Memphis Real Estate Market: Forecasts & Trends

6 Replies | Memphis, Tennessee

Rеgаrdеd as the ѕесоnd lаrgеѕt metro area in thе region, Memphis has more renters than homeowners and is a hub for business activities that produces employment. 

Is Memphis going to be one of the best real estate markets for investors?

I just completed a free podcast on my opinion of the Memphis market and what I think 2022 will bring. The focus was on consistency and values. I think our market and the demand is as strong as it has ever been. I also think our pricing has flatlined. So, either way, if you are an investor and you are looking to enter the market, I think there are deals to be had. You just have to trust your property source and your boots on the ground. 

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@Divanshu Arora -  I don't think there will ever be a "best" market for investors.   One of the reasons I love investing in real estate is that it is so diverse in both types of investments and those who invest.  I've been investing (and living) in Memphis for almost 10 years and I couldn't be happier with the results of those investments.  

BUT I have only invested in SFH here. ALL my other (and larger) investments and syndications have been in MFH, parking, and storage in different parts of the country. So for me there have been many markets that I have found "best" for deals for myself an my investors.

Though one particularly interesting thing about the Memphis rental community (and I'll be curious if @Dean Harris and @Verna Littleton will agree?) is that we have generational renters.  I was surprised by this when I spoke with several of my tenants and they simply had zero interest in ever owning their home.   I'm guessing that is one reason that we have such a high rental community.

I currently own about 30 doors in Memphis, both commercial and residential. Demand for Memphis has never been better. My personal opinion is that Memphis will always be in demand due to cash flow and affordability. As long as you have a great crew and property management you will succeed in this market. Find out the zipcodes you are interested in and start making offers!

@Sam Wilson We have a good amount of "generational renters". Whether they know they can qualify for a loan or not, most of these tenants are comfortable and see no reason to move. The condition of a $800 rental in North Mem vs South Mem is about the same. So, those tenants usually stay in their home and in their community. One thing that usually gets lost with investors or gets swept under the rug because its hard to properly value is the extremely high community pride lots of "Memphians" feel for their community. Memphis residents are a proud group of people for very good reasons. As a life long Memphian myself, I understand what that feeling is. Not all, but a large portion of these tenants don't want to leave their community.