Memphis Real Estate Market 2026: Home Values Down 8.7% -- What the Data Actually Shows

Memphis has one of the sharpest year-over-year home value declines of any major metro: down 8.72% as of February 2026.

But Memphis is only 5.0% overvalued relative to local fundamentals as of February 2026. The median listing price is $299,450. The income needed to buy at current prices is approximately $79,593.

PropertyIQ scores Memphis a 50 out of 100 as of February 28, 2026 — exactly at the national average.

What Is Driving the Price Decline

Memphis median home values are down 8.72% year over year. Inventory is up 9.02% year over year. New listings increased 12.6%. This is a supply-demand imbalance: sellers are adding listings faster than buyers are absorbing them.

The Key Context Is the Starting Point

Memphis saw home values rise 27.97% over the five years ending February 2026. The current correction is unwinding a portion of that appreciation. At 5% overvaluation, the market is close to fundamental equilibrium — the correction may be nearing its end.

The Cash Flow Angle

Memphis has historically been one of the top cash flow markets in the country. Average rent is approximately $1,427/month as of December 2025. With a Zillow median home value of approximately $240,408 as of January 2026, the monthly rent-to-price ratio is roughly 0.59%. This is among the strongest rent-to-price ratios of any major metro and is why Memphis consistently appears in cash flow rankings.

The Forward Picture

Zillow forecasts +1.5% near-term appreciation as of December 2025. The demand score is 46.2 out of 100. Homes average 79 days on market. These are not strong demand signals, but they are consistent with a market bottoming rather than accelerating downward.

The Risk

Memphis has a lower median income base ($64,743 as of 2023 Census) than most metros. Investors should underwrite conservatively on vacancy rates and property management costs. Cash flow is available, but the income base limits the tenant pool quality and size compared to higher-income metros.

PropertyIQ score as of February 28, 2026. Listing and inventory data as of February 1, 2026. Rent and forecast data as of December 2025. All data for informational purposes only.