Memphis

TNMemphis metropolitan area

Real Estate Market Analysis

Q3 2025 Report
$224,900 (June 2025)
Median Home Price
approx. 621,000 (city), 1.3 million (metro area)
Population
$47,000 (city, 2024 estimate)
Median Income
Shelby County Schools: mixed ratings (average to below average)
School District Rating

Market Overview

Property Values

$224,900 (June 2025)
Median Home Price
$107 (June 2025)
Price per Sq Ft
+1.3% (April 2024–April 2025)
YoY Change

Market Performance

Days on Market25 days (median, April 2025)
Market TypeBalanced, with rising inventory and moderate price appreciation
Months of SupplyData not specified, but inventory up 11.9% MoM (May–June 2025)

Sales Activity

Sales Volume1,161 homes sold in January 2025 (down 7% YoY)
Metro AreaMemphis metropolitan area
Populationapprox. 621,000 (city), 1.3 million (metro area)

Economic Indicators

Employment & Growth

Unemployment RateApprox. 4.5% (2024 estimate)
Job Growth RateApprox. 1.2% (2024 estimate)
Median Household Income$47,000 (city, 2024 estimate)

Major Employers

  • FedEx
  • International Paper
  • St. Jude Children's Research Hospital
  • AutoZone
  • Methodist Le Bonheur Healthcare

Demographics

approx. 621,000 (city), 1.3 million (metro area)
Population
34.5 years
Median Age
Flat to slightly declining (approx. -0.2% annually)
Population Growth
24% bachelor's degree or higher
Education Level

Family Composition

34% married households, 30% with children under 18

Key Industries

Logistics & TransportationHealthcareEducationManufacturingTourism

Education

School District

Shelby County Schools: mixed ratings (average to below average)
District Rating

Top Schools

  • White Station High School
  • Germantown High School
  • Memphis University School (private)

Higher Education

  • University of Memphis
  • Rhodes College
  • Christian Brothers University

Infrastructure & Development

Major Projects

  • Union Row mixed-use development
  • St. Jude expansion
  • Downtown riverfront revitalization

Transportation

  • I-240/I-40 interchange upgrades
  • Memphis International Airport modernization

Planned Developments

  • South City redevelopment
  • Broad Avenue Arts District expansion

Lifestyle & Amenities

Recreation

  • Shelby Farms Park
  • Mississippi River Greenbelt
  • Memphis Zoo

Dining & Entertainment

  • Beale Street
  • Cooper-Young District
  • Overton Square

Cultural Attractions

  • National Civil Rights Museum
  • Graceland
  • Memphis Brooks Museum of Art

Investment Analysis

Investment Opportunities

  • Affordable entry prices for investors
  • Strong rental demand in select neighborhoods
  • Above-average rental yields

Growth Outlook

Modest appreciation expected; stable rental market with pockets of opportunity

Market Risks

  • High rental vacancy rate (10.5%)
  • Slow population growth
  • Some neighborhoods with declining values

Rental Market

Average rent $1,082 (May 2024); price-to-rent ratio 10.46

Marketing Intelligence

Target Demographics

  • First-time buyers
  • Investors seeking cash flow
  • Relocating families

Marketing Channels

  • Zillow/Realtor.com listings
  • Social media (Facebook, Instagram)
  • Local real estate events

Pricing Strategies

Price slightly below recent comps to drive interest in a competitive market

Common Objections & Response Strategies

Objection: Crime rates in certain neighborhoods

Response Strategy:

Provide neighborhood-specific crime data and highlight security features or safer areas.

Objection: School quality concerns

Response Strategy:

Share objective school ratings and suggest top-performing districts or private options.

Objection: Worries about home value appreciation

Response Strategy:

Present historical appreciation data and focus on rental income potential for investors.

Professional Recommendations

1

Educate buyers on neighborhood-level trends and risks.

2

Advise investors to focus on cash flow and vacancy rates.

3

Encourage sellers to price competitively and invest in staging.

4

Leverage digital marketing and virtual tours to reach remote buyers.

5

Stay updated on local development projects and school ratings.

Competitive Analysis

Comparable Markets

  • Birmingham, AL
  • Little Rock, AR
  • Louisville, KY

Market Positioning

Memphis is positioned as an affordable, cash-flow-oriented market for investors and first-time buyers.

Competitive Advantages

  • Lower median home prices than national average
  • Strong logistics sector supporting rental demand
  • Above-average rental yields

Price Comparison

Median home price ($224,900) is significantly below the national median (~$400,000, 2025)

Investment Metrics

6–8% (typical for single-family rentals)
Cap Rates
7–10% gross yields in affordable neighborhoods
Rental Yields
10.46
Price-to-Rent
Strong in lower-priced neighborhoods; moderate in higher-priced areas
Cash Flow
1–2% annual appreciation expected in 2025
Appreciation

Buyer Journey Insights

First-Time Buyers

Benefit from affordable prices and down payment assistance; should focus on move-in ready homes in stable neighborhoods.

Move-Up Buyers

Can leverage equity gains from previous homes; may face limited inventory in higher price brackets.

Downsizers

Find good value in smaller homes and condos, especially in East Memphis and Midtown.

Investors

Attracted by high yields and affordable entry; should carefully vet neighborhoods for vacancy and appreciation risk.

Relocators

Drawn by job opportunities and lower cost of living; should prioritize proximity to major employers and amenities.

This city analysis was generated using comprehensive market data and AI intelligence.

Market conditions change rapidly - consult with local real estate professionals for the most current information.

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