supply: Nationwide Affiliation of Realtors
Chattanooga, TN Housing Market Statistics
- Median House Worth (Q3-’24): $329,100
- House Worth Appreciation Since Q3-’23: 5.1%
Supply: Nationwide Affiliation of Realtors
Chattanooga, TN Financial Statistics
- Inhabitants Progress (2023): 1.1%
- GDP Progress (2023): 5.4%
- Job Progress (Q3-’24): 2.3%
Supply: Nationwide Affiliation of Realtors
Lists That Point out Chattanooga, TN
- Rising Housing Markets Index – Winter 2024 (WSJ/Realtor.com): #121
- Rising Housing Markets Index – Spring 2024 (WSJ/Realtor.com): #65
- Markets to Watch – Total Actual Property Prospects (PwC/ULI): #71
- Finest Locations to Stay (U.S. Information): #27
Market #5: Nashville, TN
Nashville is probably the most populous metropolis in Tennessee, with 2,104,235 residents calling its metro space residence. Also known as a boomtown in recent times, Nashville’s metro space inhabitants has surged by 81% since 1990 as folks have been drawn in by its financial development and cultural enchantment, in addition to its affordability as compared with coastal cities.
Often known as Music Metropolis, Nashville’s deep-rooted connections to the music business draw many residents and guests every year to points of interest just like the Tennessee Performing Arts Middle, the Nation Music Corridor of Fame and Museum, and the Grand Ole Opry. Guests additionally take pleasure in Nashville’s many arts facilities and museums, together with the Frist Middle for the Visible Arts, the Cheekwood Botanical Backyard and Museum of Artwork, and the Tennessee State Museum. The CMA Music Pageant, the Tennessee State Truthful, the Nashville Movie Pageant, and numerous different occasions additionally carry many guests to Nashville every year.
Along with music, the healthcare, training, and automotive industries are necessary to Nashville’s economic system. Prime employers within the metropolis embody Vanderbilt College and its medical middle, the native, state, and federal governments, HCA Healthcare, Metropolitan Nashville Public Colleges, Ascension Saint Thomas, and Kroger Co. Fortune 500 firms which have workplaces in Nashville embody Nissan, Deloitte, Dell, BNY Mellon, Bridgestone, Philips, Greenback Basic, and Ernst & Younger. Along with Vanderbilt, there are a selection of different increased training establishments within the metropolis, similar to Tennessee State College, Belmont College, and Fisk College.
Nashville’s location alongside the Cumberland River made it a key buying and selling publish all through its early historical past. As we speak, its proximity to interstate highways, main rail strains, and the Nashville Worldwide Airport make it a outstanding transportation hub, in addition to a logistics and distribution middle for the area.
Nashville wasn’t on Buildium’s listing of up-and-coming actual property markets on account of its declining lease development and elevated emptiness charge in 2024—a results of intense provide stress over the previous couple of years. Nevertheless, development exercise is slowing, and rental demand stays sturdy. So, when you or your shoppers want to broaden right into a thriving secondary market in 2025, Nashville might be a robust contender when you discover a property that presents sturdy ROI potential.
Nashville, TN Rental Market Statistics
- Rental Stock (Q3-’24): 176,694
- Models Added Since Q3-’23: +2,881
- Asking Lease Progress Since Q3-’23: -0.9%
- Asking Lease (Q3-’24): $1,699
- Efficient Lease (Q3-’24): $1,666
- Multifamily Emptiness Fee (Q3-’24): 11.7%
- Multifamily Cap Fee (Q3-’24): 5.6%
Supply: Nationwide Affiliation of Realtors
Nashville, TN Housing Market Statistics
- Median House Worth (Q3-’24): $421,500
- House Worth Appreciation Since Q3-’23: 1.9%
Supply: Nationwide Affiliation of Realtors
Nashville, TN Financial Statistics
Lists That Point out Nashville, TN
- Rising Housing Markets Index – Winter 2024 (WSJ/Realtor.com): #125
- Rising Housing Markets Index – Spring 2024 (WSJ/Realtor.com): #61
- Markets to Watch – Total Actual Property Prospects (PwC/ULI): #5
- Finest Actual Property Markets – Giant Cities (WalletHub): #1
- Finest Locations to Stay (U.S. Information): #50
How Do We Determine the Finest Rental Markets in Tennessee?
We use the next sources to assist us verify the most effective rental markets within the U.S. throughout 5 totally different classes.
Trade Indicators
Measures of alternative for rental property buyers and property managers:
Housing Indicators
Measures of property costs and lease development:
Financial and Job Market Indicators
Measures of employment development:
Demographic Indicators
Measures of inhabitants development:
- Markets with the best inhabitants development, as measured by the Nationwide Affiliation of Realtors
- The fastest-growing actual property markets, as measured by U.S. Information
- The most effective locations to reside, based mostly on analyses of high quality of life and desirability, as measured by U.S. Information
Local weather Indicators
Measures of local weather vulnerability:
60 Up-and-Coming Actual Property Markets in 2025
In Buildium’s annual Up-and-Coming Actual Property Markets listing, we analyzed 175 metro areas throughout the U.S. to find out which cities present promise for rental buyers and property managers within the yr forward. Questioning the place else can rental buyers and property managers discover extra development alternatives in 2025? View the total listing of rising markets we’ve recognized throughout the nation.
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