Tennessee Housing Market Trends

Real-time market data powered by Zillow Research. Last updated: 2026-04-02

Nashville continues to be one of the nation's fastest-growing metros, with Amazon Operations hub, Oracle, and Alliance Bernstein among the major corporate relocations that have fueled housing demand. East Nashville, Germantown, and the Nations have transformed from undervalued neighborhoods to premium addresses. Memphis offers extreme affordability and has attracted investment from housing companies recognizing value in the city's established neighborhoods. Chattanooga's investment in fiber internet infrastructure has attracted tech workers and remote employees. Knoxville benefits from University of Tennessee employment and proximity to the Great Smoky Mountains.

By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Zillow Research, U.S. Census

Is Now a Good Time to Buy in Tennessee?

The Tennessee housing market is showing balanced conditions.

home values have been essentially flat (-0.2%) over the past year. there are currently 1,459 homes on the market.

Median Home Value

$327,696

Zillow Home Value Index

Year-over-Year

-0.2%

Home value change

5-Year Change

+38.3%

Since 2021

Median Rent

$1,391/mo

Zillow Observed Rent Index

Active Listings

1,459

Homes for sale

Home Value Trends

5-year Zillow Home Value Index (ZHVI) for Tennessee vs. national average. ZHVI reflects the typical home value in the 35th-65th percentile range.

Rent Trends

Average rent in Tennessee: $1,391/mo (+2.8% YoY)

Rent vs. Buy Analysis

With a median home value of $327,696 and average rent of $1,391/mo, the price-to-rent ratio in Tennessee is 19.6. A ratio of 15-21 means it could go either way — run the numbers.

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