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Why Memphis

There’s a lot more to like about Memphis besides the great real estate prices.

Home to Elvis’ Graceland, the Blues Hall of Fame, and the World Champion Barbecue Cooking Contest, the city of Memphis is a cultural hotspot brimming with revitalization and growth. Strategically located on the Mississippi River, the “bluff city” is home to more than 1.3 million residents, several colleges and universities, and thousands of companies large and small, including multiple major corporations that have been bringing jobs and innovation to the city for decades.

On the other hand, the low home prices and high rental rates helps to make Memphis a great housing market for investors. Combined with the diversified economy, strong job market, and excellent quality of life, Memphis may offer the perfect winning trifecta for rental property investors looking for steady cashflow.

Why Invest in Memphis Real Estate

Highlights

  • #1 Fastest growing industrial Market in USA
  • Logistics Hub with the busiest air cargo airport in the World
  • 3rd largest rail center in USA
  • 3rd least impacted market in USA from COVID-19
  • Top 10 Market in USA for appreciation
  • Top 10 Market in USA for tech jobs
  • 2nd Busiest Medical Device Manufacturing center in USA
  • Landlord friendly laws
  • Low taxes and property insurance
  • Warm mild climate reducing risk of freezing pipes, flooding, and tornados
  • Tenants are responsible for the yard work, all utilities, and bring their own appliances

Appreciation

  • 2.5% YoY over the last 30 years
  • 3% YoY over the last 10 years
  • 5% YoY from 2016 - 2019
  • 12-15% YoY since 2020
  • 9% in 2022
  • 3% in 2023
  • 3% in 2024

Population

  • Top 50 Largest Metro
    • Memphis metro population of 1.3 million (44th largest metro in US)
  • High growth rate
    • 2.3% projected population growth through 2024
    •  30,000 new residents moving to the area over the next few years
  • Memphis is diverse
    • African-Americans 47% of the population
    • White Americans 45%
    • Hispanics and Asians 7.7%
  • Young renter population
    • Median age 36.5 years, younger than both state and national population
    • More than 40% of the people living in Memphis are between the ages of 25 and 54 years.

Job Market

Memphis, TN, is experiencing a surge in economic growth, making it an increasingly attractive destination for real estate investors. With major developments like Xai’s AI-driven logistics expansion, Ford’s BlueOval City, the St. Jude Children’s Research Hospital expansion, and the Amplify Cell Technologies battery plant in Marshall County, MS, the region is poised for long-term job creation and economic stability.

Tech & Logistics: Xai’s Impact on Memphis

Xai, an artificial intelligence and logistics company, is positioning Memphis as a leader in supply chain innovation. With Memphis already home to FedEx’s global headquarters, the city's logistics sector is growing rapidly, bringing high-paying tech jobs and increasing demand for housing.

Ford’s BlueOval City: A Game-Changer for the Region

The $5.6 billion Ford BlueOval City project, located just outside Memphis, is expected to generate 6,000 new jobs in the electric vehicle (EV) sector. As a hub for EV manufacturing, the project will attract a steady stream of workers needing quality rental housing close to the facility.

St. Jude Expansion: Strengthening Healthcare & Research

St. Jude Children’s Research Hospital is undergoing a $12.9 billion expansion, adding thousands of jobs in healthcare, research, and administration. With professionals relocating to Memphis, the demand for high-quality rental properties in desirable neighborhoods will continue to rise.

Amplify Cell Technologies: Fueling Job Growth in Marshall County

The new Amplify Cell Technologies battery plant in Marshall County, MS, will bring thousands of additional jobs to the region. As a key player in the EV battery supply chain, the facility will boost employment and attract workers who will seek housing in the Memphis metro area, further driving the rental market.

For turnkey real estate investors, this wave of economic expansion presents a prime opportunity. More jobs mean higher rental demand, long-term stability, and strong appreciation potential—making Memphis an ideal market for passive income through rental property investments.

Real Estate Market

  • The median value in Memphis is just $140,000 (as of Sept. 2024).
  • Over the past 12 months, home values in Memphis have gone up by 5.9% while the average days on market have consistently trended downward since 2016.
  • With a median list price of $119 per square foot, asking prices for homes in the City of Memphis run nearly 50% less than the rest of the US.
  • Average days on the market is 54.
  • Bidding wars are very common on new listings.
owning a rental property

Strong Renters’ Market

  • Median rent in Memphis is $1050 per month, up from $950 one year ago.
  • Rents in Memphis are nearly 25% lower than the metro area and almost 30% lower than the national average, indicating a strong possibility for continued rent increases.
  • 53% of the households in Memphis are renter-occupied.

Landlord-Tenant Laws in Memphis

We advise our investors to get familiar with the landlord-tenant laws of the state they want to invest in. In Tennessee, landlords have the liberty to charge any amount for a security deposit. Also, the landlord-tenant laws of Tennessee provide support to landlords making it possible to evict, within a reasonable timeframe, if needed. For instance, a landlord may give a Tennessee tenant quit notice that leaves the tenant just 14 days to pack out before eviction is filed if the tenant has repeatedly bridged the rental agreement or done an act that affects safety and health (note that a notice must have been issued to the tenant after the first violation). Reedy and Company has a dedicated in-house collections department that is in place to manage this process for you, alongside an in-house legal team.

Centrally Located

Memphis is the distribution center for the USA because we are located in the center of the US based on population. Transportation companies can reach more people over night than in any other city which makes Memphis ideal for large companies like FedEx, Amazon, Nike etc who rely on shipping packages 365 days a year.

Low Supply

Pre-2008 Memphis saw roughly 4,000 new construction properties come available per year. Since then, this number has dropped to roughly 1,000 with most of these properties being over $300,000. This means the current houses under $300,000 have a great chance of increasing in value because there is limited new supply.

 

If you’re interested in Memphis investment properties, Reedy and Company is here to help! You can rely on our team of experts to guide you to the best real estate investments available, so you can always get the most value for your money. Reedy and Company provides a full service package to our investors, and helps them reduce management problems by offering in-house maintenance and rehab crews, a quality leasing team, collections department, excellent and dependable communication, and full accounting.

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