If you’re looking for a reason to invest in Memphis real estate, look no further than the city’s booming economy. With an unemployment rate of just 4.3%, among the lowest in the country, and an increasing population, there’s no shortage of people looking for a place to live in Memphis.
The city’s housing market is strong, with prices rising faster than the national average. If you’re looking for a solid investment, Memphis is the place to be.
1. Rising Population
Tennessee’s entire population is mostly made up of young people. This youthful emphasis has kept the region’s growth rate at 5% over the last 2 decades.
Memphis is the 42nd largest city in the United States, with a population of about 164 million people. Memphis’ diverse populace makes it an ideal location for real estate investment.
According to the Memphis Area Association of Realtors, the typical sales price for a Memphis-area home in all properties in January 2022 was $190,000, up 18.12% from last January’s average of $168,000. Residential properties were purchased for a median price of $189,000, up 17.38% from last year, while new homes sold at a median price of $419,900, up 40.3%.
In January, there were 1,322 new existing home sales, down -13.0% from the previous year. The city’s population is also growing, with a projected increase of 2.4% over the next five years. These factors make Memphis a great place to invest in real estate.
2. Quality Of Life
When considering whether to buy Memphis real estate, it’s important to consider the overall quality of life in the city. Memphis is known for its rich cultural heritage, its delicious food, and its friendly people.
The city also boasts a low cost of living, and its real estate market is steadily growing. These factors all contribute to a high quality of life in Memphis, which makes it an appealing place to invest in real estate.
Finding the best property management company that can assist you in determining where you should buy real estate in Memphis is a difficult task. You must also evaluate the services they offer. So do your research and ask around to get the best match for your needs.
3. Affordability
Memphis is an affordable city, with a median home price of $129,000.
Memphis also has a cheaper cost of living than the national average by about 24%. Memphis property values have also increased by 16.2 % in the last year.
4. Job Market
Memphis is a thriving city with a thriving job market and a thriving real estate market. Anyone searching for a strong return on their investment should consider investing in real estate.
According to Bloomberg, Tennessee real estate has been the number one metropolitan area for the creation of employment opportunities over the last ten years, with positions in construction, transportation, information technology, politics, and business.
Memphis’ job market is strong and growing, attracting new businesses and jobs, which is good news for the real estate market because more people are moving to the city for work. The city’s strong job market is driven by its many major employers, including FedEx, St. Jude Children’s Research Hospital, and the University of Tennessee.
5. Profitability
Because the Memphis property market is so affordable, investors can purchase low-cost properties and resell them for a profit. As a result, the investor will receive a substantial sum of money.
Rental prices are rising at a rate of about 9% per year on average. In Memphis, tenants make up about 43% of households, while owners make up 59 percent. Furthermore, the average cash to cash return on an investment property in Memphis is 3.49 percent.
Cash on cash return refers to the amount of money earned on money spent on real estate. However, depending on where part of Memphis the property is in, the cash-on-cash return can be a little higher.
It’s also worth noting that Memphis’ real estate inventory is beginning to reduce as more people move to the city. This is beneficial to investors because Memphis properties are in great demand, and the more the demand, the higher the profit.
6. Investors Are In High Demand
As a potential investor in the Memphis real estate market, you should be aware of the strong renters market that exists in the city. According to the most recent data, approximately 54% of the city’s population rents their home.
This high percentage of renters creates a high demand for rental properties, which can lead to increased profitability for investors. Additionally, the average amount that renters are spending on monthly rent has been steadily increasing in recent years.
This trend is expected to continue, as the city’s population continues to grow. With a strong renters market, investing in Memphis real estate can be a wise decision.
7. The Perfect Rent To Price Ratio
Tennessee has one of the finest rent-to-price ratios in the country. For example, on a $100,000 property, the rent will be roughly $1,000, indicating a 1% rent-to-price ratio; this means that investing in Memphis real estate yields a higher return on investment because of the rental income. As a result, there is a compelling motive to invest in Mеmрhi real estate.
Also, it is really easier and cheaper to buy than to rent, which means you may buy a house for less money than comparable rents, allowing you to have a positive financial situation. Another reason to invest in Memphis real estate is the affordable housing market.
The house prices are well below the national average, with a population of 651,073, 251,732 total housing units, and a median house value of $ 121,161.The single-family detached house is the most common type of dwelling in Memphis, accounting for 60.00 % of all housing units.
Large apartment complexes, which account for 26.50 percent of high-rise apartments in Memphis, duplexes, converted apartment homes, or other 8.45 % of small apartment buildings, and numerous rows of dwellings are also widespread. 5.60 % of all homes With 47.30 % owners and 56.67 % tenants, the city features a mix of owners and tenants.
Invest in Memphis Real Estate
Now is a great time to invest in Memphis real estate. The city is growing and has a lot to offer potential investors. The costs of living and doing business in Memphis are relatively low, and there are many opportunities for growth.
Memphis is a great place to live, work, and raise a family.
Read and learn more about how your Memphis real estate dreams can come true!
