MURFREESBORO, TN (WGNS) - Tennessee’s housing market wrapped up the final quarter of 2025 with a mix of steady growth, a few soft spots, and plenty of signs that the state’s real estate landscape is still shifting, according to the latest statewide report from Middle Tennessee State University’s Business and Economic Research Center.
Dr. Murat Arik, who leads the center, said the overall picture remains stable, even as some metro areas posted slight quarterly price dips. “Home prices continued to rise statewide, although several metropolitan areas experienced slight quarterly price declines, highlighting uneven price trends across the state,” Arik explained.
Statewide, home prices rose 0.7% over the quarter, while the national increase came in a bit higher at 1.2%. Most Tennessee metros saw gains, but the pace varied widely.
Jackson led the pack with a striking 4% jump—its strongest showing of the year. Johnson City followed with a 3% increase, and Kingsport–Bristol wasn’t far behind at 2.5%. Memphis posted a solid 2.1% rise, while Chattanooga and Cleveland saw more modest growth at 1.4% and 0.9%. Nashville, often the state’s bellwether, recorded a 1.2% increase.
But not every metro moved in the same direction. Clarksville saw a fractional 0.06% decline, Knoxville dipped 0.12%, and Morristown posted the largest quarterly drop at 0.3%. Even so, those declines were small enough that they didn’t disrupt the broader statewide trend.
Looking at the full year, every Tennessee metro posted positive home price growth. Morristown, despite its quarterly dip, actually led the state in annual gains with a 6.4% increase. Cleveland followed at 4%, and Johnson City, Kingsport–Bristol, and Chattanooga all logged healthy year-over-year growth. Nashville and Memphis saw slower appreciation, suggesting those markets may be settling into a more stable pattern after years of rapid escalation.
The full report—available at mtsu.edu/berc/housing—includes deeper dives into construction permits, foreclosures, delinquencies, inventories, and employment data. One notable highlight: construction permits showed renewed quarterly strength, a sign that builders may be responding to ongoing demand.
The quarterly housing report is funded by the Tennessee Housing Development Agency, which supports affordable housing efforts statewide. THDA’s work includes home loans, funding for local agencies, and the administration of multiple federal programs aimed at expanding safe, affordable housing for low- and moderate-income Tennesseans.
As 2026 gets underway, the data suggests a housing market that’s steady, still growing, and still very much shaped by local conditions.
