The Knoxville, TN Metropolitan Statistical Area, made up of nine East Tennessee counties (Anderson, Blount, Campbell, Grainger, Knox, Loudon, Morgan, Roane, and Union), is anchored by its namesake city and home to the University of Tennessee, one of the state’s largest universities and its defining institution. Fall 2025 enrollment hit an institutional record of 40,421 students, continuing six straight years of growth. The MSA’s economy is diversified across advanced manufacturing, healthcare, energy/nuclear technology, and tourism. Covenant Health, the region’s largest private employer with 11,000+ employees, anchors a robust healthcare sector alongside the University of Tennessee Medical Center. Just northwest of the city, Oak Ridge National Laboratory and the Y-12 National Security Complex make Oak Ridge one of the nation’s premier hubs for nuclear science and national security research and are driving a wave of new federal investment. Knoxville is known for its gateway location to the Great Smoky Mountains, its passionate UT sports culture, and a growing reputation for livability — moveBuddha recently projected it as the #1 city Americans will move to in 2026. Downtown’s revitalization, anchored by the new Covenant Health Park stadium, reflects the MSA’s continued momentum as both a business and quality-of-life destination.

 

 

Knoxville Economy

Knoxville’s economy is anchored by advanced manufacturing, healthcare, energy/nuclear technology, and education. DENSO Manufacturing Tennessee (Maryville) remains a 5,000-employee staple, alongside Clayton Homes and other regional manufacturers within the MSA. The most significant story is nuclear energy: Orano USA‘s Project IKE, a ~$5 billion uranium enrichment facility in Oak Ridge and the largest investment in Tennessee history, received $900 million in U.S. Department of Energy funding in January 2026 and is expected to create 300+ direct jobs in Roane County. Y-12 National Security Complex now employs approximately 8,600, and Oak Ridge National Laboratory has grown to more than 7,000 staff. Recent manufacturing wins include Greenheck Group’s $300 million, ~2,000-job corporate campus (groundbreaking May 2025) and Aqua Membranes’ new 94-job facility. Healthcare remains a top employment sector, led by Covenant Health and the University of Tennessee Medical Center.

Knoxville Population

 

The 9-county Knoxville MSA had an estimated 2025 population of 968,137, up from 906,075 in 2020, growth of 6.85%. July 2026 unemployment stood at 3.0%, well below the national rate. Knox County (511,453) continues to anchor roughly half the MSA’s population, with Loudon County (15.63%), Grainger County (9.19%), and Union County (8.08%) among the fastest-growing counties in the region (2020-25).

Demographics

Total Population
968,137
Population Growth (2020-25)
6.85%
Unemployment Rate (July 2026)
3.0%

Multifamily Highlights

Knoxville, TN Multifamily Analysis

 

Knoxville’s multifamily market comprises 51,688 units across roughly 315 properties (50+ units) as of Q3 2026, following a decade of aggressive expansion. The market delivered 1,768 units over the trailing 12 months, close to its five-year average of 1,900 annually, while absorption reached 1,925 units, confirming that renter demand remains fundamentally strong even as new supply saturates the market.

Supply & Vacancy Trends. Vacancy has climbed to 7.8%, as record deliveries have outpaced even historically strong absorption. The 4 & 5 Star segment carries the highest vacancy at 10.3%, reflecting its outsized share of recent lease-up activity, while 1 & 2 Star assets remain tight at 5.5%.

Rent & Affordability. Average asking rent stands at $1,512/month, several hundred dollars below the $1,800 national average, and closely aligned with nearby Chattanooga. Twelve-month asking rent growth has slowed to 0.4%, as elevated supply has removed pricing power across the market.

Construction & Development Activity. The pipeline has cooled meaningfully: 2,688 units remain under construction across 13 properties. Construction starts have slowed materially due to elevated borrowing and construction costs, which should ease supply pressure and support a return to more normalized vacancy and rent growth into 2027.

Primary Source: CoStar

Major Employers

  1. Covenant Health

    11,000 jobs / 1,335 beds  | Learn More
  2. Y-12 National Security Complex

    8,600 jobs  | Learn More
  3. The University of Tennessee - Knoxville

    8,503 jobs / 40,421 students  | Learn More
  4. Oak Ridge National Laboratory

    7,000 jobs  | Learn More
  5. University of Tennessee Medical Center

    5,387 jobs / 710 beds  | Learn More
  6. DENSO Manufacturing

    5,000 jobs  | Learn More
  7. Dollywood

    4,000 jobs  | Learn More
  8. Tennova Healthcare

    2,900 jobs / 424 beds  | Learn More
  9. Blount Memorial Hospital (Prisma Health)

    2,700 jobs / 304 beds  | Learn More
  10. Clayton Homes HQ

    2,653 jobs  | Learn More
  11. TeamHealth

    2,260 jobs  | Learn More
  12. UCOR

    2,200 jobs  | Learn More
  13. Dolly Parton Children's Hospital

    2,167 jobs / 152 beds  | Learn More

Other Demand Drivers

  1. Dollywood

    Roughly 3.5 million visitors annually  | Learn More
  2. Neyland Stadium

    101,915 capacity; home of UT Volunteers football  | Learn More
  3. West Town Mall

    1.3M SF; Major tenants include: Belk, JCPenney, Dillard's, and Dick's House of Sport  | Learn More
  4. Knoxville Zoo

    53-acre zoo with 700+ animals  | Learn More
  5. Center at Deane Hill

    389,000 SF; Food City, Kohl's, Burlington, and PetSmart  | Learn More
  6. Covenant Health Park

    Home to Knoxville Smokies (MiLB) and One Knoxville SC (USL)  | Learn More

Sources & Comments

1. The Knoxville, TN Metropolitan Statistical Area consists of 9 counties, according to Office of Management and Budget. Counties include: (1) Anderson (2) Blount (3) Campbell (4) Grainger (5) Knox (6) Loudon (7) Morgan (8) Roane (9) Union

2. Primary Sources: (1) https://fred.stlouisfed.org/ (2) CoStar (3) www.bls.gov

3. Sales Comps are from 08/25 – 08/26

4. Development Pipeline as of 08/26

5. This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty, or guarantee, expressed or implied as to its accuracy