HOUSING CAN'T WAIT
TENNESSEE
Tennessee’s population has surged over the past decade.
According to the Tennessee State Data Center at the University of Tennessee, Knoxville, over 95% of counties saw growth in 2023, ranking Tennessee 4th in the nation for population growth. Rural counties are growing even faster than urban ones, and while the pace may slow, the population boom is far from over. Despite this growth, Tennessee has built just 6 housing units for every 10 jobs created. This has caused housing demand to far exceed supply. As a result, the median home price in Tennessee soared to $325,000 in 2022—a 44% increase since 2019.The impact? Working families, even those with good jobs in critical sectors, are being priced out of homeownership. In 86 of Tennessee’s 95 counties, the median home price is more than three times the median salary of a local teacher.
Fahe’s network of 16 Tennessee nonprofit builders is already making an impact.
With smart policies, strategic investments, and the dedication of housing experts, we can change this trend. From 2019 to 2023, the Fahe Network invested $333.4 million to improve the housing situation of 3,358 Tennessee households. This work included preserving 1,759 affordable homes through repairs, rehabilitation, and counseling, building 96 new single-family homes, and adding 54 new rental units—many in growing rural areas.
Success story
Fahe Member Kingsport Housing and Redevelopment Authority secured an $11.9 million HOPE VI revitalization grant from HUD to rebuild the Riverview community. Completed in 2010, the project produced or preserved 62 beautiful, affordable homes for purchase and rent, giving a new lease on life to one of Kingsport’s oldest neighborhood.
FACTS
The National Homebuilders Association estimates that building 100 single-family homes generates $32.3 million in local income, taxes, and revenue, along with 394 local jobs.
The impact doesn’t stop there. Each year, these 100 homes add over $5 million in local income and support 69 permanent jobs.
The Virginia Center for Housing Research at Virginia Tech (VCHR) reports that over 40% of Appalachian counties in Tennessee have a rental vacancy rate below 2%.
These “tight markets” lack housing inventory, driving up costs and worsening the housing crisis.
For comparison, the typical U.S. rental vacancy rate is 5-8%, according to the Census Bureau.
Housing is essential for economic growth.
Employers need quality housing nearby to attract and keep workers. About 67% of larger companies say a lack of housing makes retaining talent harder. Additionally, 58% report losing skilled employees because working families can’t find affordable housing.
FOR LAWMAKERS
Help us solve this challenge.
Learn how state investments in housing can generate housing opportunities for working families.
For TENNESSEE residents
If you are interested in becoming a homeowner, or want to explore refinancing options, check out Fahe’s lending arm, JustChoice Lending.
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