Memphis, October 21, 2025
News Summary
Shelby County and the Alliance for Housing Progress are introducing the Emerging Developers Academy to address the affordable housing shortage in Memphis. This program will support 20 local developers starting in November, while new luxury homes priced around $240,000 are being developed in Soulsville. Despite these efforts, challenges persist with limited construction permits, highlighting the ongoing need for affordable housing solutions in the region.
Memphis
A new initiative by Shelby County and the Alliance for Housing Progress aims to tackle the affordable housing shortage in Memphis. This initiative, the Emerging Developers Academy, will assist 20 local developers in creating affordable housing starting in November, addressing a vital need in the community.
In addition to this program, new affordable luxury homes are being developed in Soulsville, South Memphis, by The Compass Circle, led by developer Casey Cooper. The new homes on Shaw Place are priced around $240,000 and are customizable, providing potential homeowners with options to tailor their living spaces.
Despite these efforts, the housing landscape shows challenges. From May 1, 2024, to May 1, 2025, only 11 new home construction permits have been filed in the 38126 zip code. Though Casey Cooper has made progress by completing three homes and having another under construction, the overall pace of development remains slow.
Ashley Cash, Director of Housing and Community Development for the City of Memphis, is actively working to attract more builders to meet the rising demand for affordable housing. With a median income in Memphis reportedly over $51,000, potential homebuyers face hurdles as a household income of at least $91,000 is necessary to purchase a home in the Greater Memphis area. Cashโs office is specifically targeting middle-income future homebuyers with an income range of $48,000 to $60,000.
Building new homes can incur additional costs of $20,000 to $40,000 due to infrastructure issues linked to the cityโs aging systems, further impacting the affordability of new builds. In response, the City of Memphis launched a “Middle Income Housing” Program in October with a budget of $1 million to assist with infrastructure costs. This program has already funded two mixed-use projects, creating a total of 47 units in the Medical District.
Since 2021, Memphis has successfully assisted 87 households with down payment assistance, including dedicated programs for teachers, police, and firefighters, enhancing access to homeownership for key community members. Cooper also emphasizes the importance of comprehensive community services, including grocery stores and safer infrastructure, which should accompany housing investments for sustained improvement.
In contrast to Memphis’s housing challenges, nearby Millington experiences significant growth, with 5 to 7 new building permits filed weekly. The new homes developed by Cooper in Soulsville will range from 1,540 to 1,600 square feet, featuring 3 to 4 bedrooms and 2 bathrooms. Four of the 11 homes are expected to be available for purchase within 120 days, bringing hope to prospective buyers.
Community leaders believe that these new housing developments can lead to significant economic impacts, including increased property taxes and community revitalization, reinforcing the push for more affordable housing solutions in Memphis.
FAQs
What is the Emerging Developers Academy?
The Emerging Developers Academy will assist 20 local developers in creating affordable housing starting in November.
Where are the new affordable homes being developed?
The new affordable luxury homes are being developed in Soulsville, South Memphis.
What is the price and size of the new homes?
The new homes on Shaw Place are priced around $240,000 and will be between 1,540 to 1,600 square feet, with 3 to 4 bedrooms and 2 bathrooms.
How many new construction permits have been filed recently?
Only 11 new home construction permits have been filed in the 38126 zip code from May 1, 2024, to May 1, 2025.
What income level is needed to purchase a home in the Greater Memphis area?
A household income of at least $91,000 is necessary to purchase a home in the Greater Memphis area.
Key Features
| Feature | Details |
|---|---|
| Initiative | Shelby County and the Alliance for Housing Progress launching the Emerging Developers Academy. |
| Affordable Homes | New homes priced around $240,000 developed by The Compass Circle in Soulsville. |
| Construction Permits | Only 11 new home construction permits filed in the 38126 zip code recently. |
| Income Requirement | At least $91,000 annual income needed to purchase a home in Greater Memphis. |
| Developer | Casey Cooper has completed three homes with another under construction. |
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Additional Resources
- Daily Memphian: Emerging Developers Academy
- Local Memphis: Soulsville Community Revitalized
- MLK50: Memphis Housing Needs
- Fox13 Memphis: New Program for Affordable Housing
- Encyclopedia Britannica: Affordable Housing
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.
