City releases strategy to meet housing challenges
February 23, 2024, 8:33 p.m.

One of Knoxville's housing development projects; image courtesy of City of Knoxville

KNOXVILLE - On Thursday, Feb. 11, 2024, Housing and Neighborhood Development Director Kevin DuBose led a presentation to City Council about the state of housing in Knoxville. He and other City staff presented issues that have created housing challenges for many people in Knoxville, as well as the City’s strategy to utilize multiple tools to support the development of 6,000 to 8,000 new housing units by 2029.

The City has invested more than $40 million in the development of affordable housing since 2020, leveraging an additional $600 million in public and private investments. The result is more than 2,300 new units of affordable housing being built or in the process of development at this date.

The Housing Strategy Update report presents key strategies the City is implementing to support the construction of housing units accessible to all income levels, including:

• Boost funds available through Knoxville’s Affordable Housing Fund
• Preserve Naturally Occurring Affordable Housing (NOAH)
• Increase housing stability through activities of the Office of Housing Stability
• Advance land use policy
• Redevelop vacant and blighted properties

These strategies respond to the variety of issues of supply, attainability and affordability that are affecting Knoxville’s housing market, including:

• Demand his higher than supply. Housing construction slowed to a crawl following the housing crisis and following recession. The pace of construction has increased recently.

• Many residents are cost burdened. Almost half of all Knoxville rental households pay more than 30 percent of their income on rent.

• Competition is pricing out residents at multiple income levels. Households with incomes of less than $20,000 are competing with households with incomes over $50,000 for the same limited homes on the market.

More information about the City’s investments, activities and programs to preserve and build affordable housing is posted at KnoxvilleTN.gov/development and KnoxvilleTN.gov/housing.