Developing STR-Friendly Townhomes in the Smoky Mountains — Lessons Learned So Far

Developing STR-Friendly Townhomes in the Smoky Mountains — Lessons Learned So Far

Developer · Sevierville, TN · Member since 2025 · 3 posts · 0 votes

I've been working on a ground-up townhome development in Sevierville, TN and thought I'd share a few observations for anyone looking at STR-focused projects in high-tourism markets.

One thing that's become very clear is that designing specifically for long-term operational durability matters just as much as initial projections. We've been focusing heavily on simple HOA structure, materials that hold up well in a heavy-turnover environment, and layouts that are investor-friendly without feeling overbuilt.

Another challenge has been balancing local development realities with investor expectations. In markets like the Smokies, a lot of outside buyers assume STR demand alone solves everything, but construction efficiency, maintenance planning, and site flow end up being just as important to long-term performance.

I’m curious how others here approach development decisions when the end buyer is primarily an investor rather than an owner-occupant. What design or planning choices have you seen make the biggest difference after stabilization?

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  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    7mo

    I think you are doing a good job keeping durability in mind. I have sold some new construction that was not purpose built for STR and they are not holding up the best obviously. I am curious with the Smokies market trending down on both visitor, rental, and sales stats have you been able to presell any of the units?

  • Developer · Sevierville, TN · Member since 2025 · 3 posts · 0 votes
    7mo

    Quick follow-up for context — one thing we're actively testing is how HOA structure and shared maintenance planning affect long-term investor retention after year one.

    For those operating STR-heavy developments, have you found that simplifying exterior materials and common-area responsibilities actually improves resale stability, or do buyers still prioritize aesthetics over operational efficiency?

  • Developer · Sevierville, TN · Member since 2025 · 3 posts · 0 votes
    7mo

    Andrew — appreciate the perspective, especially coming from someone seeing how new construction performs after delivery.

    We did traditional presells early on, and those have since closed. At this point we’re at 17 sold out of the current 33 units, with Phase 1 fully closed out and Phase 2A finishing construction now.

    A big part of our design approach has been durability and operational efficiency. In the Smokies there's been a wave of cabin inventory that looks great upfront but can be difficult to maintain under heavy STR turnover — access, exterior upkeep, and long-term serviceability all start to matter more than initial projections.

    That's one reason we leaned toward a townhouse format with simpler HOA maintenance and more predictable operations.

    From what you’re seeing on the resale side, are buyers starting to weigh long-term maintenance and operating costs more heavily than they did a few years ago?

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