Memphis is a popular and growing city in the South that is attractive to both new homeowners as well as real estate investors. Depending on which type of buyer you are, you’re going to be looking at property with a different set of eyes. Read more about Memphis Real Estate Market.
But regardless of why you are buying, it’s important to know what the state of the Memphis real estate market is. As a homeowner, understanding Memphis real estate is important, because you want to buy in an appreciating area so that your equity increases, positioning you to eventually make money when you go to sell in the future.
When you are investing in Memphis real estate, on the other hand, you aren’t necessarily looking at move-in-ready houses in the perfect neighborhoods. You are looking for properties that need improvement in up-and-coming neighborhoods. These usually make the most profitable investments.
So what is it that you need to know before buying property in Memphis? Keep reading to find out now.
1. The Memphis Real Estate Market Is Still Approachable
The 2021 real estate market in Memphis is competitive, but not as competitive as many other parts of the country. Rather than homes going pending in hours, they often take a week or longer to go pending.
And rather than homes selling for far above list price, with multiple offers, homes are generally selling right around the list price. So in 2021, Memphis may be the best place to invest in real estate, as investors are still able to compete with homeowners to acquire property at fair prices.
2. Lots of People Are Relocating to Memphis
Tennessee is on the radar of homeowners and renters across the country. Many people are drawn to the bustling, music and arts-friendly city of Nashville. As a result, the surrounding suburbs have exploded in popularity.
However, Nashville continues to see an increase in the cost of living. In love with the mild weather in the mid-south, people who are looking for affordable cities in Tennessee are moving to Memphis in droves.
Memphis has always enjoyed a lower cost of living. If you need to see that for yourself, find a cost of living calculator online and input the info. The low cost of living makes the city appealing to young families. From food to housing to education, everything is more affordable in Memphis.
3. Business Is Booming
Memphis is currently one of the top-ranked cities to open a new business. Thanks to the population growth and a low cost of living, people have more discretionary income and are better able to support local businesses.
The dream of entrepreneurship is alive in Memphis, which you can’t say the same about other large cities like Nashville. As a result, commercial real estate is also a good investment in the city, as many people are starting businesses as they have a good chance of success, staying in business for many years.
4. Liveability for Millenials
More than half of the US population is now a Millenial, or younger. As a result, trends across the country are changing rapidly.
Ask what Millenials value in a city, and they’ll tell you they want good work opportunities, easy transportation to and from work, and lots of opportunities for play.
This has drawn many to big cities like New York, Portland, and Seattle. However, with a high cost of living, and ever congested streets, liveability quickly becomes an issue in these places.
Millennials are looking for other cities that offer solid work opportunities, with entertainment options, as well as nearby outdoor recreation. Since Memphis offers all of that and more, Millenials are filling the city, creating a young and more dynamic population in the city.
5. Understand Memphis Real Estate Market Growth
Homes in Memphis are very affordable, with an average purchase price in 2021 of around $220,000. This is up considerably from the average of $150,000 just a year ago.
So yes, prices are inflated, but the upward trend is expected to continue. In many other areas, inflated homes are selling for half a million or more, making Memphis a great place for both homeowners and investors to lock in a lower-priced home that is expected to increase in value continually.
6. Corporations Are Moving In
With growth taking place in the city, many massive corporations are moving in and setting up shops with multi-million dollar buildouts. This includes companies like Bass Pro Shops and Ikea.
Along with the popular grocery store chain, Trader Joe’s, plenty of breweries, distilleries, hotels, and apartment complexes are going up left and right, rapidly changing the dynamic of the area.
7. New Development Is Evident
For many years, much of Memphis was rundown. You could drive around town and see countless homes that were boarded up and abandoned. But once investors realized what a gold mine the town was, investors starting coming in like crazy and revamping entire streets and neighborhoods.
They would buy these dilapidated homes, fix them up, and either rent them out or sell them. As such, there aren’t as many empty houses anymore, and many of the streets and neighborhoods are fixed up and looking much nicer.
You can also see this neighborhood transformation taking place as apartment complexes are going up, both in the metro area, as well as in the greater Memphis area and suburbs.
8. Memphians Love Living Here
Once people move to Memphis, they don’t want to leave. There is so much to love about the city.
One of the best aspects of living here is the weather. In the summer, temperatures average less than 80 degrees while the average winter temperatures are above 50.
This attracts people from around the country who are looking to escape bitter, harsh winters of the north and extremely hot summers in the deep south and southwest.
As a result, residents in Memphis spend a lot of time on their front porch, as the weather is almost always pleasant. the city is friendly and meeting new neighbors is easy.
The arts are celebrated in the city, showcasing its culture while also welcoming new residents and ideas. And with the Mississippi River bordering the city to the West, and with the large Arkabutla Lake to the South, there are endless amounts of outdoor recreation to be had.
Visit Memphis once and you may find yourself never leaving.
Every Reason to Love Memphis
As you can see, there are many appealing factors when it comes to the Memphis real estate market. The city has a lot going for itself.
Residents love it, and the market is growing, making it attractive to buyers, renters, and investors. The population is growing and getting younger, without forsaking its heritage. It might be the perfect time to get into the Memphis action.
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