Knoxville offers some of the best new construction value in Tennessee, with communities starting well under $400,000. Here's where to find them and what to expect from East Tennessee's most active new home market.
Knoxville: East Tennessee's New Home Sweet Spot
Knoxville occupies a unique position in Tennessee's new home landscape. It's a genuine mid-size city — home to the University of Tennessee, a growing healthcare and technology sector, and a vibrant downtown — yet new home prices remain meaningfully more affordable than Nashville. The median new home price in Knox County sits around $360,000, and buyers can still find quality new construction starting under $300,000 in the surrounding counties.
The Knoxville metro encompasses Knox County and extends into Anderson, Blount, Loudon, and Union counties, each offering its own character and price point. Whether you're drawn to the established neighborhoods of West Knoxville, the mountain views of Seymour, or the convenience of the Karns and Powell corridors, there's an active new home community to match.
Active New Home Communities in the Knoxville Area
Penwell — D.R. Horton (North Knoxville, 37938)
D.R. Horton's Penwell community in North Knoxville is one of the most active new home developments in Knox County. Homes here are priced from approximately $340,000 to $365,000 and offer 3–4 bedrooms with 2,100+ square feet — a strong value proposition by any measure. D.R. Horton's national scale means move-in-ready homes are frequently available, which is a significant advantage for buyers who can't wait 6–12 months for a build.
Prospect Hill — D.R. Horton (North Knoxville, 37918)
Located in the 37918 zip code near Powell, Prospect Hill offers D.R. Horton's popular Cabral and Elston floor plans, priced from the mid-$340s to upper $360s. The community's location in the Powell corridor puts residents close to Powell High School and the growing commercial corridor along Emory Road.
Belltown — Smithbilt Homes (Karns)
Smithbilt Homes is East Tennessee's largest locally-based residential builder, and Belltown in Karns is one of their flagship communities. Starting at $379,900, Belltown features Smithbilt's Craftsman and Carriage series floor plans — designs that emphasize curb appeal and livability. Smithbilt's reputation for quality construction at an accessible price point has made them a consistent choice for Knoxville-area buyers.
Honey Oaks — Smithbilt Homes (Gibbs)
Honey Oaks, located in the Gibbs community northeast of Knoxville, starts around $349,000 and features Smithbilt's Inspire and Founders series. The Gibbs area offers a more rural feel while remaining within reasonable distance of Knoxville's employment centers. Smithbilt's Imperial series — their most affordable line — starts in the mid-$200s and is available in select communities.
The Farm at Riverbend — Smithbilt Homes (Seymour)
For buyers drawn to the foothills of the Smokies, The Farm at Riverbend in Seymour (Blount County) offers Craftsman-series homes starting at $379,900 with mountain views and a more rural setting. Seymour is approximately 20 minutes from downtown Knoxville and close to the outdoor recreation opportunities of the Great Smoky Mountains.
Belhaven — D.R. Horton (East Knoxville, 37924)
D.R. Horton's Belhaven community in the 37924 zip code offers 4-bedroom homes with 2,000 square feet starting around $354,000. East Knoxville has seen significant investment in recent years, and this area offers convenient access to I-40 and downtown Knoxville.
The Knoxville Market at a Glance
Knox County currently has approximately 57 new homes available under $400,000, with a starting price of $299,990 and a median of $362,275. The most active builder in the under-$400K segment is D.R. Horton, which operates multiple communities across the county. Smithbilt Homes is the dominant local builder, with communities spanning Knox, Blount, and surrounding counties.
Frequently Asked Questions
What is the starting price for new homes in Knoxville, TN?
New homes in the Knoxville metro start around $299,990 in Knox County, with some communities in surrounding counties offering homes in the mid-$200s. See our [Knoxville builders page](/builders/knoxville) for current community listings.
Which builders are most active in Knoxville?
D.R. Horton and Smithbilt Homes are the most active builders in the under-$400K segment. Goodall Homes, Lennar, and Clayton Properties Group also build in the Knoxville area at various price points.
What are the best areas for affordable new construction near Knoxville?
North Knoxville (Powell, Karns), East Knoxville, and Blount County (Maryville, Seymour) offer the strongest concentration of new homes under $400,000. The 37938 and 37924 zip codes are particularly active.
How is the job market in Knoxville?
Knoxville's economy is anchored by the University of Tennessee, the University of Tennessee Medical Center, Oak Ridge National Laboratory, and a growing manufacturing and logistics sector. The metro area has maintained low unemployment and steady job growth.
Are there good schools near Knoxville new home communities?
Knox County Schools is the primary district, with significant variation in school quality across the county. Oak Ridge City Schools (in neighboring Anderson County) is one of the highest-performing districts in Tennessee. Research specific school assignments before choosing a community.