Real estate is a distinct financial asset that offers promising benefits. It provides cash flow, tax benefits, and equity creation.
Real estate also provides competitive risk-adjusted returns and a buffer against inflation. Whether you invest in physical properties or REITs, real estate strengthens portfolios.
Price is always a key element to consider when investing in real estate. Looking at the market, Memphis real estate offers the best prices.
If done right, investing in real estate in Memphis may be a smart move. If you want to learn the tricks, continue reading to know more about buying real estate in Memphis.
Table of Contents
- Why Invest in Memphis Real Estate
- Where to Invest in Memphis
- Invest in Memphis Real Estate
Why Invest in Memphis Real Estate
Apart from price advantages, Memphis real estate is a thriving market due to many factors. They include:
Memphis has a massive population of young people. For the past ten years, the region has grown at a rate of 4% per year due to this youthful density.
Memphis is the 42nd largest city in the United States, with almost 1.4 million people. It makes a good location for real estate investors because of its vast demographic. It also fits a lot of real estate trends.
Real Estate Market
Memphis’s real estate market is one of the country’s top five fastest-selling markets. Homes were selling fast because of the few home listings. Competition between home buyers and investors grew due to this.
For a long time, there was a shortage of housing in Memphis. Fewer new homes are being built due to a lack of trained labor and increased land development costs.
The supply-demand imbalance in Memphis helps keep prices high. This imbalance also keeps rental property demand strong.
If you want to know more about maintaining properties, check out these property management tips.
As citizens and businesses flock to the city, annual employment growth soars in Memphis.
According to the Bureau of Labor Statistics, many job sectors show fast signs of recovery. It includes construction, manufacturing, professional and business services, and leisure and hospitality.
Memphis has been the top metro area in the United States for job creation. They compared this to the average region’s employment rate over the last ten years.
Three Fortune 500 companies, namely FedEx Corporation, International Paper Co, and AutoZone Incorporation are in Memphis.
Strong Renters’ Market
The rental market in Memphis is strong. The drive comes from the low supply of properties. Demand for housing in smaller, secondary markets is also an added factor.
Memphis is the battleground for first-time homebuyers and investors. Yet, investors appear to have the upper hand.
Over the past two years alone, investors bought hundreds of homes in Memphis. They transform these houses into rental properties. Renters now occupy more than 53% of the housing units in Memphis.
Tennessee real estate could be the ultimate winning trinity for rental property owners. It has a diverse economy, a strong employment market, and good quality of life.
Historic Price Changes and Housing Affordability
Experienced real estate investors will analyze price margins, swings, and housing affordability. This measures how well a rental property or asset will perform in a place over time.
If we go to the specifics, studying the price index will help you figure out the pace at which the market rises or falls. Affordability will help you measure if and how people buy or rent these commodities.
Quality of Life
Memphis is one of the top ten most affordable cities to live in the United States. Its cost of living is 5% lower than the national average. It’s the best place for business and careers.
Memphis is a great place to live in with its great weather and culture.
Where to Invest in Memphis
If you want to invest in real estate, invest in Cordova, East Memphis, Southaven, and Olive Branch. These places are showing the most growth and offer a good investment opportunity.
Investing in Cordova
Cordova is a great investment location. Its property values are around $200,000, and the suburbs have a lot to offer homeowners.
Walmart, Kroger, Target, and even IKEA are all found in the region. Cordova is also close to parks and green spaces like Shelby Farms Park.
Cordova offers easy access to all Memphis’ main highways. It includes Germantown Parkway, Interstate 40, and Walnut Grove Parkway.
Investing in East Memphis
There are a lot of older properties in East Memphis that investors renovate for a lot of money. Younger people are moving in and starting families in this region.
There is full access to many of the best Memphis dining and shopping in East Memphis. Target, Kroger, Home Depot, Whole Foods, and Lowes are a few large retailers in this area.
More people are moving into the neighborhood, and homes are getting refurbished. Median rent prices are rising, making turnkey properties in this area a great place to invest.
Investing in Southaven
Southaven is one of the fastest expanding communities in Mississippi. It’s close to many folks who work in Memphis’s south side warehousing centers.
The warehousing industry generates a large number of tenants for rental properties. It creates an opportunity for turnkey investment. Walmart, Kroger, Target, and the Tanger Outlets are a few of the major retailers you’ll need around.
Investing in Olive Branch
Olive Branch is a great investment location because it’s close to the city and neighboring metro areas. It provides excellent public schools and affordable housing.
Olive Branch is number five on Time Magazine’s Best Places to Live list. People can access the best shopping and dining experience in the area.
Olive Branch is also a suburb of Memphis, where a good chunk of the population work in the commercial sector. Walmart, Kroger, and Target are a few of the retailers in Memphis.
Invest in Memphis Real Estate
Ready to invest in Memphis Real Estate? Understanding the high potential returns of investing in Memphis is the first step.
Measure home values, employment rates, income levels, and other investment criteria when you invest in real estate. These important investment variables help you make efficient real estate investment decisions.
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