KNOXVILLE, Tenn. (WATE) — A new apartment complex is opening in Knoxville promising affordable housing for the city.

The Ammons at Asheville Highway was built by Southeast Capital in partnership with developer Carl Lansden. The city of Knoxville provided $2 million dollars for construction to developers from its Affordable Rental Development Fund.

The 102,267-square-foot apartment complex was constructed on the site of a dilapidated hotel located at 4617 Asheville Highway. The Ammons features 28 two-bedroom units and 52 three-bedroom units. According to the complex’s website, rent for a two-bedroom will be $905 and rent for a three-bedroom will be $1181.

“There’s ADA-accessible apartments. There’s two bedrooms, three bedrooms. And they’re all affordable. They all are next to a bus line and walking distance to grocery stores and libraries and parks. It’s a really beautiful neighborhood,” said Knoxville Mayor Indya Kincannon.  

Southeast Capital is a Knoxville-based developer that specializes in affordable housing according to the city. The Ammons is the second development they have partnered with the city to complete. Two more developments, Inskip Flats and Central Terrace, are currently being built.

“Affordability has to do with not just the price of the rent, but also can you pay the utility bill. Is it close to jobs? Can you live here if you’re having mobility issues? And the answer at the Ammons is yes,” said Kincannon.  

New housing and affordable housing are a need in Knoxville. According to Knoxville Area Association of Realtors’s 2023 Housing Report, rent in the city has increased by 47% since 2019. This report also shared that the rental occupancy rate was at a near-record high of 98% as of the second quarter of 2022. This is expected to decline to around 96% across 2023.

“Housing is one of the biggest needs we have in our community,” said Kincannon. “Rents have gone up quite a bit and right now, we’re at about 97% full. When you call up existing properties, they’re already full. It’s a big issue and we need to build and create more housing at all levels, and this is a really important step in the right direction.” 

For those interested in living at the Ammons, click here.