Rental Market Trends in Memphis, TN – 2025 Update

Current average rent: Reports that as of early September 2025, the average rent across all property types in Memphis is around $1,300, unchanged year-over-year but down $38 from the previous month.
Apartment breakdown:(September 2025) lists rent averages of:
- Studio: ~$940
- One-bedroom: ~$1,036
- Two-bedroom: ~$1,082
- Three-bedroom: ~$1,287
These reflect a very modest 0.1% annual increase, equivalent to about $1 more per month.

Strong rental demand & low vacancies: Meridian Property Management reports a 3.5% vacancy rate in Memphis—well below the national average (~5.2%)—highlighting a tight but stable rental market.
Investor momentum: Mega investors now account for a growing portion of home purchases. Between January and June 2025, investor activity represented about 29–32% of single-family home buys, with Memphis emerging as a hotspot due to its affordability and strong rental income potential.

Shrinking new supply: Multifamily housing starts dropped dramatically—down over 60% in 2024, with only about 1,050 completions projected in 2025 (a 36% decline). This trend suggests a tightening of rental inventory levels.
Stabilizing but modest rent growth expected: MMG Real Estate Advisors forecasts rent growth of around 2.4% by year-end 2025, driven by reduced supply and continued tenant demand.
National trends affecting local market: Reports signal that the rental market is shifting toward a landlord-friendly environment as apartment construction slows nationwide and renter demand remains high. Tariffs on building materials could further constrain supply and contribute to upward pressure on rents in markets like Memphis

4. How Memphis Compares Regionally

Relative affordability: Despite ongoing growth, Memphis rents remain significantly below national averages. Zillow indicates Memphis rents are roughly 38% lower than the U.S. average (national ~ $2,100 vs. Memphis ~$1,300).
Metro versus national context: Some sites confirm this affordability—with local rents around $1,036 compared to the national $1,640 average—making Memphis a budget-friendly option.

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