Summary
Home values across the U.S. rose significantly during the pandemic, with Knoxville, Tennessee experiencing the highest increase since 2019. A report states Knoxville's home values went up by 85.9%, contributing to the current housing affordability issue. This trend has slowed due to declining demand and increasing inventory.
Key Facts
- Home values jumped nationwide during the pandemic because of low borrowing costs and more people working from home.
- Knoxville, Tennessee saw the biggest increase in home values with an 85.9% rise since October 2019.
- The increase in Knoxville equated to about $190,000 rise in home prices by October 2025.
- Knoxville attracted many newcomers due to previously affordable housing, labeling it a "pandemic boomtown."
- Rising home costs, including property taxes and insurance, have made these areas less affordable for locals.
- Metro areas like Fayetteville, Charleston, Scranton, and others also saw significant home value increases.
- A slowdown in the housing market is occurring as fewer Americans can afford homes, increasing availability and dampening price growth.
- Nationwide, home price growth has slowed to about 1% since April.
