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Despite very early predictions, the Memphis property investment scene has been very robust. Real estate in general hasn’t been greatly affected by the pandemic, and people are eager to pick up stakes and find their next home. Memphis has always been a prime market for property investment, and 2021 promises to be one of the best years yet. But if that isn’t enough of a reason to start investing, here are a few more.
There are a few key considerations to make when you begin investing in properties in any city, not just Memphis.
Memphis has always been a hotspot for property investors. There are several reasons you’d want to choose Memphis as a starting point when it comes to picking your first project. Let’s take a closer look at the fine print.
Memphis sits currently at around 1.4 million people. While that might sound like a lot, Memphis is still only the 42nd largest city in the U.S. Furthermore, Memphis’s population is also fairly young. The median age is a millennial-friendly 36 years old. That’s younger than most cities and than the national average. Luckily, millennials are the ones doing a huge majority of the moving and renting, making Memphis one of the best choices for putting down roots.
Furthermore, Memphis is growing steadily at a rate of around .26% a year. That’s a healthy number with room to...well...grow!
From an economic standpoint, Memphis is booming. The average household income in Memphis is just under $55,000 a year. Several large companies call Memphis home such as FedEx, Autozone, and more. Especially within the last few years, Memphis has seen a variety of new businesses and agencies choose the city as their home base, creating a surge of new jobs, and prompting young families to look for rentals in the greater metro area. Furthermore, thanks to technology and medical-based industries like St. Jude Children’s Hospital, Memphis has become a thriving center for high-demand jobs.
Currently, fewer homes are being built in Memphis than in other cities. Because of the rising cost of land development and a shortage of qualified builders, a greater number of people are looking towards rentals for affordable housing. The real estate market in Memphis is also doing really well, with the cost of housing steadily trending upwards. When a property is on the market, it tends to last less than 2 months before a home buyer or an investor snaps it up. When you see a good deal, it’s wise to make preparations and be ready to move on it.
As we’ve mentioned, more people are looking for rentals as their long-term housing option. Due to the aggressive housing market, Memphis continues to be a very strong choice for property investors. Renting is appealing to a lot of young professionals who may be feeling the city out, or to those who don’t have the disposable income to support a full mortgage. Additionally, many families move frequently and enjoy the flexibility of renting a home instead of committing to something more permanent. The average cost of rent in Memphis falls just short of $900 a month, making it very appealing in comparison to some other major cities in the country.
When you’re starting your property investment journey, it’s important to pick a company you trust to help guide you through the process. We’ve helped many clients buy and renovate properties, generating what amounts to basically passive income. For more tips on how to get started, check out our other helpful resources. We’re always available to answer your questions and field concerns. Reach out today and learn how we can help.