Memphis, Tennessee, is a Southern city with which to be reckoned. Located right beside the Mississippi River, the city has more to offer property investors, tenants, and rental property owners than just terrific real estate prices.
One of the Great Music Cities in the US
The Blues Hall of Fame is in the city, and, of course, Memphis is the home of Elvis’ Graceland. Most musicologists agree that Memphis is the birthplace of rock and roll. Ike Turner and his band recorded Rocket 88 at Sun Studios in 1951. Many agree that this was the first rock and roll song ever recorded.
Memphis’ Beale Street is another music shrine in the downtown area. It hosts the Beale Street Music Festival, which in 2020 spotlights artists such as Mavis Staples, The Lumineers, LIL Wayne, and more on a four-stage venue in Tom Lee Park.
Memphis in May International Festival
After more than 40 years of practice, this festival ranks up there among the most fun activities in existence. It includes four events:
The Beale Street Music Festival
International Week (Ghana highlighted this year)
The World Championship Barbecue Cooking Contest
The Great American River Run
Memphis: A Strong Business City
Besides being a hopping, beautiful, historic city, Memphis is well-known for its business savvy. It is the city that birthed the world’s first hotel chain and the first self-serve grocery store. Need we even mention that FedEx started in Memphis?
Additionally, Memphis is home to three Fortune 500 companies and over 100 Fortune 500 companies that operate out of Memphis. The city also piques the interest of Millennials looking for a place to call home. And, St. Jude Children’s Research Hospital is attracting Gen Z-ers by the bucketload.
Rental Property in Memphis
Millennials are not abandoning the idea of owning a home, but according to a new survey from Freddie Mac, 82 percent of renters say renting is more affordable than owning. At this time, the median rent in Memphis is $950 per month. Rentals in Memphis are almost 25 percent lower than the metro area and nearly 30 percent lower than the national average. These numbers bode well for the possibility of continued rent increases. The highest rents are in Downtown Memphis, Mud Island, and River Oaks, where the average is between $1,184 and $1,325.
House Affordability in Memphis
Real estate investors rely on two basic metrics. They are the affordability index and the historic price changes. The FHFA 2019 Q2 House Price index results in this reality:
Memphis’ home prices in the metro area have grown by over 110 percent since Q1 1991.
In the last five years, Memphis home prices have increased by almost 31 percent and expanded by 0.66 percent from the previous quarter.
The Kiplinger Tool shows that home prices in Memphis, since the real estate cycle peak in May 2006, have decreased by 7.6 percent.
Since the latest real estate cycle market bottom, March 2012, home prices in the city have increased by over 49 percent.
Memphis’ affordability index is 1 out of 10, which means the metro area is one of the most affordable places to own a house in the US.
Memphis’ Quality of Life Score
CBS News said this about the cost of living in Memphis: Memphis’ COL is 14.3 percent lower than the national average. Not only are there numerous places to see and visit (the zoo, museums, theaters, and fabulous shopping) but the average two-bedroom, two-bath apartment rents for approximately $726 a month.
Reedy and Company
Our company manages rental properties for local and foreign investors. We offer more services to property investors than most other companies in this industry, including in-house maintenance, leasing, collecting, sales, and acquisitions. Our team is committed to tending to your tenants while guarding the interests of our owners. Discover more about us and our services at Reedy and Company.