Memphis and its suburbs have been named the tenth top housing market for growth in 2020 by Realtor.com. This general area includes northwest Mississippi and eastern Arkansas, the location of West Memphis across the Mississippi River.
The city has a population of around 700,000 while the larger metropolitan area that includes the neighboring states tops 1.3 million people. These statistics will probably change after the 2020 census since this area has continued to grow over the past 10 years.
Memphis is the largest city in Tennessee and the state’s major port on the river. The city is known as a home of jazz, blues, and rock n’ roll. It has a thriving tourist industry.
This city has several suburban areas with homes priced in the $150,000 to $250,000 range. There are million-dollar mansions as well. This makes Memphis suburban living desirable, according to Reedy and Company, real estate specialists.
Residents are attracted to an urban area that offers job growth and affordable housing. The Realtor.com list of top 10 growth markets names six cities in the south where home prices are lower than in other areas of the country. It is easier for people to qualify for loans in many southern cities including Memphis where housing prices are less than in other areas. This makes the region an attractive place for real estate developers and investors.
The Greater Memphis Metropolitan area has become even more desirable since Google announced that it would be creating more than 350 new jobs at a new facility in northwestern Mississippi. This is the new U.S. Google Operations Center that will employ a number of high-tech employees. The company will attract people from all over the country and from foreign countries.
Amazon is opening its second Mississippi fulfillment center in Olive Branch, just southeast of Memphis in Desoto County on Highway 78. This center will have 500 full-time jobs available. The first Amazon Center is located in nearby Holly Springs. This 554,000 square foot center employs 850 people.
In addition, many people working for Google in the San Francisco Bay area or for Amazon in Seattle may leave these very expensive regions for more affordable housing in the Memphis area where their income will go farther.
Housing Demand Increases
The demand for housing, including apartments and condominiums has already lead to price increases in the Memphis area. There is a demand for new construction with an estimated 350 subdivisions slated for new homes in the suburbs. However, increases in construction costs have made the purchase of a new starter home more difficult for some families. These are the first-time buyers who find it more difficult to qualify for down-payments and loans.
Others who want to own a home are searching for older homes that may need improvements. There are older homes in various areas of Memphis that list under the $200,000 range.
Many people new to the area who may become buyers move into apartment communities that offer recreational and family amenities. They are attracted to these communities in suburbs that offer good shopping and other services. Some families may rent single-family homes instead of condos or apartments. Many of these properties are owned by investors and managed by Reedy &Company.
The Memphis area, including northwestern Mississippi, will experience extensive growth over the next two years. This is also an outstanding opportunity for investments in small businesses and multi-family residences. The Amazon and Google facilities will be located in industrial parks. Housing will develop near these industrial parks to make commuting easy for employees.
Contact us at Reedy & Company Realtors for more information on investing in real estate in the Memphis area. This includes homes and apartments that are managed by us as we help you to grow your real estate portfolio.