Sullivan County OKs 3 Rezonings; Tri-Cities Home Prices

The Sullivan County Commission approved three rezoning requests and rejected a fourth at its August rezoning hearing, according to the Kingsport Times News on Aug. 17, 2026 — the latest round of land-use decisions in a county that spent the first half of the year rewriting how it handles high-intensity development.

What is Sullivan County actually deciding right now?

Two tracks are running at once. The first is ordinary rezoning traffic: individual property owners moving parcels between agricultural, residential and business districts, heard at the commission's monthly rezoning hearing. The second is structural. In June the commission created PMD-3, a Planned Manufacturing District written for data centers, crypto mining and battery energy storage systems. Planning and codes director Luke Meade described the intent as placing those uses in the middle of existing industrial parks, ringed by heavy then light manufacturing, then commercial, then residential — and away from residential and agricultural land. The county has been operating under an extended data center moratorium while the study was completed, and the text amendment moved through the county, Kingsport and Bristol planning commissions before reaching the county commission.

Why should a Tri-Cities homeowner care about a zoning district?

Because zoning is the only thing standing between your back fence and the next high-intensity use. PMD-3 requires city water rather than wells and larger buffers from neighbors, and any property would have to be rezoned before a data center could move in. In practical terms, that converts a surprise into a public hearing with your name on the notice list.

What are new homes selling for in the Tri-Cities?

New-construction prices are up and volume is down. There were 56 new-home sales in July with a median of $365,588, up 3.8% year over year, while sales fell 17.6%, per the Northeast Tennessee Association of REALTORS. The average price rose 3.9% to $403,651, and cost per square foot edged up to $207.38.

What this means if you own or buy here

• Rural Sullivan County owners: check the rezoning notice list monthly. Three approvals and one rejection in a single night is how a corridor changes character.
• Buyers of new construction: 34 of 56 new homes closed below the final asking price, with an average gap of $5,520. Builder pricing is negotiable again.
• Sellers of existing homes: new-home sales down 17.6% means less competition from builders this quarter than last year.
• Move-up sellers: the average price cut on new construction was $19,012. Pricing right the first time is worth more than a strong opening number.

What's happening in the Tri-Cities this week

• Music on the Square — Aug. 21, 7-9 p.m. · Courthouse Square, Jonesborough
• Lawnstock — Aug. 22, 1-8 p.m. · Founders Park Great Lawn, Johnson City
• Walnut Street Music Series — Aug. 22, 7-9 p.m. · Johnson City Brewing Company, Johnson City

Moving to the Tri-Cities? Founders Park on a Saturday is the short version of downtown Johnson City.

Sources: Kingsport Times News, Aug. 17, 2026 (Sullivan commission rezonings); WJHL, June 15, 2026 and WCYB, June 16, 2026 (PMD-3 data center district); Northeast Tennessee Association of REALTORS Market Pulse, Aug. 14, 2026; Freddie Mac Primary Mortgage Market Survey, Aug. 13, 2026; downtownjctn.com; jonesborough.com.

*Tracy and seller must agree on price and possession date