Located in Southwestern Tennessee, Memphis is a culturally-rich city with deep roots in music, food, and history. It offers diverse neighborhoods, access to higher education, and one of the country’s top children’s research hospitals. Known as America’s Distribution Center, Memphis also offers great career opportunities at some of the nations’ top companies. As a result, investment properties in the nearby communities of Horn Lake and Walls, Mississippi have become very attractive for real estate investors because they provide the benefit of being near a major city with a steady stream of potential rents.
Affordable Cost of Living
Long hailed as one of the county’s most affordable markets, Memphis’s cost of living is 14% lower than the national average, making the region an excellent option for families and individuals. Within the state of Tennessee, Memphis is the third most affordable metropolitan area in Tennessee.
In 2023, the city’s housing expenses are 21% lower, utility prices are 10% lower, grocery prices are 9% lower, and healthcare bills are 13% lower compared to the national average.
Excellent Job Market
Memphis ranked among the ten best cities in the United States for job seekers due to the city’s advancements, job security, salary percentile, and market favorability. And, according to Bloomberg, Memphis is one of the top three large metro areas in the entire country regarding job growth. Over the past decade, the city has seen nearly a 1.4 percent increase in the number of jobs available within the metro area.
Ford Motor Company’s BlueOval City is expected to bring some 30,000 direct and indirect jobs to the region over the next few years.
New York-based SmartAsset recently studied 76 of the largest cities in the United States to see where a $100,000 salary. Memphis came out on top.
In short, Memphis’s strong economy provides a solid foundation for career growth and business.
Mild Weather Conditions
Memphis’s summers are known for being mostly hot while winters cold and short, but the city’s overall climate is mild. Memphis has an average temperature of 62 degrees Fahrenheit, so you would find most residents hanging out on their patios or enjoying the area’s many amenities during these days.
During winter, the city receives lots of sunshine and around three inches of snow, making Memphis the perfect location for families and individuals wanting to escape the cold weather.
Diverse Housing and Renters’ Market
In 2021, Memphis ranked #1 in the 10 Cities First-Time Homebuyers Want to Move Into. However, housing in Memphis has been in short supply in recent years. In turn, the imbalance in demand and supply keeps the prices high, yet affordable, and the demand for rental properties strong.
According to the most recent statistics, nearly 53% of the housing units in Memphis are occupied by renters. With affordable living costs, excellent job markets, and a diverse real estate market, Memphis has become a perfect option for rental property investors.
Home Prices Continue to Rise
In recent years, Memphis has witnessed a steady increase in home prices, further adding to its appeal for real estate investors. The combination of a growing population, limited housing inventory, and strong demand has resulted in a favorable market for property appreciation. By investing in Memphis real estate, investors can potentially capitalize on the upward trend of home prices, generating long-term wealth through property value appreciation in addition to rental income.
This potential for sustained growth in property prices enhances the overall investment prospects and reinforces Memphis as an attractive destination for real estate investors seeking both immediate rental income and long-term value appreciation.
New Home Communities Bring Special Benefits for Investors
The combination of a strong rental market and rising home prices is one of the primary reasons Meridian Pacific Properties remains solely focused on the Memphis market. We continue to develop communities of build-to-rent properties and provide real estate investors with turnkey SFR options thanks to our fully integrated property management team, Meridian Property Management.
For out-of-state investors, Meridian makes it easy to purchase new investment homes in Walls or Horn Lake, Mississippi. Our team has decades of experience investing in real estate and can expertly answer your questions, as well as provide information about current incentives not advertised online. To learn more, please contact Brian Conlon at (760) 798-3095.