Gray TN Subdivisions Approved as New-Home Prices Rise 3.8%

The Washington County Regional Planning Commission greenlit two new subdivisions in Gray and approved a set of rezonings at its August meeting, reported Aug. 5, 2026 — more lot supply for the fastest-growing corridor between Johnson City and Kingsport.

Where is new housing being approved in Washington County?

Gray. The unincorporated community sits on the Johnson City-Kingsport corridor near Exit 13, and it has absorbed a steady run of subdivision activity in 2026 while the county has also been tightening its zoning text and debating a moratorium on data centers. The county's own agendas this year show the pattern: rezonings from residential and agricultural districts, preliminary subdivision requests, and road-distance variance fights that decide whether a plat moves or stalls.

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

Prices are up, volume is down. New-home prices in the Tri-Cities are 3.8% higher than a year ago, while July new-home sales fell 17.6%, according to Northeast Tennessee Association of REALTORS (NETAR) data. There were 56 new-home sales last month at a median of $365,588; the average price rose faster, to $403,651, up 3.9%.

Are buyers getting discounts on new construction?

Some. 34 of the 56 new homes sold below their final asking price, at an average gap of $5,520 — a year earlier it was 32 of 68 at a $7,717 gap. There were 24 sales after a price reduction, the same count as last year, but the average reduction grew to $19,012 from $15,523. Translation: fewer homes are being cut, but the ones that get cut are being cut harder.

Which Tri-Cities cities led sales?

Blountville led new-home closings with 13, followed by Johnson City with 11, Jonesborough with eight and Kingsport with seven. A year earlier Johnson City dominated with 22. City rankings include only markets with five or more sales.

What this means if you own or buy here

• Gray and Boones Creek owners: two more approved subdivisions means more comparable inventory in 2027, not today. If you plan to sell in that window, going earlier is usually cheaper than competing with a builder.
• New-construction buyers: $207.38 per finished square foot is the number to negotiate against. Ask what incentives are being paid, not just what the price says.
• HOA math: 37 of 56 new homes came with an HOA averaging $337. On a 30-year note that fee is not a rounding error.
• Sellers of older homes: new homes averaged 1,989 finished square feet. Competing means winning on condition, location and price — not square footage.
• Move-up sellers: the Catch 22 is buying before you sell. A guaranteed-sale plan settles the sale first,* which is the only way to shop new construction without a contingency.

What's happening in the Tri-Cities this week

• Walnut Street Music Series — Saturdays, 7-9 p.m. · Johnson City Brewing Co., 714 W. Walnut St., Johnson City (free)
• Speakeasy Cinema: 42nd Street — Aug. 27 · The Jackson Theatre, 121 W. Main St., Jonesborough
• Trip to Appalachia — Aug. 28-29, 7 p.m. · The Jackson Theatre, Jonesborough
• Banjo Bar-Bee & the Buzz — Aug. 28, 9 p.m. · Capone's, 227 E. Main St., Johnson City

Relocating? Gray puts you roughly halfway between Johnson City and Kingsport, which is why it keeps getting platted.

Sources: Johnson City Press, Aug. 5, 2026 (Washington County planning commission actions); Northeast Tennessee Association of REALTORS Market Pulse, Aug. 14, 2026 (July new-home data); Freddie Mac Primary Mortgage Market Survey, Aug. 13, 2026.

*Tracy and seller must agree on price and possession date