There’s no denying that the real estate market is absolutely booming right now. If you’re looking for a great city to invest in real estate, Memphis, Tennessee should absolutely be on your radar.
This gem on the banks of the Mississippi offers a great economy, vibrant culture, and excellent property values. Read on to learn more about why you should purchase real estate in Memphis, TN.
Thriving Job Market
If you’re looking for a city to invest in real estate, you want to make sure that the people there are making money. This is absolutely the case in Memphis.
Employment rates, jobs available, and overall GDP have all gone up in the last ten years. The rate of increase has outpaced similar cities such as Minneapolis – St Paul, New Orleans, and St Louis.
There are plenty of jobs available for all types of workers, with fortune 500 companies such as FedEx operating alongside small businesses. Memphis is also home to one of the busiest cargo airports in the world and a busy rail system alongside the Mississippi River, making it a great place for blue-collar workers as well.
Great Real Estate Market
A great city for real estate investment needs to have both growth and affordability when it comes to housing prices. Lucky for you, Memphis has both.
Memphis is one of the most affordable large cities, with an average sales price of just over $200,000. This is almost half the average sales price of Tennessee’s neighboring city Nashville, and well below the average prices of similarly sized cities such as New Orleans and St Louis.
However, just because the houses are affordable, it doesn’t mean that the prices aren’t going up. The average home sales price has increased over 20% over just the last year. This is very impressive, even in this crazy nationwide real estate market.
All this is to say, it’s not just profitable to invest in real estate such as these properties in Memphis, it’s also affordable.
If you’re going to invest in real estate in a city, you want there to be people around to buy or rent your properties. In Memphis, there are plenty of people, and it’s only getting bigger.
Memphis has been experiencing year-over-year population growth, resulting in a population increase of 4% over the last 10 years. This has resulted in Memphis becoming one of the 50 largest metropolitan areas in the country, with a population of over 1.4 million people.
The people moving to Memphis are also mostly Millenials, making Memphis a young, vibrant city. The median age in Memphis is under 37, and is younger than both the national average and state average in Tennessee. A younger population is more likely to be renters or to be buying their first home, both of which are great for real estate investors.
Excellent Quality of Life
Whether you’re investing in real estate in a new city, planning on living there, or both, you want it to be a quality place to live. Memphis is just the place you want to be, whether you’re young and single or raising a family.
Memphis is one of the least expensive places to live in the country, with the cost of living at over 10% lower than the national average. As we said before, the economy is thriving, leaving people with extra money to spend.
Memphis is also a cultural hub, with a thriving food, arts, and music scene. Beale Street is legendary for its music venues, festivals, and overall contribution to blues music. Memphis is also known for its barbeque, and you’re in for a tasty treat at any of the restaurants you step foot in.
If outdoor activities are more your style, there’s plenty to do there as well. Located right on the banks of the Mississippi, there are parks and recreation galore. And if you want to catch a sports game, there are plenty of minor league teams in Memphis, as well as a thriving NBA franchise with the Memphis Grizzlies.
Strong Rental Market
If you’re looking to invest in real estate, you’re probably looking to rent out your properties, at least for a little while. Thanks to a population that is growing faster than the housing market can keep up with, renting is easy in Memphis.
Rent prices in Memphis are relatively inexpensive, but remember, so are the housing prices. In addition, rent has increased by over 10% every year in recent years, meaning that your investment will just keep getting more profitable.
Over 40% of Memphis homes are renter-occupied. This means that regardless of which neighborhood you choose to invest in, you won’t be the only rental property on the block.
Best Neighborhoods to Buy Real Estate in Memphis, TN
Now that we’ve convinced you to invest in real estate in Memphis, TN it’s time to narrow down the neighborhoods to start investing in.
If you’re looking for convenience and affordability, East Memphis is where you want to be. While rental prices are low, so are the average home prices. And with places like the Memphis Botanical Gardens, Memphis Children’s Museum, and parks galore, you’ll never run out of things to do.
For more upscale real estate investment, consider looking towards Germantown. Located about 30 minutes southeast of downtown Memphis, this suburb features beautiful homes with large yards. Real estate prices will be higher, but so will rental prices. This suburb is perfect for families, especially those with school-age children. Germantown’s school district is consistently ranked as one of the best in the entire state.
Make Your Real Estate Dreams Come True
Now that you know all about the real estate in Memphis, TN, you should be ready to invest in your next home. Memphis is a beautiful city that not only deserves your investment but also deserves your time. From the thriving economy to the affordable housing to the vibrant people and culture, Memphis is the ideal place for your next real estate investment.
For more information on everything from home ideas to finance, keep reading our articles!