Middle Tennessee State University’s latest “Housing Tennessee” report reveals a mixed landscape for the state’s housing market in the first quarter of 2024. The report, authored by Murat Arik, director of the MTSU Business and Economic Research Center (BERC), indicates annual improvements in home prices and single-family permits, driven by a growing workforce. However, it also highlights challenges such as declines in multifamily permits and persistent issues in mortgage tax collections.
“Tennessee’s housing market presented a mixed landscape for the first quarter of the year,” said Arik. “While employment and home prices showed notable increases, challenges such as declines in specific sectors and mortgage tax collections persisted. Resilience in single-family home construction is encouraging, but rising mortgage delinquencies and homeowner vacancy rates raise concerns. Moving forward, close monitoring of these trends is essential to ensure stability and growth in Tennessee’s housing market.”
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For a detailed breakdown, the full report is available on the MTSU BERC website here.
Key highlights from the report include:
– **Single-family permits** in Tennessee saw an annual increase of 24%, though there was a slight quarterly decline of 2.35%. In contrast, multifamily permits decreased both annually and quarterly across the state, the South, and the U.S.
– **Home prices** rose across all Tennessee Metropolitan Statistical Areas (MSAs). The Cleveland MSA had the largest increase at 14.6%, while Memphis saw the smallest rise at 0.9%. Morristown and Knoxville MSAs also experienced significant growth at 13.8% and 10.7%, respectively. Quarterly, home prices in Tennessee increased by 1.3%, compared to a 1% rise across the U.S.
– **Home closings** were up in all regions on a quarterly basis, with Memphis leading at 8.6%, followed by Nashville at 7.6%, and Knoxville at 4%. Annually, however, only Memphis showed an increase (8.65%), while Nashville and Knoxville experienced declines.
– **Inventory levels** grew annually in all regions, with Knoxville at 29%, Memphis at 15%, and Nashville at 5%. Quarterly increases were also noted in all regions, with Knoxville at 18%, Nashville at 10%, and Memphis at 8.4%.
The BERC report is funded by the Tennessee Housing Development Agency (THDA) and provides an overview of the state’s housing market, including data on employment, housing construction, rental vacancy rates, real estate transactions and mortgages, home sales and prices, delinquencies, and foreclosures. The BERC operates under the Jennings A. Jones College of Business at MTSU. For more information, visit this link.
THDA is committed to expanding affordable housing opportunities for low- and moderate-income Tennesseans through various programs and funding initiatives. For more information about THDA, visit their website.
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$1.3 Million Loan for Rocky Top Water Improvements
Tennessee Governor Bill Lee and TDEC Commissioner David Salyers announced a $1.3 million loan to Rocky Top for water infrastructure improvements, part of a broader $6.8 million initiative by the Tennessee Local Development Authority. The loan, from the Clean Water State Revolving Fund Loan Program, will focus on sewer line rehabilitation and incorporates green project elements, with a 20-year term at 1.24 percent interest. The program aims to provide low-interest loans to improve state water infrastructure, having awarded over $2 billion since 1987.