Knoxville, an Emerging City on the Rise
Over the last ten years, housing absorption has greatly outpaced supply in this growing Tennessee city. With Knoxville positioned as one of the top ten cities for net-migration in recent years – with dramatically more people moving in than moving out – the demand of this city tucked amid the Great Smoky Mountains is only increasing.1
Tennessee has no state income tax, a cost of living (COL) 17.7% lower than the national average and goods and services (G&S) 11.6% below the national average. Knoxville was ranked the #10 best city to buy a home in 2023, but over 30% of Knoxville residents are renters.2 These fundamentals contribute to a compelling risk-adjusted return profile from an investment perspective.
Multifamily rental communities, like Livano Knoxville in Capital Square’s OZ VIII, are in demand.
Discover Knoxville, Tennessee
- Corporate headquarters of Pilot Flying J, Covenant Health and Smith & Wesson
- Home to Oak Ridge National Laboratory, the largest multiprogram system in the DOE, and national defense manufacturer Y12
- 14 million visitors annually to the Great Smoky Mountains
- 80+ public parks
- 33,805 students enrolled at UT Knoxville, in addition to 1,700 academic and 9,500+ administrative staff
- Home of the Women’s Basketball Hall of Fame
- Home of the Knoxville Smokies (MiLB) whose new downtown stadium is projected to open in 20254
Why Opportunity Zones make sense:
With the passage of the Tax Cuts and Job Acts of 2017, each state and five U.S. territories were able to designate up to 25% of eligible census tracts as opportunity zones, resulting in nearly 9,000 active opportunity zones across the country. Designed to stimulate long-term private investments in low-income urban and rural communities nationwide, Opportunity Zones, like Capital Square’s OZ8 in Knoxville, connect private capital with economic growth – answering the multifamily rental demand across the United States.
1 “Knoxville Market Update: Multifamily | Q4 2022,” Newmark, 2023.
2 ibid.
3 “The University of Tennessee-Knoxville Factbook,” accessed March 21, 2023, https://irsa.utk.edu/reporting/fact-book
4 “Knoxville Market Update: Multifamily | Q4 2022,” Newmark, 2023.
