By A.J. Kaufman, Managing Editor
Kingsport native James Phillips has been a local builder and developer in the area for over 17 years. During the past six years, he also has served as an Alderman with the City of Kingsport and president of the Kingsport Home Builders Association. With all the strategies, uncertainty and occasional chaos surrounding regional real estate, the Business Journal was eager to sit down and talk with Phillips as prime homebuying season proceeds.
Business Journal: Tell me about your professional background in terms of real estate and developing?
James Phillips: I graduated from college with an advertising degree, so building was never truly in the cards. My dad developed some apartments and property in Johnson City and when I felt like I wanted to move back to Kingsport I decided to try a career change. My first project was remodeling 6 townhomes in Church Hill. I think I’ve hated remodeling ever since, but it’s a necessary evil. Since then, my wife and I have built most of our buildings in downtown Kingsport. We keep everything we build as rentals and then manage those properties.
BJ: Broad question, but how is the regional market right now, and how do you see it proceeding this summer and the rest of 2025?
JP: I think right now the building and selling market are slower than they’ve been in a few years. A big part of that was the inflation explosion followed by the uncertainty about what tariffs are going to do to the price of construction materials. You have seen a shift in local builders focusing on custom homes and not taking as many chances with spec homes. One thing that is working in our market’s favor is there is still such a high demand for people moving here but a lack of housing inventory. That will continue to carry us through for a while but what happens with the prices of materials will be the determining factor in how aggressive local builders are. National builders in this area seem to continue to be full steam ahead.
BJ: As a developer, any specific recommendations for first-time homebuyers right now or those new to the region?
JP: Some of the power is shifting back to the buyer, so I would encourage a first-time buyer to not feel rushed into buying something they don’t love. Make sure it’s what you want. I can’t tell you how many stories I have heard over the last year of people trying to sell homes they bought in a panic between 2020-2023 because they couldn’t find anything. Then they were unhappy with the house and now are trying to sell a home they already paid top dollar for and with the market cooling they are stuck.
BJ: What about sellers? What’s some advice for them?
JP: It is not the same market as it was coming out of the pandemic. Your house probably isn’t going to sell the same day you put it on the market. I would encourage any seller to have a plan of exit if their house does sell. People don’t realize the apartment market has been as tight, if not tighter, than the housing market so if you get an offer make sure you have a place to go so you don’t hold up the sale. At the same time, don’t be afraid to move into a townhome or apartment while you are looking for your next home.
BJ: Are there some things you would like to promote on the Kingsport side?
JP: Kingsport is very fortunate to have some great developments coming online. Most people have heard of the Brickyard Development in downtown that is currently getting lots ready, but there are also some new townhome developments going in downtown and out on the river. With the city on the cusp of building two new elementary schools — Lynn Garden and the old North High School — I have been advising people to look in those areas if they are looking to invest in building or buying a home because a new school does great things for a neighborhood.
BJ: Anything else you wish to add?
JP: I believe the tariffs are going to have the building industry in a freeze. There is so much uncertainty with what will happen with lumber and steel prices that people like myself are questioning if we need to start the next project yet or wait and see what happens.
