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This report provides a comprehensive overview of the Knoxville, Tennessee market. It covers local audience demographics and socioeconomic data, psychographic and cultural insights, consumer behavior and shopping patterns, economic indicators and market conditions, neighborhood-level data, the media landscape, and the overall business environment.
Local Audience Demographics and Socioeconomic Data
Knoxville is a mid-sized city with a population of around 190,000 in the city proper and approximately 950,000 in the surrounding metropolitan area. The metro population has been growing steadily at about 1.0% annually, reflecting the region’s increasing appeal. The age distribution skews younger in the city (with a median age of approximately 33.7 years), influenced in part by the presence of the University of Tennessee, compared to a median age of around 40.7 years in the broader metro. Approximately 22% of the metro population is under 18, and about 18% is 65 or older, indicating a balanced mix of youth and retirees.
The racial and ethnic composition is predominantly white but is gradually diversifying. In the metropolitan area, roughly 87.7% of residents identify as white, 5.7% as Black or African American, 1.6% as Asian, and 4.2% as Hispanic or Latino. Within the city limits, diversity is a bit higher, with approximately 75% white, 17% Black, and around 5% Hispanic. Educational attainment is in line with national averages; about 32% of adults hold a bachelor’s degree or higher.
In terms of income and poverty, Knoxville shows some socioeconomic contrasts. The median household income in the city is around $50,000 per year, which is lower than the U.S. median. In the broader metro, the median income is higher at about $61,000, reflecting more affluent suburban areas. The per capita income in the city is roughly $32,000. Approximately 23.6% of city residents live below the poverty line, a rate significantly above the metro and state averages. This elevated poverty rate is partly influenced by a large student population and pockets of low-income neighborhoods. However, the cost of living in Knoxville is relatively low—around 14% below the national average—meaning that earnings go further. For example, a $60,000 salary in Knoxville has the purchasing power of over $70,000 in an average U.S. city.
Knoxville’s employment base is diverse. The region’s workforce, numbering roughly 432,000, has a labor force participation rate around 60.5%. The largest employment sectors include health care and social assistance, retail trade, and manufacturing. Major occupational categories range from office and administrative support to sales, food service, and education. The presence of the University of Tennessee and large hospital systems makes education and healthcare major job creators, while the region’s industrial heritage ensures that manufacturing and distribution remain vital. Overall, Knoxville’s demographics reveal a moderately young, educated population with mixed economic characteristics—a mix that offers both opportunities and challenges for businesses entering the market.
Psychographic and Cultural Insights
Knoxville’s culture blends traditional Southern values with the energy of a college town. Deep-seated community values of faith, family, and patriotism provide a culturally conservative backdrop. There is a strong emphasis on community and hospitality; residents are known for being friendly, welcoming, and proud of their Southern charm. Family-oriented lifestyles are common, and Knoxville consistently ranks as a family-friendly city, with numerous church groups, youth sports programs, and community events. The region’s religious heritage is evident in the large number of churches, and local life often revolves around family gatherings and volunteerism.
At the same time, Knoxville has a vibrant local culture shaped by its university and creative scenes. As a college town, the city exhibits youthful and progressive undertones. During fall Saturdays, the entire city dons orange to support the Tennessee Volunteers, uniting the community through college football fandom. Traditions such as tailgating on boats along the Tennessee River—known as the “Vol Navy”—exemplify the unique communal spirit on game days. The University of Tennessee’s presence also infuses the city with arts, innovation, and a steady stream of cultural events.
Lifestyle interests in Knoxville often center on the outdoors, sports, and music. Nestled by the Tennessee River and near the Great Smoky Mountains, residents are avid about outdoor recreation—hiking, fishing, boating, and biking are popular weekend activities. The city’s Urban Wilderness, a large network of trails and parks in South Knoxville, has fostered a local culture of mountain biking and trail running, blending recreation with conservation. Many locals take pride in their active, outdoorsy lifestyle, taking full advantage of the nearby natural resources.
Knoxville consumers are known for their strong sense of community loyalty and local pride. Residents value supporting local businesses, and campaigns to “buy local” are common. While many consumers enjoy national brands and chains, there is notable pride in Knoxville’s own institutions, whether it is supporting local eateries or displaying loyalty to University of Tennessee athletics. Overall, Knoxville’s consumers tend to be value-conscious and community-minded. They appreciate good deals, respond well to marketing that taps into regional pride and family values, and are particularly receptive to messages that emphasize local traditions and the natural beauty of East Tennessee.
Consumer Behavior and Shopping Patterns
Consumers in Knoxville exhibit a mix of traditional in-store shopping habits and a growing influence of e-commerce, reflecting broader national trends. Brick-and-mortar retail remains important—local malls and shopping centers are busy on weekends, and many residents value the social aspects of in-person shopping. Retail hubs such as West Town Mall and the Turkey Creek shopping district draw consistent foot traffic from both city and suburban shoppers. Many local retailers enjoy strong in-store sales, especially during the holiday season, as the community trusts local stores for specialty goods and services.
At the same time, online shopping has grown rapidly. E-commerce sales in the area have seen significant annual growth, particularly during the holiday season. Shoppers appreciate the convenience and wider selection offered online, prompting many local retailers to adopt strategies such as online ordering and curbside pickup. Major national chains present in Knoxville actively promote buy-online-pickup-in-store and delivery services, and consumers have embraced these methods. While traditional brick-and-mortar stores remain important, experts predict that many retailers will adopt smaller physical footprints in favor of hybrid models that balance in-store and online channels.
Purchasing habits in Knoxville generally follow seasonal patterns. The holiday season (November-December) is the peak period for retail sales, with both online promotions and in-person events boosting revenue. The back-to-school season and the influx of University of Tennessee students each August create additional spikes in demand for furnishings, electronics, apparel, and food services. Furthermore, football season in the fall drives up sales of groceries, beverages, and team-related merchandise, as local retailers capitalize on tailgating and game-day traditions.
Knoxville shoppers tend to balance price sensitivity with strong brand loyalty. Many households operate on modest budgets, making competitive pricing and discount offers particularly effective. National discount chains, coupon mailers, and loyalty programs find receptive audiences here. When consumers find a brand or local business they trust, they often remain loyal and recommend it to others. Local businesses, including regional grocery chains and auto dealerships, enjoy repeat patronage from their communities. The strong local identity also supports a healthy loyalty toward homegrown brands, as customers frequently opt for products and services that support the local economy.
In terms of shopping methods, traditional in-store purchases still dominate among older and rural residents, who value the tactile experience and immediate fulfillment. Younger consumers, especially those affiliated with the university, tend to lean more on online purchasing via smartphones and apps. Many consumers adopt an omnichannel approach by researching products online and then making in-store purchases, or vice versa. Retailers in Knoxville actively leverage both physical and digital channels to reach their target audiences effectively.
Overall, consumer behavior in Knoxville mirrors broader national trends but retains a local twist. The emphasis on convenience and value drives the growth of e-commerce and big-box retail, while a strong sense of community supports local businesses and event-driven spending. For businesses entering this market, offering multi-channel accessibility, competitive pricing, and campaigns that resonate with Knoxville’s community values will be key to success.
Economic Indicators and Market Conditions
Knoxville’s economy is robust and growing, supported by a diverse mix of industries and favorable market conditions. The region’s gross domestic product (GDP) was about $50.5 billion in 2021, accounting for roughly 13% of Tennessee’s total output. That year, the metro’s GDP surged by 12.5% as it rebounded strongly from a brief dip during the pandemic. This growth, which outpaced the national average, reflects a broad recovery in local business activity. Key contributors to GDP include manufacturing, real estate, healthcare, and professional and technical services. Manufacturing, in particular, plays a vital role in the region’s output, while robust real estate activity underscores rising property values and construction.
Employment conditions in Knoxville are very favorable. The metro area has maintained low unemployment rates, recently hovering around 3% or even lower. For example, the unemployment rate in the Knoxville metropolitan area was approximately 2.6% in May 2024, with Knox County reporting around 2.4%. This low unemployment rate indicates a tight labor market where demand for workers is high—a positive indicator for the local economy, though it also suggests potential challenges for businesses in recruiting talent. Job growth has been steady, with the total employment in the Knoxville area growing by about 3% from 2021 to 2022, particularly in healthcare, logistics, and professional services.
Several economic indicators further underline Knoxville’s positive market conditions. Workforce participation is solid at around 61% among individuals aged 16 and over. Income growth has been modest but steady, with the city’s median household income increasing from roughly $44,300 in 2021 to $48,300 in 2022. The cost of living in Knoxville is an advantage, with a cost index significantly lower than the national average. This affordability not only benefits residents but also contributes to steady consumer spending, as evidenced by rising sales tax collections in Knox County despite broader inflation concerns. Inflation has remained moderate, typically in the 3–4% range, with housing and energy costs being notable factors.
The real estate market in Knoxville has shown remarkable strength in recent years. Home values have climbed significantly due to high demand and population growth, with the median home sale price in the area now in the mid-$300,000 range. This represents a double-digit percentage increase from previous years. Additionally, Knoxville experienced one of the fastest rent increases in the nation from 2019 to 2024, with average rent for a one-bedroom apartment rising by 56–59% over five years. While this increase reflects strong demand, it also points to a tight housing supply. Commercial real estate is equally robust; industrial vacancy rates are low due to expanding logistics and manufacturing, and office occupancy is stable with growing demand in suburban areas. Major investment projects, such as a new downtown stadium with a multi-million-dollar investment, further stimulate mixed-use developments and economic growth.
Key industries in Knoxville provide both stability and opportunity. Long-standing economic pillars include advanced manufacturing, energy and utilities, education and healthcare, retail trade, and tourism. The region has a higher concentration of manufacturing jobs than the national average, with major auto parts manufacturers and housing companies driving employment. The energy sector, anchored by the Tennessee Valley Authority and regional research facilities, contributes significantly to local job creation. The University of Tennessee and its associated research initiatives bolster the educational and healthcare sectors, while tourism remains strong as Knoxville serves as a gateway to the Great Smoky Mountains.
Business formation in Knoxville has been steady, with hundreds of new business licenses issued each quarter. This entrepreneurial activity is supported by incubators, accelerators, and pro-business policies. The local tax structure, including no state income tax and low corporate taxes, enhances the business-friendly environment. Knoxville’s strategic location at the intersection of major interstate highways further supports sectors like logistics and distribution. Overall, the economic indicators and market conditions signal a diverse, growing economy that offers a favorable environment for businesses and investors alike.
Neighborhood-Level Data
Knoxville is a city of distinct neighborhoods, each with its own demographic character and economic activity. Understanding these local geographies is essential for targeted marketing, as differences in income, population, and development vary across the city.
Downtown Knoxville
The downtown area and adjacent Old City form the urban core. Characterized by a relatively young population and recent residential growth, downtown is the hub of activity with offices, shops, restaurants, and cultural venues. It also hosts major institutions such as the University of Tennessee’s main campus and the Knoxville Convention Center. The area has a high concentration of young professionals and renters, driven by the presence of educational and cultural institutions. Economic activity is fueled by education, nightlife, dining, and tourism. The housing market here is evolving, with a mix of historic buildings, loft conversions, and new mixed-use developments. For marketers, the downtown audience is generally younger, educated, and tech-savvy, responding well to social-media advertising and experiential marketing initiatives.
West Knoxville
Areas such as Bearden, Sequoyah Hills, West Hills, and Turkey Creek (Farragut) form the suburban and more affluent portion of the city. These neighborhoods feature higher-income households and a significant share of homeowners. For example, Sequoyah Hills is known for its upscale homes along the Tennessee River, while West Hills and Bearden offer family-friendly environments with well-regarded schools. The median household incomes in these areas often exceed those in other parts of Knoxville, and poverty rates are notably lower. West Knoxville also serves as a retail powerhouse, hosting major shopping centers like West Town Mall and Turkey Creek. This part of town attracts consumers with higher discretionary incomes and a preference for family-oriented and upscale products. Traditional advertising, including billboards and direct mail, tends to be effective here, along with targeted digital ads aimed at homeowners and families.
North Knoxville
North Knoxville, which includes neighborhoods such as Fountain City, Inskip, and areas along Broadway/Central, is a mix of historic communities and emerging hotspots. Fountain City is an older suburb with modest incomes and a high rate of homeownership, while areas closer to downtown have recently attracted young professionals and creative entrepreneurs. This part of the city features a blend of established local businesses and independent ventures thriving in revitalized commercial corridors. North Knoxville offers more affordable real estate compared to the west, and its evolving character attracts both long-time residents and new arrivals. Marketing in North Knoxville may require a dual approach: traditional media for established, older residents and social media or grassroots campaigns for younger newcomers.
South Knoxville
Located across the Tennessee River from downtown, South Knoxville has traditionally had a more industrial and rural feel, but it is undergoing significant change. The presence of the Urban Wilderness—a large network of parks and trails—has spurred the growth of new businesses, such as cafes, outdoor gear stores, and breweries that cater to recreation enthusiasts. While parts of South Knoxville have historically experienced higher poverty rates and lower economic activity, ongoing community investments and new residential projects signal a revitalization. Emerging neighborhoods near trailheads and the planned downtown stadium area are attracting young families and outdoor enthusiasts. For marketers, South Knoxville represents an emerging market where advertising through community channels and local sponsorships can build trust and engagement.
East Knoxville
Neighborhoods in East Knoxville, including Burlington, Five Points, and Parkridge, tend to have a larger African American population and have historically faced economic underinvestment. The median household income in this area is lower than the city median, and poverty rates are higher. Despite these challenges, there are active revitalization efforts, with community organizations and city initiatives investing in affordable housing and local business development. East Knoxville is also a cultural center, rich in Black heritage and local traditions, with landmarks and community centers that anchor neighborhood identity. Businesses looking to serve East Knoxville should consider approaches that emphasize community commitment, trust-building, and inclusive messaging.
In summary, Knoxville’s neighborhoods vary widely—from the urban vibrancy of downtown and the affluence of West Knoxville to the emerging opportunities in North and South Knoxville, and the under-served yet culturally rich East Knoxville. Real estate trends and consumer behaviors differ markedly among these areas, requiring tailored marketing strategies. Whether a business is targeting young professionals in downtown or families in the suburbs, understanding the distinct characteristics of each neighborhood is key to effective local marketing.
Media Landscape
Knoxville’s media landscape comprises a mix of traditional outlets and digital platforms, offering businesses multiple channels to reach local audiences. Local news is dominated by a major daily newspaper, which provides comprehensive coverage of local events, sports, and community news. On the broadcast side, several television stations serve the area, with leading network affiliates providing extensive local coverage and advertising opportunities. These television stations also have strong digital presences that extend their reach.
Radio remains an important medium in Knoxville. The market is known for its prominence in country music, with leading stations enjoying high listener ratings among adults. Other popular radio formats include classic rock, adult contemporary, and Top 40 pop, along with talk and news stations. Public radio and community stations also attract engaged, niche audiences. For marketers, radio offers a cost-effective way to target specific demographics during high-traffic times such as morning and evening commutes.
In addition to traditional media, print and local publications—including lifestyle magazines and weekly newspapers—serve specific market segments. These publications offer targeted advertising opportunities for businesses looking to reach niche audiences.
Digital media and social platforms are increasingly influential. Facebook is widely used across age groups for community news and local discussions, while Instagram has gained popularity among younger consumers and small businesses. Twitter and neighborhood-specific platforms like Nextdoor are also active in the area. For a marketing campaign, digital advertising on social media provides the ability to geo-target audiences and tailor messages to the Knoxville market. Traditional channels such as billboards along major highways continue to be effective in building brand awareness among commuters.
Overall, Knoxville’s media environment is diverse, spanning TV, radio, print, and online channels. An integrated marketing approach that leverages multiple media types will effectively reach the broad spectrum of Knoxville consumers—from those who prefer traditional media to digitally connected younger audiences.
Business Landscape
Knoxville’s business environment is characterized by a diverse mix of major corporations, significant government and research institutions, a robust small-business community, and emerging entrepreneurial ventures. This diversity provides a stable economic base and a wide range of marketing opportunities.
Major employers anchor the local economy. The University of Tennessee is the largest employer, providing thousands of jobs and contributing significantly to the local economy. In addition, federal research institutions such as Oak Ridge National Laboratory and major entities like the Tennessee Valley Authority support high-skilled employment. In the private sector, companies like Pilot Flying J and Clayton Homes contribute to the region’s manufacturing and service industries. Large healthcare systems and public school districts also play major roles, while other significant employers include telecommunications, auto parts manufacturing, and tourism operators.
Small business activity in Knoxville is thriving. An active entrepreneurial culture is supported by local resources such as the Knoxville Entrepreneur Center, incubators, and networking programs. Hundreds of new business licenses are issued regularly, reflecting robust startup activity in diverse sectors—from food and hospitality to technology and professional services. The local government and Chamber of Commerce actively promote small business growth through initiatives that emphasize “made in Knoxville” products and services.
Emerging business opportunities are abundant in sectors such as technology and innovation. Knoxville’s research institutions have helped spur startups in energy technology, advanced materials, and clean energy. Logistics and distribution are also growing, thanks to Knoxville’s strategic location at major interstate intersections and the expansion of e-commerce distribution centers. Additionally, tourism and hospitality continue to offer significant potential, as the city invests in attractions and infrastructure to support the visitor economy. The healthcare and life sciences sectors also show promise, given the presence of major hospital networks and research facilities.
Knoxville’s business climate is further enhanced by Tennessee’s business-friendly tax structure, which includes no state income tax and low corporate taxes. The city’s quality of life, collaborative business culture, and ongoing investments in infrastructure—such as freeway improvements and airport upgrades—make it an attractive destination for businesses and investors. Networking organizations and business associations further support collaboration among local enterprises, making relationship-building a key element of Knoxville’s business landscape.
In summary, Knoxville offers a dynamic business environment with a solid mix of traditional industries and innovative, emerging sectors. For businesses looking to enter or expand in the market, the combination of major employers, supportive small-business infrastructure, and a pro-growth economic climate makes Knoxville a compelling market.
References
- U.S. Census Bureau – QuickFacts: Knoxville city, TN
- Census Reporter – Knoxville, TN Profile
- Data USA – Knoxville, TN
- Knoxville Chamber Economic Reports
- WBIR News – Local Retail and E-Commerce Insights
- Tennessee National Blog – Economic and Neighborhood Guides
- KnoxvilleTennessee.com – Major Employers in Knoxville
- RadioInsight – Knoxville Radio Ratings
- Muck Rack – Top Knoxville TV Outlets
- Knoxville Chamber – Economic Conditions Outlook, June 2024
- Local news and development data (various sources)