By Giulia CarbonaroShareNewsweek is a Trust Project memberHome values skyrocketed all across the country during the pandemic, as low borrowing costs and the rise of remote work sparked a nationwide homebuying frenzy amid an ongoing inventory shortage.
But while in some of the most overheated markets—especially those in the Sunbelt and the South—home values have since fallen due to a decline in demand and affordability challenges, it is one Tennessee city, Knoxville, which takes the crown for the city which has seen the biggest home value boom since 2019.
According to a new report by Realtor.com, home values in Knoxville have risen by 85.9 percent since October 2019—the highest increase in the nation.
Why It Matters
The sharp rise in home values over the past six years has played a crucial role in the current housing affordability crisis gripping the country. Parts of the country where housing was traditionally cheaper than the rest of the country have seen a massive influx of newcomers, with cities like Knoxville becoming so-called “pandemic boomtowns.”
Their popularity, however, came with sharp price hikes that have made them less affordable for locals—especially as other housing costs, including property taxes, borrowing costs, homeowners association (HOA) fees and home insurance premiums have also risen.
What To Know
Home values in the so-called Marble City have risen by roughly $190,000 between October 2019 and October 2025, according to Realtor.com—the biggest percentage increase in the country.
That is because Knoxville has been attracting newcomers for years now with its relatively affordable housing costs.
“Sellers were amazed when they had a $40,000 windfall that they didn’t expect. It was fun to be able to deliver that news,” Regina Santore, a real estate agent at Wallace Real Estate in Knoxville, told Realtor.com about the pandemic buyers in the city.
At the height of the pandemic, the city’s annual home value appreciation rate had soared to 28 percent.
“The amount of equity sellers realized [they had] was incredible, with some making $100,000 after owning for just a year,” Santore added.
Many of the other metropolitan areas in the top ten which experienced the biggest increases in home values since October 2019 have a similar story to Knoxville.
These include:
- Fayetteville-Springdale-Rogers, AR;
- Charleston-North Charleston, SC;
- Scranton-Wilkes-Barre, PA;
- Syracuse, NY;
- Portland-South Portland, ME;
- Rochester, NY;
- New Haven, CT;
- Charlotte-Concord-Gastonia, NC-SC;
- and Chattanooga, TN-GA.
What Happens Next
The U.S. housing market is experiencing a slowdown caused by a drop in demand due to the number of Americans struggling to afford both the cost of buying a home and owning one, which has risen since 2019.
This decline in demand is leading to a growth in inventory, especially in parts of the country which have experienced a construction boom since the pandemic, which in turn is pushing down prices. Nationwide, home price growth has decelerated significantly compared to the years between 2020 and 2022, and it has been around 1 percent since April, according to Redfin data.
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