Memphis, TN Housing Market
AI-powered market intelligence for the Memphis, TN-MS-AR metro area.
PropertyIQ Scores
Memphis, TN Market Analysis
Market Overview
Memphis is a weak housing market based on its PropertyIQ Score of 13/100. The median home value is $244,737, above the state average of $227,264, and the rent index is $1,400, well above the state average of $947. Yet the score is pulled down by soft price momentum and slow selling conditions: 12-month home value momentum is 1.99%, 3-month momentum is -0.90%, median days on market is 68, and 25.3% of listings have a price cut. Those figures point to a market where buyers have time and sellers are adjusting expectations.
Economic benchmarks are mixed. Median household income is $66,401, above the state average of $60,773, but unemployment is 4.7%, above the state average of 4.0%. This suggests some households have higher incomes, but the labor market is softer than the state overall. Home value year over year is -$10, essentially flat. Population growth data is not available, so migration-driven demand cannot be assessed from the provided data. Despite above-state incomes and rents, the overall score positions Memphis as weak.
Key Trends
First, price momentum has turned negative in the short term. The 12-month home value momentum is 1.99%, but the 3-month momentum is -0.90%, and the year-over-year home value change is -$10. This shows recent cooling after a modest annual gain.
Second, supply and time on market indicate soft buyer demand. There are 5,451 homes for sale, the median days on market is 68, and 25.3% of listings have had a price cut. More than one in four listings has reduced price, suggesting sellers are competing for buyers.
Third, rents are strong compared with the state. The rent index of $1,400 is well above the state average of $947, while the median home value is only modestly above the state average. That gap may support rental property owners and points to notable tenant demand or limited rental supply.
Fourth, the economic picture is uneven. Unemployment at 4.7% is above the state average of 4.0%, even though median household income of $66,401 is above the state average of $60,773. Higher income levels may not fully offset the softer labor market.
Who Is This Market For
This market may suit patient buyers and long-term rental investors more than short-term flippers or sellers needing a quick sale. First-time buyers could benefit from the 25.3% of listings with price cuts and the 68-day median time on market, which provide more room to negotiate. The median home value of $244,737 is above the state average, but the median household income of $66,401 is also above the state average, so some local buyers may have the income to buy. Still, negative 3-month momentum and the weak overall score mean buyers should not expect rapid appreciation.
Rental-focused investors may find the rent index of $1,400 notable because it is well above the state average of $947. That rent level relative to the median home value can support buy-and-hold strategies, especially with discounted listings. However, short-term resale looks less attractive given the high share of price cuts and 68 days on market. Move-up buyers may face a slower sale of their current home but may also encounter less competition when buying. Population growth is unavailable, so migration cannot be used to support demand assumptions.
Outlook
The near-term outlook remains soft based on the data. The 3-month home value momentum of -0.90% and the essentially flat year-over-year change of -$10 suggest prices are stalling recently. With 5,451 homes for sale, a median of 68 days on market, and 25.3% of listings with a price cut, conditions are likely to remain buyer-friendly in the near term. The rent index of $1,400 is a bright spot compared with the state average of $947 and may keep rental demand stable, but unemployment of 4.7% remains above the state average of 4.0% and could limit qualified buyers. Because population growth data is missing, no demographic catalyst can be assumed. Overall, the PropertyIQ Score of 13/100 supports a cautious outlook until price momentum improves or listing conditions tighten.
AI-generated analysis based on current market data. Last updated September 30, 2026.
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Memphis, TN market data
Memphis, TN Housing Market Overview
Memphis, TN's median home value is $245K, up 2.0% over the past year. Homes here sell in a median 68 days. Its PropertyIQ Score of 13 sits below the state average of 50, marking a market positioned to lag its state over the next three years.
PropertyIQ tracks the Memphis, TN housing market through two complementary lenses: price momentum from Zillow home-value trends over 3 and 12 months, and demand pressure from how quickly homes sell and how often sellers cut prices, drawn from Realtor.com. The PropertyIQ Score distills these into one number that predicts how this TN market is set to perform against its state benchmark.
Southeastern markets benefit from manufacturing investment, logistics infrastructure, and relative affordability compared to national averages. The region's population growth — driven by both domestic migration and natural increase — supports sustained housing demand across metro and suburban areas. Within the Southeast, Memphis, TN's PropertyIQ Score of 13 runs below the Southeast norm.
Tennessee's no-income-tax status and central location have fueled Nashville's rise as a corporate relocation destination, while Memphis and Knoxville offer more affordable alternatives with their own economic drivers.
For the Memphis, TN market, PropertyIQ calculates a single score each month from four inputs: twelve-month Zillow home-value momentum, three-month Zillow home-value momentum, median days on market from Realtor.com, and the Realtor.com price-reduced share. The score is computed nationally across all metros and calibrated so 50 equals the state average. Across the validation history, metro markets in the top score band have outperformed their state by roughly 1.7 percentage points more per year than bottom-band markets. Momentum here has been positive, with home values up 2.0% over the past year.
View Memphis, TN's complete market profile including historical price trends, score history, and AI-generated analysis. Compare this market against any other US metro to find the best opportunities for your investment strategy.
Counties in the Memphis, TN metro area
ZIP codes in the Memphis, TN metro area
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Market data through August 2026. Sourced from Zillow, Realtor.com, Redfin, U.S. Census Bureau, FRED, BLS, and BEA. Per-statistic source and date shown above.
Frequently Asked Questions
Is Memphis, TN a good place to buy real estate in 2026?
PropertyIQ doesn't label markets simply good or bad. Instead, the PropertyIQ Score measures a market's demand momentum against its own state, where 50 marks the state average. Memphis, TN currently scores 13, a very weak-momentum reading that leaves it positioned to lag its state over the next three years. For buyers, cooling demand usually brings more inventory, longer sale times, and real leverage to negotiate on price. Backing that up, the median home value here is $245K, up 2.0% over the past year. So whether Memphis, TN is right for you comes down to your goals: a rising-momentum market can favor long-term appreciation but offers less room to negotiate, while a cooling one hands buyers more leverage. Treat the score as a timing signal to weigh alongside your budget, holding period, and plans for the property, not a verdict on the market's quality.
What is the PropertyIQ Score for Memphis, TN?
Memphis, TN's PropertyIQ Score is 13, indicating very weak momentum on a 1-to-99 scale. The score distills four transparent inputs into a single number: Zillow home-value momentum over the past 12 months, Zillow home-value momentum over the past 3 months, the median days homes spend on the market from Realtor.com, and the share of listings with a price cut, also from Realtor.com. Rising values and faster sales push the score up, while slow sales and frequent price cuts pull it down. The scale is calibrated so 50 equals the state average, meaning a score above 50 predicts the market will outperform its state over the next three years and a score below 50 predicts underperformance. PropertyIQ computes the score across every US market nationally, then recenters it against each state, so 13 places Memphis, TN below its state benchmark.
Are home prices in Memphis, TN rising or falling?
Home prices in Memphis, TN are rising. Over the past year, the median home value increased 2.0%, reaching $245K. Over the latest three months, values slipped 0.9%, a sign near-term demand is softening. PropertyIQ derives these figures from Zillow's home-value index, which tracks the typical value across the market rather than only the homes that happened to sell, giving a steadier read than a raw median sale price. Both the 12-month and 3-month momentum readings feed directly into the PropertyIQ Score, so this price trend is one of the core signals behind Memphis, TN's current score. Keep in mind that appreciation can vary widely by neighborhood and price tier across the metro area, so treat these figures as the market-wide baseline rather than a guarantee for any single property.
How quickly do homes sell in Memphis, TN?
In Memphis, TN, homes sell in a median of 68 days from listing to pending sale, based on Realtor.com market data. Median days on market is one of the clearest real-time reads on local demand: when homes move quickly, buyers are competing and sellers hold the advantage, while lengthening timelines signal cooling interest and more room to negotiate. Alongside sale speed, about 25% of active listings here have taken at least one price cut — a complementary demand gauge, since a rising share of reductions often precedes slower sales and softer prices. Both median days on market and the price-cut share feed directly into the PropertyIQ Score, where faster sales and fewer cuts push the score higher. As a general guide, medians under about 30 days indicate a brisk, competitive market, while medians well beyond 60 days point to buyers regaining leverage. Actual time on market still varies by price band, property type, and season, so treat the median as a market-wide baseline.
How current is this metro area data?
This Memphis, TN market data is refreshed on a monthly cycle, with the latest figures current through August 2026. PropertyIQ ingests fresh data every month from a range of authoritative sources: home values and rents from Zillow, days on market and price-cut activity from Realtor.com, additional housing signals from Redfin, demographic and housing-stock data from the U.S. Census Bureau, mortgage and macroeconomic series from FRED, and employment figures from the Bureau of Labor Statistics and the Bureau of Economic Analysis. The PropertyIQ Score itself is recomputed every month once the new source data lands, so the score and its four underlying inputs always reflect the most recent complete reporting period rather than a static snapshot. Because official housing data is typically released with a short lag, the current-through date usually trails the present by a few weeks, which is normal across the industry and not a sign the data is out of date.