Wondering who is moving to East Tennessee and how it affects housing in Knoxville and the Smokies? You are not alone. Buyers, sellers, and investors are watching migration closely because it shapes demand, prices, and competition. In this guide, you will learn what is driving the trend, how it shows up in local neighborhoods, and what to watch so you can plan your next move with confidence. Let’s dive in.
Why people are moving to East Tennessee
Recent in‑migration to Tennessee has been steady, with East Tennessee capturing attention for its mix of affordability and outdoor access. Several practical factors are behind the flow.
Cost of living and tax advantages
Lower housing costs compared to many coastal metros pull new residents to the region. Tennessee’s lack of a state income tax often appears on the checklist for relocating buyers who track long-term expenses and retirement planning. When you combine housing affordability with overall lifestyle value, East Tennessee competes well against higher-cost markets.
Quality of life and remote work
Remote and hybrid work opened the door for people to choose lifestyle first. The Great Smoky Mountains, lakes and rivers, and smaller-city amenities make the Knoxville area and nearby mountain communities appealing. If you want trails on the weekend and an easy airport, this corridor offers both.
Jobs in the Knoxville–Oak Ridge corridor
Growth in research, energy, advanced manufacturing, and healthcare continues to draw people to the Knoxville–Oak Ridge area. The University of Tennessee, Oak Ridge National Laboratory, and regional health systems support a steady base of new, job-driven residents. That demand shows up in both the purchase and rental markets.
Where new residents are coming from
Patterns since 2020 show notable inflows from higher-cost Northeastern and Western states. Many movers report leaving places like New York, New Jersey, California, and Illinois for cost and quality-of-life reasons. You also see some regional reshuffling as retirees, young families, and remote professionals compare options across the Southeast. While the mix changes year to year, the consistent theme is budget stretch and lifestyle upgrade.
How migration impacts Knoxville housing
Migration does not affect every neighborhood equally. Understanding where and how demand lands will help you time and target your search or sale.
Demand patterns in neighborhoods
You see strong interest in suburban nodes with newer homes and schools, including Farragut, West Knox, and Hardin Valley. At the same time, in-town areas with walkability and amenities, such as Bearden and Sequoyah Hills, draw buyers who want convenience. Job-driven buyers also look close to the Oak Ridge–UT research corridor to shorten commutes.
Inventory, new construction, and pricing
Inventory tightened during the 2020–2022 surge and, while higher mortgage rates cooled activity, the most desirable price ranges still run lean. New construction tends to concentrate on the suburban fringe where land and approvals are more available. Price growth has moderated from the peak pandemic years, but well-priced homes in popular areas still attract multiple offers. Entry-level segments often see the most competition.
Rental market dynamics
As more people moved in, rents increased and long-term rental vacancies tightened. Some would-be buyers stayed renters longer or looked farther out to find value. If you are relocating for a job, understanding rental options and timing your move-in can help you bridge to a purchase.
How migration impacts the Smokies and gateway towns
Smoky Mountain communities have two distinct demand streams: investors seeking rental income and lifestyle buyers seeking a retreat. The balance between them shapes pricing and inventory.
STR and investor demand
Tourism-driven short-term rental demand is a major force in Gatlinburg, Pigeon Forge, and Sevierville. Investors pursue cabins and condos for income potential, and strong visitation has supported activity. That investor interest can limit the supply of long-term housing and push prices higher in certain pockets.
Lifestyle and second-home buyers
Buyers who want access to the park and a quieter pace often focus on Townsend, Wears Valley, and parts of Blount County. Here, privacy, views, and proximity to trailheads or rivers are common priorities. Some owners rent a few weeks per year to offset costs, while others prefer personal use only.
Regulation, seasonality, and land constraints
Short-term rental rules vary by city and county, and permit requirements, occupancy limits, and taxes influence investor decisions. Markets with tighter rules often see slower investor-driven price jumps. Seasonality also matters. Listing activity, pricing, and days on market move with tourism patterns. Finally, limited buildable land on ridgelines and in narrow valleys creates scarcity and price premiums in certain submarkets.
What to watch in the months ahead
The best way to read these markets is to track a handful of indicators and tie them to your goals.
Key metrics to track
- Months of inventory and active listings to gauge negotiating leverage.
- New listings and pending sales to read market heat.
- Median sale price and price per square foot by ZIP or neighborhood to set expectations.
- Median days on market and share of homes sold over list price for competition levels.
- Building permits and housing starts to understand future supply.
- Rental vacancy and median rent trends if you are weighing buy-versus-rent.
- Short-term rental permit counts and seasonal occupancy if you are evaluating cabins or condos.
- Employment and wage trends near UT, ORNL, and major health systems for steady demand signals.
- Visitor counts in Great Smoky Mountains National Park to correlate with STR interest.
Buyer playbook: Knoxville
If you plan to buy in Knoxville or Knox County, focus on speed, clarity, and fit.
- Get fully pre-approved so you can act quickly on well-priced homes.
- Define your commute needs relative to UT, ORNL, or downtown. Demand is strongest near job centers.
- Compare in-town convenience with suburban new-build options and weigh tradeoffs in HOA fees, lot size, and road access.
- Watch the months-of-inventory trend. When it dips, keep offers clean and timelines short. When it rises, negotiate repairs and concessions.
- Consider nearby alternatives if your top area is tight. Adjacent neighborhoods can offer similar features with better availability.
Buyer playbook: Smoky Mountains
If you are eyeing the Smokies, decide early whether your purchase is primarily for investment or lifestyle.
- Clarify your goal: STR cash flow, hybrid use, or personal retreat.
- For STRs, analyze seasonality, local permit rules, and operational needs such as cleaning, maintenance, and guest access.
- For second homes, focus on access, road grade, utility reliability, insurance, and year-round maintenance.
- Understand that steep-slope and floodplain properties can add cost or complexity for insurance and construction.
- Expect pricing and activity to shift with tourism seasons; plan searches and offers around that rhythm.
Seller strategy in a shifting market
Migration still supports demand, but pricing discipline matters.
- Prepare your home thoroughly. Clean, repair, and stage so buyers see value on day one.
- Price to the most recent comparable sales and active competition to invite multiple offers.
- In higher-price bands or off-season windows, allow longer marketing timelines and invest in targeted marketing.
- If you own a cabin or condo, highlight income history, permits, and guest-ready features that matter to STR buyers.
How Kelly helps you navigate both markets
Buying or selling in Knoxville and the Smokies rewards data and local judgment. You deserve both. As an active overnight-rental operator and a high-volume local agent, Kelly pairs on-the-ground STR experience with neighborhood-level market insight across Sevier County and the Knoxville region. You get responsive communication, real analysis on returns, and transaction execution that keeps your goals front and center.
Ready to plan your next move or build your mountain portfolio? Reach out to Kelly White for a clear strategy and listings tailored to your goals.
FAQs
What is driving people to move to East Tennessee?
- Lower housing costs, no state income tax, outdoor lifestyle, remote work flexibility, and job growth in the Knoxville–Oak Ridge corridor.
How does migration affect Knoxville home prices?
- It expands the buyer pool, keeps inventory tight in popular areas, and supports prices, with well-priced homes still drawing strong interest.
Where are Knoxville and Smokies buyers coming from?
- Many newcomers arrive from higher-cost Northeastern and Western states, with a mix of retirees, young families, remote workers, and investors.
What should Smoky Mountain STR investors evaluate first?
- Confirm local short-term rental permit rules, study seasonal occupancy, and model operating costs for cleaning, maintenance, utilities, and insurance.
Are there good options for second-home buyers who do not want tourist congestion?
- Yes. Areas like Townsend and Wears Valley offer quieter settings with park access, though land and view premiums can affect pricing.
What market indicators should buyers and sellers watch monthly?
- Months of inventory, new listings, pending sales, median price, days on market, and any changes to local STR permitting or building activity.
