A new mixed-income housing development just east of downtown Knoxville will expand by more than 150 apartments as leasing for available units from an earlier phase is nearing completion.
First Creek at Austin , built on the 23-acre site of the former Austin Homes, marks a major effort to boost affordable housing and community connectivity in East Knoxville.
Positioned at the intersection of Summit Hill Drive and Martin Luther King Jr. Avenue, First Creek at Austin is less than a mile from downtown Knoxville, the Old City district and the site of the new baseball stadium scheduled to open in July 2025. It's also within easy walking distance of two KCS schools: Green Magnet Academy elementary and Vine Middle Magnet schools.
Officials for the city and Knoxville Community Development Corporation, commonly called KCDC, marked the start of the third and final phase of construction with a groundbreaking at the site Aug. 1.
How First Creek at Austin has added apartments
First Creek at Austin began to take shape in 2019 as KCDC collaborated with community members on a master plan for the city's first mixed-income housing development, marking a milestone in Knoxville's ongoing efforts to expand affordable housing options.
The first phase, completed in November 2021, comprises 105 new housing units. The second phase, which consists of 180 units, is on track for completion by the end of summer 2024. The final phase will add approximately 160 units, including 50 supportive housing units for low-income seniors age 62 and older, bringing the total to 445 affordable housing units by late 2025.
Phase one units are fully leased, and of the 180 units in the second phase, 99 are leased and leasing for the remaining 81 is under way.
Barring weather and construction delays, the third phase could be ready to begin leasing in winter 2025-26, Ben Bentley, executive director and CEO of Knoxville’s Community Development Corporation, told Knox News.
What is mixed-income housing?
In a mixed-income development, rent prices are determined by eligibility for an income-based assistance program. A select number of units are available for Section 8 voucher holders.
Without income assistance, the rent listed on the First Creek at Austin website is:
- 1 bedroom, $1,300
- 2 bedrooms, $1,560
- Units with 3 or more bedrooms are income-based units and require more information to qualify.
Why First Creek at Austin was developed
The First Creek at Austin project was developed to address Knoxville's critical need for affordable housing and community revitalization after the demolition of the former Austin Homes housing projects in 2020.
The University of Tennessee Boyd Center for Business and Economic Research and the Knoxville Regional Transportation Planning Organization both project that Knox County's population will increase by around 80,000 people between 2024 and 2045.
Knoxville also is facing a shortage of 6,000 to 8,000 housing units that would need to be built by 2029 to address the increasing demand and compensate for years of insufficient construction, according to the East Tennessee Realtors 2024 Knoxville Housing Market Forecast.
Rent prices are expected to increase by 3.1% in 2024 to an average of $1,487 a month across all size units, according to the report. Rent increased by 17% in 2022 and 7.7% in 2023.
The First Creek at Austin project plays a crucial role in Knoxville's plan to revitalize the area around downtown. By turning the site into a mixed-use community with more housing, better infrastructure and improved connections to the city, the project aims to draw new residents and businesses to boost the local economy.
Angela Dennis is the Knox News race, justice and equity reporter. Email angela.dennis@knoxnews.com.
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This article originally appeared on Knoxville News Sentinel: Amid Knoxville housing shortage, a new affordable development is expanding near downtown
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