Knoxville-Knox County Planning: 2023 Development Activity Report Available

According to Planning’s recently released 2023 Development Activity Report, the local construction industry recorded another big year, with the value of new residential construction exceeding one billion dollars for the first time.

Demand for housing continued to outpace supply, held back by rising interest rates, high construction material costs, and labor shortages. Despite these challenges, 2023 saw a record-high number of local residential permits, totaling 5,197. The Northwest County Sector led significantly in new residential units, reaching 2,003–a 100.5 percent increase from 2022. The South City Sector came in second with 639 new residential units, and these two sectors alone account for half the residential permits.

South City also had the largest apartment project of the year with the 348-unit Livano Knoxville, valued at $81.5 million. In terms of residential subdivision approvals, Northwest County came out on top with 13 new plats delivering 555 lots on 230 acres.

Non-residential construction saw a slight decrease, with 127 permits compared to 180 permits in 2022. High-value projects are distributed across various sectors including the Multi-Use Stadium in the South City Sector, Innovation South in South County and the second phase of Mill Creek Elementary School in Northwest County.

Despite ongoing disruptions to the labor market and supply chain, residential growth continues to expand and non-residential growth remains steady in Knox County. Demand shows no signs of slowing, and multi-family units continue to account for nearly half of residential growth, providing more housing choice for area residents.

For more information, view the full report, or visit knoxplanning.org/data for past versions. For a screen-reader accessible version of this report, contact Aubrey Weiland at aubrey.weiland@knoxplanning.org or 865-215-3832.