News Summary
Knoxville is undergoing a significant transformation in its housing landscape, with multiple developments underway to meet the rising demand for affordable and residential housing. Key projects include the Medical Arts Building conversion, the renovation of the Walnut Building into a Holiday Inn Express, and the Lone Tree Pass project offering new homes. Initiatives targeting affordable housing are also gaining momentum, reflecting the city’s commitment to stabilize rental prices. As these developments progress, downtown Knoxville is set to see substantial changes in housing options for its residents.
Knoxville is experiencing a rapid acceleration in housing developments, highlighted by multiple projects aimed at addressing the city’s growing demand for residential and affordable housing. Recent trends indicate a shift in the market with significant conversions and new constructions underway, including the transformation of buildings for both residential and commercial use.
The Medical Arts Building has become a focal point of this growth, having added 49 residential units and three commercial spaces as of October. The newly converted condominium units primarily consist of one and two-bedroom configurations, ranging from 500 to 950 square feet. Currently, residential unit prices in the building range from $340,000 to $825,000, with prices per square foot generally falling between $500 and $600. Deeded parking spaces are available for $35,000 each, and over 60% of the residential units have been sold or are pending after just seven months on the market. However, only one unit allows for short-term rentals, while the majority of units prohibit this practice.
Further, the Walnut Building, which previously housed Urban Hair Salon and Yassin’s Falafel House, is undergoing renovations to become a Holiday Inn Express featuring 91 guest rooms. While Yassin’s Falafel House will temporarily close during construction, it plans to return to its original location post-renovation. In addition to the Walnut Building project, plans for an AC by Marriott at the corner of Walnut and Locust are also in progress, with completion scheduled for fall 2026. This hotel will offer 162 rooms and a rooftop bar to enhance downtown offerings.
Another significant development is the Lone Tree Pass project, which is swiftly nearing the finish line, featuring 57 residential homes and more than 22,000 square feet of commercial space. Pre-sales for these homes have already started, with an anticipated completion date in fall 2025. Meanwhile, the City Summit project is under construction and is expected to open in spring 2026, contributing 89 new homes aimed at affordable housing.
Affordable housing initiatives are gaining traction in Knoxville, such as the Historic Giffin Square apartment complex, which is reserved to provide 19 units for low-income renters within its total of 77 apartments. Completion is slated for October 2026. Additionally, the former Americas Best Value Inn has transformed into the Second Creek Studios, providing 85 studio apartments that support affordable housing efforts in the area. This renovation was undertaken by FIG Solutions, a nonprofit group, at a cost of $7.5 million to improve living standards for residents. The Giffin Grammar School building is also set for redevelopment, which will create additional residential spaces alongside the new construction of two buildings, bringing the total to 77 units.
The City of Knoxville is actively supporting numerous affordable housing developments aimed at stabilizing rental prices and creating a safe environment for families who are at risk of homelessness. In recent years, the city has backed 18 housing developments, including projects like Young High Flats and Middlebrook Gardens. These initiatives have come in response to the rising demand for housing solutions, a trend that seems set to continue as the market evolves.
The ongoing and upcoming housing projects in Knoxville reflect a strategic response to a significant housing demand, with an increasing focus on affordable options. As developers and the city prioritize these efforts, the landscape of downtown Knoxville is expected to change dramatically in the coming years, offering more housing solutions for its residents.
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Additional Resources
- Knox News: Giffin Grammar School Apartments
- CoStar: Second Creek Studios
- WATE: Apartments Replacing Hotel Knoxville
- WBIR: South High School Converted into Senior Living Apartments
- Inside of Knoxville: Medical Arts Homes
- Wikipedia: Affordable Housing
- Google Search: Knoxville housing developments
- Google Scholar: Knoxville affordable housing
- Encyclopedia Britannica: Knoxville
- Google News: Knoxville housing
