A new report shows new home construction in the Knoxville area for the first quarter of this year increased at a fast pace. New home construction was up 30 percent for the Knoxville area for the first quarter this year compared to last year.
The Knoxville area includes nine East Tennessee counties. Knox, Blount and Jefferson counties saw significant growth while Hamblen, Monroe and Roane counties saw little to no change.
Local industry experts didn't expect to see such a spike in growth, and they aren't exactly sure why it's happening.
"Typically it's job growth, but that's the anomaly, why is the number so strong because we don't have the job growth, at least the numbers, to support it. It could be people moving in, it could be people starting companies, and it certainly could be pinned up demand, but we are seeing this not as a short-term thing, but this has been a percent increase that we have seen happen now for nearly two years, so it's definitely a more stable trend happening," said Dale Aikens with The Market Edge.
If construction continues at the current pace for the rest of the year, it would be the strongest year for new homes since 2008.