Western Tennessee Multifamily Builds Hit 2-Year Peak
Surging Development Activity in Western Tennessee In an unprecedented wave of development, Western Tennessee is experiencing a multifaceted surge in multifamily construction activity. Memphis has delivered around 553 new units in 2024, markedly boosting regional supply. Similarly, Knoxville has witnessed significant multifamily construction, exceeding 1,900 units within the past year. This construction boom is mirrored by dynamic absorption rates, with Knoxville absorbing over 2,000 units despite the expanded supply. Rising inflation and increased construction costs due to tariffs have led developers to focus on cost-effective practices, sustaining the momentum of ongoing projects. Western Knox County emerges as a development hotspot, housing 11% of its inventory under active construction. The robust pipeline, including 4,575 units underway in Knoxville by late 2024, reflects vigorous market momentum. Economic factors and demographic growth elevate demand for one- and two-star propert...