Memphis...oversaturated with investors or just the beginning?

[Drake Holt]

Memphis seems flooded with both local, and out of state money, even international. The question is, is Memphis oversaturated? or is this just the beginning? 

[Chris Clothier]

Originally posted by @Drake Holt:

Memphis seems flooded with both local, and out of state money, even international. The question is, is Memphis oversaturated? or is this just the beginning? 

The answer is neither.  It is easy to see statistical data and get skewed into thinking one way or the other. After buying, renovating, leasing and selling here for over two decades, I can tell you that we are in a normal demand market, but with extremely limited inventories.  

Population and job growth remain stable and there continue to be over $1 billion in development projects (jobs) on the books post pandemic.  A major development has been the hotel building boom which was a necessary requirement for convention tourism to return in force to the city.  With the incredible facelift that the convention center received, I fully expect a boost in employment within the service industries and that will be city wide.  As for housing, the reality is that a vast majority of single-family homes continue to be owner occupied and many sales are occurring today investor to investor and many investor to institution.  So, we are not seeing massive growth in the percentages of single-family homes that are investor owned compared to the past decade.  

Memphis remains an attractive and sought after market by investors because of it's longevity and reliability.  The pricing is definitely higher due to more demand, but rent growth has occurred as the job market has stabilized and grown.  There is plenty of runway left for investors especially around the median price point for the market.