Continued Growth in Northwest and Southwest County Sectors

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Continued Growth in Northwest and Southwest County Sectors

May 10, 2019 | More News

According to Planning’s recently released 2018 Development Activity Report, the local construction industry had another big year in 2018.

Residential building activity remained strong with 2,688 new units. That number reflects a small downturn from the previous year, though still 10% higher than activity reported five years earlier.

Even with this year’s slowdown, the local homebuilding market is still healthy, especially when compared to the lows seen earlier in the decade when the market was emerging from a housing crisis.

Once again, the Northwest County Sector led the way in new residential building, reporting 891 units. The 119 lots in the Laurel Ridge subdivision and 252 apartments at Overlook at Farragut helped drive those numbers up. The Southwest County Sector also saw impressive growth, reporting 617 new units, with more than half of those in the Legends at Westland apartment complex.

Overlook at Farragut Apartment Complex

Non-residential building made considerable gains in 2018, up 137.3% from 2014. Another indicator that this market is strong is the increase in value of new construction and renovation. In 2018, permits for new construction for non-residential building totaled $151.1 million, up from the previous year’s $143.2 million. The value of renovations was up from $184.6 million in 2017 to $249.3 million in 2018. Like residential trends, the Northwest County Sector led the way in non-residential building, with the Southwest County Sector a close second.

Parkwest Medical Center

Figures presented in the Development Activity Report also serve as a barometer of future investment. This year’s activity indicates growth in the Northwest and Southwest County Sectors will continue at least for the next few years, both in residential and non-residential activity.

The two sectors combined for 69 percent of new subdivision lots created and the Northwest County Sector accounted for 36 percent of rezoned acreage.

Knoxville-Knox County Planning has been reporting on development activity annually for more than 30 years. Contact Terry Gilhula in our Information Services division or visit our website for past reports.