MURFREESBORO, Tenn. — Tennessee’s housing market showed mixed but stable conditions in the fourth quarter of 2025, with home prices continuing to rise, construction permits showing renewed quarterly strength, and mixed results among major metros, according to the latest statewide report from Middle Tennessee State University.

“Home prices continued to rise statewide, although several metropolitan areas experienced slight quarterly price declines, highlighting uneven price trends across the state,” noted Murat Arik, director of the MTSU Business and Economic Research Center in the Jones College of Business and author of the report.

Home prices up with mixed metro-level trends

• Quarterly: Home prices continued to increase across Tennessee and the United States, though gains remained moderate.

Over the quarter, home prices in Tennessee rose by 0.7%, while home prices increased slightly faster at 1.2% nationally. While the majority of metropolitan areas experienced positive price growth, a few markets recorded modest declines, highlighting continued variation in housing market conditions across the state, Arik noted.

The quarterly trends for metropolitan areas are:

• Strong growth areas: The Jackson MSA recorded the largest quarterly increase in home prices, rising 4%, followed by the Johnson City (3%), and the Kingsport-Bristol MSA also experienced strong growth, with home prices rising 2.5% during the quarter.

• Moderate growth areas: The Memphis MSA recorded moderate growth of 2.1%, while Chattanooga and Clevelandposted increases of 1.4% and 0.9%, respectively. Home prices in the Nashville MSA also increased modestly by 1.2%.

• Declining areas: A small number of MSAs experienced slight quarterly price declines. Home prices in Clarksvilledeclined marginally by 0.06%, while the Knoxville MSA recorded a 0.12% decrease. Morristown saw the largest quarterly decline, with prices falling 0.3%.

• Annual overview: On a year-over-year basis, home prices increased by 3% in Tennessee, slightly below the 3.3% national increase. All Tennessee metros recorded positive annual home price growth. 

The Morristown MSA posted the strongest annual gain at 6.4%, followed by the Cleveland MSA at 4%. Other markets, including Johnson City, Kingsport–Bristol, and Chattanooga, also recorded solid annual growth. In contrast, price appreciation was more modest in the Memphis and Nashville metros, suggesting stable housing conditions.

Find the full report dashboard with more detailed breakdowns, including housing permits, foreclosures and delinquencies, inventories, and employment data, at https://www.mtsu.edu/berc/housing/.

About the report

BERC’s report is funded by the Tennessee Housing Development Agency, or THDA. The quarterly report offers an overview of the state’s economy as it relates to the housing market and includes data on employment, housing construction, rental vacancy rates, real estate transactions and mortgages, home sales and prices, delinquencies and foreclosures.

The Business and Economic Research Center operates under the Jennings A. Jones College of Business at MTSU. For more information, visit http://mtsu.edu/berc/.

About THDA

THDA is the state’s housing finance agency committed to expanding safe, sound, affordable housing opportunities for low- and moderate-income Tennesseans. This is achieved through a robust home loan program, competitive funding for local nonprofit and municipal agencies, and the administration of nine federally funded programs. 

THDA publishes research on affordable housing, THDA programs, and beneficiaries. THDA also coordinates state planning for housing through the Consolidated Planning process, annual Action Plans, and annual Performance Reports. See http://thda.org for more information.

— Jimmy Hart (jimmy.hart@mtsu.edu)