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Knoxville, Tennessee is one of the fastest growing mid-size cities in America, attracting thousands of new residents a year, according to recent data.
More Americans are moving from large metropolitan areas to mid-size cities and Knoxville was among the top destinations with 70% of moves inbound in 2023, behind only Wilmington, North Carolina, and Santa Fe, New Mexico, according to a new study released by Mayflower Transit. Knox County, which includes Knoxville, expects to have about 557,000 residents by 2040, which is a 16% increase from 2020, the Knoxville News Sentinel reported.
Mayflower surveyed thousands of individuals across the U.S. over the course of the last two years to determine the factors that drove them to choose a particular city and 91% of movers said cost of living was one of the key factors when deciding where to buy a home. According to data collected by RentCafe.com, the cost of living in Knoxville is 4% lower than the state average and 14% lower than the national average, with housing costs 28% below the national average.
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Boats in the Vol Navy on the Tennessee River outside Neyland Stadium with the Knoxville skyline in the background prior to a game between the Indiana State Sycamores and Tennessee Volunteers on September 9, 2017, at Neyland Stadium in Knoxville, TN. (Getty Images)
"Knoxville offers a compelling blend of low living costs, quality education anchored by the University of Tennessee, and a strong sense of community," real estate, business and finance expert Jarrod Randolph told Fox News Digital. "Its appeal is further enhanced by its proximity to outdoor activities as a gateway to the Smoky Mountains, vibrant downtown, and cultural richness, making it an attractive destination for diverse demographics."
Nearly half of movers said proximity to arts and cultural venues played a role in where they moved, about two thirds said the weather was a leading factor, while over 60% said proximity to parks, green spaces and nature trails was important, according to Mayflower data.
"While larger cities have traditionally been associated with higher expenses, mid-size cities offer a more affordable lifestyle without compromising on amenities and opportunities," Mayflower’s Vice President of Corporate Communications Eily Cummings said in a press release. "Our customers are sharing incredible stories of the importance of living near an abundance of outdoor space, where they have access to arts and cultural venues, some nightlife and less traffic. As the benefits of living in mid-size cities become more apparent, it is expected that this trend will continue to shape the future of urban living across the country."
In addition, 32% of people said they decided to make the move to a mid-sized city to be closer to family, 28% pointed to financial considerations, 19% said it was because they had accepted a new job and 61% of movers said higher pay was a determining factor in their decision to relocate.
Mid-sized cities also often offer a strong sense of community and a slower pace of life when compared to urban areas, according to Mayflower. Residents of mid-sized cities reported feeling more connected to their neighbors and experiencing a greater sense of belonging.
"Knoxville isn’t a small town, but it’s not big like Los Angeles," Ron Wollard, who recently moved from California to Knoxville, Tennessee, to be closer to family, told Mayflower. "There is lots to do, Smoky Mountain National Park is right here so there are recreational opportunities and a thriving economy. It is a nice blend, and it is not a problem getting from one place to another."
The Tennessee Theater in downtown Knoxville, Tennessee, U.S., on Friday, May 1, 2020. Photographer: Luke Sharrett/Bloomberg via Getty Images (Luke Sharrett/Bloomberg via Getty Images)
The U-Haul growth index, which looks at one-way customer moves during the past year, included Knoxville as its 17th destination among the top 25 U.S. growth cities of 2023.
"Knoxville has a great sense of community and is naturally beautiful. It’s no surprise that people want to move here," U-Haul Company of Knoxville president Clay McQuade said in a press release. "I think we are continuing to see the trend of people moving from large metro areas into small and mid-size cities."
Randolph said a main reason why mid-sized cities are growing in popularity when compared to large metropolitan areas is largely as a result of shifting preferences among millennials.
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"A key demographic in this migration are millennials, who are increasingly prioritizing work-life balance, affordability, and quality of living," he said. "Their movement towards mid-size cities reflects a shift in lifestyle preferences, away from the high costs and density of large urban centers."
"The city's diverse economy, encompassing sectors like automotive, aerospace, energy, healthcare, and high-tech, contributes to its appeal," he added. "Knoxville's job market is robust, with a notable presence of high-tech industries and significant growth in tech-related GDP."
Randolph serves as CEO and Managing Partner of real estate investment company, Vestre Partners, and said this trend aligns with studies they've conducted.
"At Vestre Partners, we're closely monitoring these trends to identify promising real estate development opportunities," he said. "Our focus is on cities like Knoxville, which align with the emerging housing and lifestyle preferences of today's homebuyers, especially those seeking a balance of urban amenities and community living."
Knoxville is home to the University of Tennessee. (Eakin Howard/Getty Images)
"Recently, we've observed a significant trend: late-stage millennials are actively seeking housing that aligns with these evolving preferences," he added. "Knoxville, in particular, has emerged as an outstanding city in this regard. It's been a key focus of ours for the past 18 months, standing out as a prime example of the kind of vibrant, opportunity-rich environment we target."
Randolph also explained that the reasons behind urban migration are multifaceted, citing the political climate, lifestyle changes post-COVID and the evolution of work culture, including the rise of remote work as an influential factor impacting people's decisions to relocate.
He explained that the "suffocating density of big cities" and the "soaring cost of living" are huge factors for why millennials, who are in constant "pursuit of a harmonious work-life balance," as well as affordability, a dynamic job market, spacious living and pleasant climate, are moving to mid-size cities.
"The shift towards remote work has significantly impacted where people choose to live," he said. "It's no longer just about job location but also about quality of life, family needs, and personal preferences. This trend is particularly evident among late-stage millennials."