Memphis, September 28, 2025
News Summary
Despite rising housing construction costs, Memphis is recognized as the most affordable major city in Tennessee. With a median home value significantly lower than other cities and a low required income for home affordability, Memphis stands out as an economic beacon. Recent trends indicate a decline in home sales, but median prices remain manageable for residents, highlighting the city’s unique position amidst the challenges faced by the housing market.
Memphis is currently recognized as the most affordable major city in Tennessee, despite the rising costs of housing construction. During a recent press conference, John Zeanah, the City of Memphisโ chief of infrastructure and development, highlighted the significant increase in construction costs that could complicate accessibility to housing in the future. According to an analysis by MarketWatch, which utilized data from Zillow, the U.S. Census Bureau, and Freddie Mac, Memphis stands out as a beacon of affordability within the state.
As of April 30, Zillow reported the typical U.S. home value at $357,711, which requires an annual income of $87,090 for a household to remain within the affordability threshold of 33% of its income. However, the national median household income reported by the U.S. Census Bureau for 2023 is only $77,719, indicating that households earning this amount would allocate around 37% of their earnings to housing.
In stark contrast, households in Memphis require an income of just $46,610 to afford a home with a 20% down payment. The median home value in Memphis stands at $151,564, leading to annual housing costs of $15,381, which is approximately 30% of the cityโs median income of $51,399. This places Memphis as the only major Tennessee city where the median income surpasses the income required to afford a home.
Other Tennessee cities exhibit stark disparities when compared to Memphis. In Clarksville, the median home value is $326,319, necessitating an income of $80,275, which eats up 39% of the cityโs median income of $67,246. Meanwhile, Chattanoogaโs median home value is $327,006, and residents must earn $79,843, taking 42% of the median income of $62,547. Nashville presents an even more alarming scenario; its median home value is $488,899, requiring an income of $105,672 while the median income sits at only $80,217, consuming about 43% of the earnings.
Knoxville showcases the largest discrepancy, where the median household income is $51,183 but the necessary income to afford a typical home valued at $361,367 is $84,016, consuming 55% of the local median income. Alarmingly, nationwide statistics indicate that only 18 out of the largest 150 cities have home prices and median incomes that allow for affordable ownership, with Memphis being the sole entry from Tennessee.
Current trends in the Memphis housing market show a 7.0% year-over-year decline in home sales as of January 2025, which resulted in a total of 1,161 homes sold. Despite the drop in sales, average home prices in Memphis have continued to rise, currently estimated at approximately $190,000. The inventory available for sale has seen an improvement, with about 3,511 units listed in January 2025, while the average Days on Market (DOM) for homes was recorded at 58 days, which reflects a 16% increase from the previous month. Moreover, the median home price in Memphis is considerably lower than the national median home price of $407,500.
Historically, Memphis home values have appreciated by 110.69% over the past decade, and recent trends suggest a steady but moderate growth in the market forecast for 2025. City officials are currently holding community meetings to tackle the housing shortage issues, a problem exacerbated by outdated zoning regulations. The housing market is grappling with increased construction and real estate costs, and Tennessee as a whole has seen an average rise of 122.6% in home prices over the last decade. While the median home price in Memphis currently stands at approximately $149,755โa reflection of over a 113% increase in the last 10 yearsโit remains the most affordable major city in context to Tennessee.
FAQ
What is the current median home value in Memphis?
How much income is needed to afford a home in Memphis?
What is the median income in Memphis?
What is the national median household income for 2023?
Key Features of the Memphis Housing Market
| Feature | Value |
|---|---|
| Median Home Value | $151,564 |
| Income Required for Home Affordability | $46,610 |
| Median Income | $51,399 |
| Annual Housing Cost | $15,381 |
| National Median Household Income (2023) | $77,719 |
| Year-Over-Year Home Sales Decline | 7.0% |
| Average Home Price | $190,000 |
| Days on Market (January 2025) | 58 days |
| Inventory (January 2025) | 3,511 units |
Deeper Dive: News & Info About This Topic
HERE Resources
City of Memphis Addresses Growing Housing Crisis
Habitat for Humanity Begins New Affordable Housing Project in Memphis
Financial Crisis Faces Memphis-Shelby County Schools
Habitat for Humanity Breaks Ground in Uptown Memphis
Memphis City Council to Reconsider Blight-Remediation Ordinance
Memphis-Shelby County Schools Faces Teacher Shortage Ahead of School Year
Memphis Residents Prepare for Weekend Thunderstorms
Mid-South Fair Returns featuring Diverse Entertainment
Shelby County Commission Proposes New Jail Facility in North Memphis
Memphis Housing Initiative Sees Progress with New Affordable Homes
Additional Resources
- Commercial Appeal: Memphis Housing Affordability
- Wikipedia: Housing in the United States
- Norada Real Estate: Invest in Memphis
- Kiplinger: Cheapest Cities to Live
- We Are Memphis: Entry-Level Jobs
Author: STAFF HERE MEMPHIS WRITER
The MEMPHIS STAFF WRITER represents the experienced team at HEREMemphis.com, your go-to source for actionable local news and information in Memphis, Shelby County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the areaโwith deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Beale Street Music Festival, Elvis Week, and Memphis in May International Festival. Our coverage extends to key organizations like the Greater Memphis Chamber and the Memphis Convention & Visitors Bureau, plus leading businesses in logistics, healthcare, and music that power the local economy such as FedEx, St. Jude Children's Research Hospital, and AutoZone. As part of the broader HERE network, including HEREBristol.com, HEREChattanooga.com, HEREKnoxville.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
