Tri-Cities luxury home market up 17%, expands beyond metros

Luxury home sales in the $500K to $1 million price range jumped from 76 in July 2024 to 89 in July 2025. That’s a 17% increase year-over-year. The rise wasn’t confined to one hotspot. Multiple cities shared in the growth, reflecting steady demand for high-end homes across the Tri-Cities and surrounding communities.

And the luxury market wasn’t just bigger. It was broader, with more communities recording sales and several posting substantial gains. Buyers are increasingly looking beyond the metro centers, while established leaders like Johnson City and Kingsport continue to anchor the region’s high-end housing market.

 City Highlights

• Jonesborough was the biggest gainer, nearly doubling its luxury sales: 16 homes in 2025 vs. 7 in 2024 (+9). Historic charm and new builds combined to make it the standout.

• Johnson City remained a leader with 12 sales in 2025 vs. 16 in 2024 (down 4). While numbers dipped slightly, it still held one of the highest totals, driven by proximity to schools, healthcare, and thriving neighborhoods.

• Kingsport saw a pullback with 8 sales in 2025 vs. 13 in 2024 (-5). Even so, it continues to be a major player in the luxury segment.

• The twin cities surged ahead, recording 7 sales in 2025 vs. just 2 last year (+5). Growth in both the Bristol, TN, and VA sides reflects renewed buyer interest.

• Piney Flats was consistent in its upper-tier market with 5 sales in both years.

• Abingdon and Blountville each climbed from 2 to 5 sales in 2025 (+3 each),

marking them as emerging luxury destinations.

• Smaller communities also made gains:
• Church Hill: 4 vs. 1 (+3)
• Bluff City: 3 vs. 1 (+2)
• Mountain City: 2 vs. 0 (+2)
• There were several one-sale entries in 2025 (Telford, Roan Mountain, Mosheim, Mendota, Bulls Gap, Afton, Hampton, Fall Branch, Damascus). This marks new luxury activity where none existed last year.

July’s active inventory in the $500K and up price range was 614, up 49.4% from last year. Last month’s new listing totaled 173 up 20.1% year-over-year.

The local luxury market contrasts the U.S. trend, where the luxury market is in a transition phase and contracting from where it was last year. However, the outlook is for renewed moderate expansion toward 2030, driven by a growing affluent population and emerging markets.

This analysis is based solely on local data from the Northeast Tennessee Association of Realtors. It’s a product of human analysis aided by AI.