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Memphis, TN

2025 Q2 Multifamily Market Overview

 

In this report:

Memphis is Tennessee’s 2nd-largest metro area, with an MSA population of 1,339,345. The MSA spans 9 counties across West Tennessee, eastern Arkansas, and northwest Mississippi. Some of the MSA’s more prominent employers include the FedEx headquarters (32,333 jobs), St. Jude’s Children’s Research Hospital, International Paper HQ, Autozone HQ, and Smith & Nephew’s U.S. HQ. The University of Memphis is the area’s largest university (20,276 enrollment), while Rhodes College (1,800 students) and Christian Brothers University (1,204 students) round out higher education. Memphis is home to the Memphis Grizzlies (NBA), Memphis International Airport (#2 Top Cargo Airports worldwide), and some of the top suburbs in the state (Germantown & Collierville). The apartment market consists of 540 apartment communities of 50+ units, comprising 109,056 units.

Memphis Economy

The Memphis MSA boasts a diverse and dynamic economy, underpinned by key sectors such as logistics, healthcare, and manufacturing. The region recently achieved a significant milestone with a Gross Regional Product (GRP) of $102.9 billion and record employment levels of 656,600 jobs, reflecting a 5% average annual growth over the past five years.

Major Industries

Logistics & Transportation: Memphis is a pivotal logistics hub, home to FedEx’s global headquarters and its superhub at Memphis International Airport—the busiest cargo airport in the U.S. and 2nd-largest in the world. The city also ranks as the third-largest trucking corridor and fifth-largest inland port in the nation.

Healthcare: Healthcare plays a vital role in the local economy, accounting for one in nine jobs. The region houses 19 hospitals with over 4,100 beds, including the renowned St. Jude Children’s Research Hospital and the University of Tennessee Health Science Center. Methodist Le Bonheur Healthcare, Baptist Memorial Healthcare, Saint Francis Healthcare, and Regional One Health also anchor the healthcare sector.

Manufacturing & Corporate Presence: Memphis hosts several Fortune 500 and 1000 companies, such as International Paper and AutoZone. Additionally, companies like Nike, Sharp, and Hewlett Packard operate significant distribution centers in the area.

Overall, Memphis’s strategic location, diversified economic base, and strong industry presence position it as a key economic center in the Mid-South.

Population Analysis

 

Memphis MSA Population

The Memphis MSA had a 2024 population of 1,339,345, with the vast majority of the population coming from Shelby County, TN (910,530).  Fayette County, located east of Memphis, has grown 6.24% from 2020-2024, making it the fastest-growing county in the MSA.

Demographics

Total Population (MSA)
1,339,345
Unemployment Rate (February 2025)
4.4%
#2
Largest MSA in TN (U.S. Census Bureau)
#3
Places Where $100,000 Goes Furthest (SmartAsset)
Top 150
Best Places to Live (U.S. News & World Report)

Multifamily Highlights

Apartment Market Overview:

540
Apartment Communities (50+ units)
109,056
Total Units (50+ units)
$1,176
Avg. Asking Rent
0.7%
Rent Growth (Previous 12 Months)
85.9%
Occupancy

12-Month Sales:

$334M
12-month Sales Volume ($)
4,441
12-month Sales (Units)
25
12-month Sales (# of transactions)

Development Pipeline:

11
Properties
2,658
Units

Memphis Multifamily Analysis

 

The Memphis MSA has 540 apartments of over 50+ units, for a total of 109,056 units. 2,347 units were delivered in the last 12 months (CoStar), with roughly 1,300 units projected to come online in 2025. Vacancy has stayed relatively constant over the last several years (currently sitting at 14.10%) but is anticipated to tighten over the next several years down to 12.20%. The Average Rent in Memphis is $1,176 with a 12-Month rent growth of 0.7% (CoStar). Based on an analysis of multifamily properties in Memphis, Average Expenses are $5,832 per unit (TKC’s Expense Averager Tool).

 

 

Economic Development

Memphis is experiencing a significant economic resurgence in 2025, driven by substantial investments, job creation, and transformative development projects across various sectors:

Advanced Manufacturing & Technology

  • xAI’s Expansion: Elon Musk’s artificial intelligence company, xAI, is expanding its footprint in Memphis with the acquisition of a one-million-square-foot property in Southwest Memphis. This development builds upon the company’s earlier announcement to expand its “Colossus” supercomputer facility, positioning Memphis as a burgeoning tech hub.

  • AAON’s Investment: AAON Inc., a leader in energy-efficient HVAC solutions, has announced a $238 million investment in a new 787,000-square-foot facility in Memphis. This project is expected to create approximately 800 jobs over the next few years.

Workforce & Economic Growth

  • Job Creation: The Greater Memphis region is projected to add over 10,000 new jobs across all industries by 2025, with significant growth anticipated in transportation, warehousing, healthcare, and manufacturing sectors.

  • Gross Regional Product Milestone: For the first time ever, Memphis’s Gross Regional Product surpassed $100 billion, reaching $102.9 billion, marking a 5.8% year-over-year growth.​

Infrastructure & Development Projects

  • BlueOval City: Ford’s $5.6 billion BlueOval City, located approximately 50 miles northeast of Memphis, is set to begin production in 2025. The facility is expected to employ 5,800 workers and produce up to 500,000 electric vehicles annually.

  • Brooks Museum Relocation: The Memphis Art Museum is relocating downtown with a $180 million project, including a $12.5 million contribution from the State of Tennessee. The new facility is projected to generate an annual economic impact of over $26 million and create 216 direct and indirect jobs.

Strategic Initiatives & Recognitions

  • Digital Delta Initiative: The Greater Memphis Chamber launched a Regional Site Search Tool as part of its MEMready program, enhancing the region’s appeal to potential investors and solidifying its position as a premier technology destination.

  • CiCi Award: The Chamber received the 2025 Community Impact (CiCi) Award for successfully attracting AAON Inc. to Memphis, highlighting the significant economic and community benefits of the investment.

Memphis’s strategic investments and initiatives underscore its commitment to economic growth, workforce development, and establishing itself as a leader in advanced manufacturing and technology sectors.

 

Major Employers

  1. FedEx HQ

    32,333 jobs  | Learn More

  2. Methodist Le Bonheur Healthcare

    11,815 jobs / 1,714 beds  | Learn More

  3. Baptist Memorial Healthcare

    9,956 jobs / 706 beds  | Learn More

  4. NSA Mid-South (Millington)

    7,500 jobs  | Learn More

  5. St. Jude's Children's Research Hospital

    6,167 jobs / 77 beds  | Learn More

  6. Nike

    6,000 jobs  | Learn More

  7. Walmart (Incl. Fulfillment Center)

    5,300 jobs  | Learn More

  8. Kroger (Incl. Divisional Office)

    4,820 jobs  | Learn More

  9. Amazon

    4,000 jobs  | Learn More

  10. Saint Francis Healthcare

    4,000 jobs / 675 beds  | Learn More

  11. DHL Supply Chain

    3,066 jobs  | Learn More

  12. UT Health Science Center

    2,900 jobs  | Learn More

  13. Lt. Col. Luke Weathers Jr. VA Medical Center

    2,799 jobs / 196 beds  | Learn More

  14. Regional One Health

    2,791 jobs / 328 beds  | Learn More

  15. University of Memphis

    2,503 jobs / 20,276 students  | Learn More

  16. International Paper HQ

    2,500 jobs  | Learn More

  17. Memphis Light, Gas & Water (MLGW)

    2,426 jobs  | Learn More

  18. Autozone HQ

    2,300 jobs  | Learn More

  19. Smith & Nephew (U.S. HQ)

    2,300 jobs  | Learn More

Other Demand Drivers

  1. FedExForum

    Memphis Grizzlies & UofM Basketball; capacity of 18,400  | Learn More

  2. Wolfchase Galleria

    1,152,000SF; Macy's, JCPenney, Dillard's  | Learn More

  3. Memphis International Airport

    #2 Top Cargo Airports Worldwide; 4.9M passengers in 2024  | Learn More

  4. Germantown & Collierville

    Top 10 Schools & Richest Cities (TN)  | Learn More

  5. Rhodes College

    1,800 students  | Learn More

  6. Christian Brothers University

    1,204 students  | Learn More

  7. Graceland

    Most Popular Museum in the U.S.  | Learn More

  8. National Civil Rights Museum

    Average annual attendance of over 150,000  | Learn More

Our Deal Team

Nick Nail III
Memphis | MS | AR
Nick Nail III
Memphis | MS | AR
Phone: (901) 251-2000

Nick is originally from Senatobia, MS and attended Christian Brothers University where he studied Accounting. He has been a Broker with TKC since 2016 and loves getting to see the growth over economically diverse markets and the challenges that accompany being a Broker.

Will Beasley
Memphis | MS | AR
Will Beasley
Memphis | MS | AR
Phone: 615-428-5064

Will is from Nashville, TN and attended the University of Mississippi. He loves being able to connect and build relationships with clients on both the buyer or seller side.

Val Smith
Memphis | MS | AR
Val Smith
Memphis | MS | AR
Phone: 901-552-6181

Val grew up in Memphis, TN and attended the University of Alabama where he studied Political Science and History. Val has been interested in real estate from a young age due to his family’s background in the industry, and has loved building his career with TKC.

Sources & Comments

1. The Memphis, TN-MS-AR Metropolitan Statistical Area consists of 9 counties across 3 states: (1) Crittenden, AR (2) Benton, MS (3) DeSoto, MS (4) Marshall, MS (5) Tate, MS (6) Tunica, MS (7) Fayette, TN (8) Shelby, TN (9) Tipton, TN

2. Primary Sources: (1) https://fred.stlouisfed.org/ (2) CoStar (3) MSCI Real Capital Analytics

3. Sales Comps are from 04/28/24 – 04/28/25

4. This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty, or guarantee, expressed or implied as to its accuracy

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