NASHVILLE, Tenn. (July 6, 2026) – The Tennessee Housing Development Agency (THDA) released the 2026 Housing Market at a Glance series, finding that Tennessee will need approximately 315,000 new homes by 2035 to keep pace with the growing population and to replace the increasing stock of aging homes.
The series, comprised of five briefs, offers housing partners an assessment of the biggest issues in the state’s housing market through a needs and housing market analysis and examines where the state’s housing market is headed over the next decade.
The report highlights that while housing production has grown throughout Tennessee over the past several years, affordable housing needs continue to outpace the supply. Housing challenges differ across the state, with rapidly growing communities such as Knoxville and Clarksville facing particularly severe housing shortages.
Additionally, the report finds that affordability remains a major challenge for Tennessee families. Between 2015 and 2024, the median household income increased by 52%, while the median home price rose by 200% making homeownership increasingly difficult. It was reported in 2024 that only 32% of homes sold in Tennessee were affordable to a household earning the median income, a stark contrast to the 71% reported in 2019.
The full 2026 Housing Market at a Glance report series is available on THDA’s website.
THDA is the state’s housing financing agency and works to promote the production, preservation and rehabilitation of affordable housing for very low-, low- and moderate-income families and individuals across Tennessee.