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Buying a home in Gatlinburg, TN means sitting at the southern edge of the Great Smoky Mountains National Park and the area functions as both a small mountain town and a tourism engine for Sevier County.
Tracking the Gatlinburg, TN housing market matters because the area’s strong tourism economy, short-term rental demand, and flood/fire exposure create local price swings that differ from nearby metros.
This market report pulls together the latest pricing of homes for sale in Gatlinburg, sales, and value signals so you can see how supply, demand, and finance are interacting right now.
What is the Current State of the Gatlinburg Real Estate Market?
Gatlinburg market signals are mixed in 2025. Redfin’s city-level snapshot shows a sharp jump in median sale price for Gatlinburg in August, with a median sale price of $939,000, a 51.9% increase year over year, but that same report also shows very few closed sales (10 in August), which makes month-to-month medians volatile.
At the same time, Zillow’s ZHVI (a broad measure of typical home values) reports an average Gatlinburg home value of about $408,689 and a one-year decline of 11.4% through August, indicating that the “typical” home has moved differently than a small set of high-dollar sales.
Local and county metrics therefore need to be read together: small sample sizes of high-end cabins can push median sale price up, while broader indexes capture the bulk of residences.
Average Home Listing Price
Median listing points vary by source and by property type. Redfin shows example list prices and a median list figure for active listings that can be well over $600k for many single-family and cabin-style properties as of Aug–Sep 2025.
At the county scale, FRED’s Realtor-derived series reports a Sevier County median listing price near $650,000 in Sep 2025, which helps anchor how list prices in Gatlinburg compare regionally.
Because Gatlinburg’s inventory includes condos and high-end multi-bedroom cabins marketed to short-term rental investors, the average list price depends heavily on which property types are active that month. Expect month-to-month swings when a cluster of turnkey cabins or a few large mountain homes hit market.
Median Sales Price
Redfin’s median sale price for Gatlinburg in August 2025 was $939,000, but that represents a small number of transactions and is therefore sensitive to a handful of high-priced closings.
Zillow’s county-level numbers and broader indices show lower “typical” values, which suggests that while some sales fetch premium prices, the distribution of closed sales includes many lower-priced homes and condos. Use both measures: sale-price medians for recent transaction comparables, and ZHVI or county medians for the broader market context.
Number of Homes Listed
Inventory in Gatlinburg is larger than in many small towns because the market mixes permanent residences with second-home and investor listings. Zillow lists roughly 500+ active Gatlinburg listings at snapshot periods in 2025 (late summer/early fall), reflecting substantial active supply for a town of this size.
Sevier County inventory is much larger and shows thousands of listings countywide; FRED/Realtor series report Sevier County for-sale inventory totals in mid-2025 in the low thousands.
The practical takeaway: buyers who are flexible on product type (condo vs cabin vs single-family) will usually find selection; buyers chasing specific high-amenity cabins should expect competition when turnkey STR properties hit the market.
Number of Homes Sold
Closed-sale counts in Gatlinburg are relatively small month to month. Redfin reported 10 closed sales in August 2025, down sharply from prior-year counts, which makes medians jump when a handful of luxury sales occur. For broader perspective, Sevier County reported 179 closed sales in August, giving a more stable regional frame than the city’s thin monthly totals.
If you are tracking activity YTD, follow county totals for scale and the city/zip totals for close-in comparables; expect homes sold in Gatlinburg to move in small batches and to be seasonal (peak spring–summer tourism months).
Average Days on Market
Time-to-contract measures are longer in Gatlinburg than in many urban markets. Redfin shows median days on market around 120–137 days for Gatlinburg (August 2025), and Zillow reports a days-to-pending figure near 96 days for its index. Different measurement methods and the impact of seasonal inventory explain part of the gap.
Longer DOM here reflects a market with many specialty listings (STR-ready cabins, remote mountain properties) where buyer search is narrower and pricing negotiation windows are wider. Expect more time on market for unique properties and faster movement for competitively priced turnkey cabins.
Price Drops
Price adjustments are a meaningful signal. About 24.9% of Gatlinburg listings had price drops, indicating sellers often lower expectations to get traction. That percentage was lower year over year, but the absolute share of price reductions remains the same for buyers evaluating list price strategy.
Across Sevier County, more sellers are trimming their list price as inventory builds and buyers gain leverage—similar to national trends where supply is catching up to demand. Expect to see price cuts when demand softens seasonally or when financing costs push buyer budgets inward.
How Have Home Values Changed in Gatlinburg?
Home values in Gatlinburg track local tourism and rental demand more than traditional suburban trends. Because buildable land is scarce and buyer traffic follows tourism seasons, the market tends to heat up quickly, then level off once peak demand passes. Prices move with occupancy and buyer interest, not a fixed annual cycle.
One-Year Change
One-year signals differ by measure. Redfin reports a median sale price increase of +51.9% (August 2025) for the area based on recent closings, while Zillow’s ZHVI shows an average home value down 11.4% over the past year.
The contrast comes from small sample sizes and the weighting differences between transaction medians and broader value indices. Use both numbers but weight decision-making toward the series that best matches your target property type.
Three-Year Change
Longer-view indicators show that Gatlinburg and Sevier County experienced sizable pandemic-era appreciation followed by a moderation from 2024. Sevier County’s median sale/listing indicators (e.g., median listing price per square foot and county medians) were elevated through 2022–2024 and remain higher than pre-pandemic levels as of mid-2025.
Five-Year Change
Over five years the region has meaningfully re-priced: the county-level Zillow and FRED series show that typical home values remain above the 2019 baseline even when short-term corrections occur in 2024 and beyond.
That five-year lift is driven by constrained for-sale inventory, high tourism demand for rentals, and new buyer interest in mountain properties during the pandemic era. Reported county medians in mid-2025 remain substantially above mid-2010s levels, per Zillow/FRED county series.
Ten-Year Change
Over a ten-year horizon Gatlinburg’s market reflects long-term tourism-driven demand and episodic events (wildfire and localized flood risk awareness, plus STR rules) rather than steady urban appreciation. Ten-year comparisons show values higher than a decade ago, but expect significant dispersion between low-price condos and high-end turnkey cabins. For long-term perspective, county-level ZHVI and FRED series provide the best multi-year baseline.
How Are Mortgage Rates?
National mortgage rates are an important headwind. Freddie Mac’s Primary Mortgage Market Survey shows the 30-year fixed rate averaged about 6.34% as of Oct 2, 2025; that weekly rate has been moving in the 6%+ range through 2025.
Fannie Mae’s September 2025 forecast expected the 30-year to end 2025 near 6.4% and to fall toward about 5.9% by end-2026, providing a modest easing path but not an immediate return to the ultra-low rates of earlier cycles.
Predictions for the next 3, 6, and 12 months are inherently uncertain. Based on Fannie Mae’s outlook (Sep 2025), expect modest downward pressure on rates toward early-to-mid 2026 if inflation and Fed signals continue to ease; however, short swings tied to the 10-year Treasury can move weekly averages a few tenths. Locally, higher rates tend to reduce buyer traffic and lengthen negotiation windows in Gatlinburg, especially for buyers financing cabins or investment purchases.
Is it a Buyer or Seller’s Market in Gatlinburg?
Short answer: it depends on product and timing. For mainstream single-family homes and many condos the market reads as neutral-to-buyer-leaning in 2025, with longer days on market and a material share of price cuts.
If you are an investor focused on short-term rental revenue, check STR permitting rules and occupancy trends first; if you are a primary-home buyer the broader inventory and longer DOM offer more opportunities to negotiate.
FAQs
What portion of Gatlinburg inventory is used as short-term rentals?
Exact counts vary, but Gatlinburg and Sevier County have a substantial STR presence. The city requires compliance with local STR rules and permits; official Sevier County and Gatlinburg resources outline registration and tax responsibilities for short-term operators as of 2025. Always confirm permit status on the county/city portal before assuming rental legality.
How much rental income can a typical Gatlinburg property generate?
Average asking rents for market-rate long-term rentals differ from STR revenue. Zillow rental data shows average asking rent figures in the low thousands, while STR nightly revenues vary widely by season, property size, and location. Use local occupancy and STR comparables to model revenue rather than generic national averages.
Are insurance and climate risks priced into values?
Yes. Redfin and other climate-risk tools flag flood and wildfire exposure for Gatlinburg; Redfin’s climate overlays note elevated flood and wildfire risk for parts of the area. That risk profile appears in buyer pricing and can affect insurance costs and financing options.
How seasonal is the Gatlinburg market?
Highly seasonal. Peak listing and buyer activity track tourism cycles (spring–summer and holiday windows). That seasonality affects showing traffic, pricing cadence, and the speed of offers. Plan timing around peak open-house windows if you need a faster sale.
Is Gatlinburg a good market for investors right now?
Investor suitability depends on strategy. The area’s tourism demand supports STR cash flows in many properties, but rising rates, higher operating costs, and local permit rules increase operating risk. Evaluate occupancy history, local permit compliance, insurance costs, and realistic expense assumptions before underwriting.
What should a local buyer watch for in the next 6–12 months?
Watch mortgage rate movement, county inventory counts, and the share of listings with price reductions. If rates fall toward the 5.5–6.0% range and inventory tightens, competition can heat up quickly; if rates remain elevated, expect steadier supply and more negotiating leverage for buyers.
