Memphis, TN, January 7, 2026
The Memphis housing market has undergone significant changes, with declining home sales and rising property prices in 2025. Sales dropped by 14.8% year-over-year, yet the average sales price increased by 4.6%. The inventory has decreased, resulting in longer selling times, while the rental market shows stability despite challenges. Overall, the market reflects a complex mix of economic factors affecting buyers and sellers alike.
Memphis Housing Market Review for 2025
Memphis, TN, has seen significant changes in its housing market throughout 2025, characterized by fluctuations in sales, price shifts, and varied inventory levels. This overview highlights the essential developments that have impacted the local economy and its residents.
Sales and Pricing Trends
In 2025, Memphis experienced a decline in total home sales compared to the previous year. By November, sales decreased by 14.8% year-over-year, with a total of 983 homes sold. This overall downward trend was evident throughout the year, as January, February, and March also reported declines in sales compared to the same months in 2024. Despite the decrease in sales volume, the average sales price demonstrated resilience, posting a 4.6% increase in November, reaching $272,414. This pattern of rising property values was also evident in previous months, signifying a stable appreciation in property prices.
Inventory and Market Conditions
In evaluating inventory levels, November recorded 4,462 homes listed for sale, reflecting a 4.1% decline from the previous year. This reduction has contributed to a median list price of $335,000, down from $345,000 in 2024. The market has witnessed an increase in average selling times, with homes averaging 84 days on the market, which has provided buyers with more negotiating power during purchases.
Rental Market Dynamics
The rental market also faced challenges in 2025. The average rent experienced slight stability, with a 0.3% increase year-over-year during the second quarter, settling at $1,168. However, occupancy rates of 87.2% fell below the national average, exposing a surplus of rental properties. Although a significant number of new rental units were delivered, the demand did not keep pace, resulting in higher vacancy rates for landlords.
Construction and Development
New construction activity met slow growth in 2025. The total number of new housing units completed was lower than in previous years, further tightening inventory levels. Factors contributing to this slowdown included high land costs, ongoing labor shortages, and increasing construction financing rates. These elements posed challenges for potential developers, impacting future inventory availability while emphasizing the necessity for innovative solutions to spur growth in this sector.
Conclusion
In conclusion, the Memphis housing market in 2025 experienced a combination of declining sales, rising prices, and limited inventory—a reflection of a complex landscape influenced by various economic factors. As local entrepreneurs and builders adapt to this environment, it remains crucial for community members to continue supporting local businesses and staying engaged in the dynamics of Memphis’s evolving economy.
Frequently Asked Questions (FAQ)
What was the trend in home sales in Memphis during 2025?
Throughout 2025, Memphis saw a decline in total home sales compared to the previous year. In November, sales decreased by 14.8% year-over-year, with 983 homes sold. This downward trend was consistent across other months, with January, February, and March also reporting declines in sales compared to the same months in 2024.
How did property prices change in Memphis in 2025?
Despite the drop in sales volume, the average sales price showed an upward trajectory. In November, the average price rose by 4.6% to $272,414, and similar increases were observed in earlier months, indicating a steady rise in property values.
What were the rental market conditions in Memphis in 2025?
The rental market in Memphis faced challenges in 2025. The average rent remained relatively stable, with a slight increase of 0.3% year-over-year in the second quarter, reaching $1,168. Occupancy rates stood at 87.2%, below the national average, indicating a surplus of rental properties. Despite the high number of new units delivered, demand did not keep pace, leading to increased vacancies.
What factors influenced the construction activity in Memphis in 2025?
New construction activity in Memphis experienced a slowdown in 2025. The number of new housing units completed was lower than in previous years, contributing to the tight inventory. Factors such as high land costs, labor shortages, and rising construction financing rates impacted the pace of development.
What was the overall market condition in Memphis in 2025?
In summary, the Memphis housing market in 2025 was characterized by declining sales, rising prices, and limited inventory. These trends reflect a complex market influenced by various economic factors, affecting both buyers and sellers in the region.
Key Features of the Memphis Housing Market in 2025
| Feature | Details |
|---|---|
| Sales Volume | Declined by 14.8% year-over-year in November, with 983 homes sold. |
| Average Sales Price | Increased by 4.6% to $272,414 in November. |
| Inventory Levels | 4,462 homes listed for sale in November, a 4.1% decrease from the previous year. |
| Median List Price | Settled at $335,000, down from $345,000 in 2024. |
| Rental Market | Average rent remained stable with a slight increase of 0.3% year-over-year in Q2, reaching $1,168. Occupancy rates stood at 87.2%, below the national average. |
| Construction Activity | Experienced a slowdown due to high land costs, labor shortages, and rising construction financing rates. |
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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 area—with 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.
