Inexpensive houses for sale is not the only reason to invest in Memphis real estate. There are some metro areas across the country where you can purchase houses for less. You need the combination of inexpensive houses along with the strong potential for appreciation and long-term growth that Memphis brings to the table.
Memphis – Some Important Numbers
There are many reasons other than house prices to select a particular area to invest in. For instance, for at least the past five years, the Memphis area population has been growing and is forecast to add another 40,000 people by 2020. Where the population is growing so is the need for additional housing.
Being able to afford housing requires employment. Just like most of the country, Memphis was hit hard by the recession, losing 42,392 jobs. The good news is that in 2016 Memphis saw its lowest unemployment rate in almost 10 years. Last November, the unemployment rate stood at 5 percent. Better yet, Memphis is expected to continue adding jobs over the next several years. For a major metropolitan area, Memphis is considered to have a low cost of doing business that continues attracting more major employers to the area. Other desirable factors include warm southern weather and no state income tax.
Improving Memphis to Attract Businesses and People
Another important element considered when investing is the state of the local infrastructure. In contrast, Detroit is a scary place for investing since current efforts are to tear down dozens of blocks of blight housing with no clear plan for how it will be rebuilt. Memphis, on the other hand, has many current projects going to continue improving the downtown core to attract both businesses and people.
Memphis has completed a $15 million federal grant helping finance the $30 million project to upgrade the Harahan Bridge that brings pedestrian and cyclist traffic into the city from across the Mississippi river (also a great tourist attraction). The city is working with developers on a $20 million plan to resurrect a 100 year old, block size building in downtown by converting it into a 165 unit apartment building. There is an on-going $1.5 billion boom of multiple large-scale medical centers in downtown Memphis.
Among completed projects is the Beale Street Landing that is now open to riverboat traffic. Other completed projects include installation of electric charging stations in publically owned parking garages. Other parking garage improvements included improved lighting and upgrades to surveillance cameras to make the downtown garages safer. These are only a few of the many on-going improvement projects.
Still, many other projects are in work or in the planning stages. These include everything from hundred million dollar projects to small business infrastructure improvement and growth.
The low cost of residential housing in Memphis is a definite attraction for investors. Memphis’s growing economy and investment in infrastructure only adds to the reasons investors are heading to Memphis.
Please leave a comment if this article was helpful or if you have a question.
Author bio: Brian Kline has been investing in real estate for more than 35 years and writing about real estate investing for 10 years. He also draws upon 30 plus years of business experience including 12 years as a manager at Boeing Aircraft Company. Brian currently lives at Lake Cushman, Washington. A vacation destination, a few short miles from a national forest. With the Pacific Ocean a couple of miles in the opposite direction.