Tennessee Home Prices Surge 122.6% Over Decade

Over the past decade, U.S. home prices have surged by more than 95%, significantly outpacing the 44% increase in average hourly earnings and the 33% rise in the Consumer Price Index. This dramatic increase has led to a decline in housing affordability, impacting many would-be homebuyers while existing homeowners have seen substantial gains in their real estate wealth. Although recent home price growth has begun to stabilize after unprecedented rises following the COVID-19 recession, inflation and high mortgage rates above 6% continue to strain purchasing power. States in the West and South Atlantic have experienced the most significant price increases, with Tennessee's home prices rising by an average of 122.6% over the past decade. Major cities like Knoxville and Nashville have seen sharp increases, with Knoxville's median home price climbing to over $350,000 from just above $147,000 in 2014. The uneven recovery trajectory post-recession highlights the challenges facing homebuyers amid persistent economic pressures.