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, TN has a PropertyIQ Score of 13 out of 100, positioning it as a weak market relative to typical conditions. The score is driven by a 12-month home value momentum of 2.39%, a 3-month home value momentum of -1.04%, a median days on market of 66 days, and a 24.2% share of listings with a price cut. The median home value of $246,065 is above the Tennessee average of $225,822, and median household income of $64,743 is above the state average of $58,773. However, the unemployment rate of 4.8% is higher than the state average of 4.1%, and homes for sale total 5,410. Population growth data is not available.
The rental market is a notable exception to the weak sales picture. The rent index of $1,422 is well above the state average of $914. Even with a year-over-year home value change of -$12, which is essentially flat but slightly negative, rents remain comparatively strong. This creates a mixed profile: a soft for-sale market with above-state home values and incomes, but also a rent index that suggests meaningful rental demand. Overall, the low PropertyIQ Score and recent price momentum indicate a cooling market, while rent levels and incomes provide some support relative to state benchmarks.
Key Trends
The first trend is cooling home price momentum. The 12-month home value momentum of 2.39% shows modest annual growth, but the 3-month momentum of -1.04% indicates a recent downward shift. A year-over-year home value change of -$12 reinforces that price growth has stalled, even though the median home value of $246,065 remains above the state average of $225,822.
The second trend is softer selling conditions. Median days on market is 66 days, and 24.2% of listings have had a price cut. With 5,410 homes for sale, these figures point to a market where buyers have more time and sellers are more likely to adjust prices. This is consistent with the low PropertyIQ Score of 13 out of 100.
The third trend is rental market strength. The rent index of $1,422 is $508 above the state average of $914, a substantial gap. This indicates that rents in Memphis are much higher than the Tennessee norm, which may support rental property investment even as home price momentum is weak.
The fourth trend is mixed affordability and labor signals. Median household income of $64,743 exceeds the state average of $58,773, but unemployment of 4.8% is above the state average of 4.1%. Population growth is not available, so demographic-driven demand cannot be assessed.
Who Is This Market For
Given the weak PropertyIQ Score of 13 out of 100, this market is better suited to patient buyers and cash-flow-oriented investors than to sellers seeking quick price appreciation. Buy-and-hold investors may find the rent index of $1,422 attractive relative to the state average of $914, particularly with a median home value of $246,065. The strong rent index suggests rental income could be a meaningful return, though the negative 3-month home value momentum of -1.04% means short-term appreciation is not supported by the data. First-time buyers may benefit from the 24.2% share of listings with a price cut and a median days on market of 66, which give them more negotiation time. However, with a median home value above the state average, they should weigh local income of $64,743 and the higher unemployment rate of 4.8%. Move-up buyers may struggle to sell existing homes efficiently in this slower environment, so this segment is less aligned with current conditions.
Outlook
The near-term outlook is cautious. The 3-month home value momentum of -1.04%, combined with a 24.2% price-cut share and 66 median days on market, suggests continuing softness in the for-sale market. The year-over-year home value change of -$12 is essentially flat, so the data does not indicate sharp declines, but it also does not support near-term appreciation. The 12-month momentum of 2.39% remains positive, suggesting the cooling has not erased all annual growth. The rent index of $1,422 remains significantly above the state average of $914, which may continue to support rental demand. The unemployment rate of 4.8% versus the state average of 4.1% is a potential headwind. Population growth data is not available, so the long-term demand picture cannot be determined from the provided metrics. Overall, the numbers point to continued soft home price momentum with relative strength in the rental market.
AI-generated analysis based on current market data. Last updated September 7, 2026.
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Memphis, TN market data
Memphis, TN Housing Market Overview
Memphis, TN's median home value is $246K, up 2.4% over the past year. Homes here sell in a median 66 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 2.4% 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 July 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 $246K, up 2.4% 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 2.4%, reaching $246K. Over the latest three months, values slipped 1.0%, 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 66 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 24% 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 July 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.