Why Invest In Memphis?
Investment
Friday, April 24, 2015
Rebecca Smith

Memphis was named the “most profitable place in the USA to buy and rent out a single family home” by RealtyTrac in April 2013.

Since then it has featured regularly as one of the top cities for property investors.

What’s more, Demand Institute’s “Tale of 2000 Cities Report” predicted the median property price will rise 33% by 2018. (2/26/14)

Of course, Memphis is probably most famous for being the home of Elvis Presley. His Graceland mansion still attracts over 600,000 visitors every year. This makes it the 2nd most visited house in the United States (behind only The White House). 

The Basics

Memphis is the largest city in the state of Tennessee with a population of 680,768. (Source: U.S. Census Bureau)

The Memphis metropolitan area covers 10 counties in 3 states - Tennessee, Mississippi and Arkansas. It has a combined population (includes - Shelby, Tipton, Fayette, Desoto, Marshall, etc.) of 1,369,006.

The city is one of the USA’s major transport hubs. In fact, Memphis International Airport (MEM) has the 2nd largest cargo operations in the world by volume. And it generates a staggering $28.6 billion for the Memphis economy every year.

Memphis also has the 2nd busiest cargo port on the Mississippi River. This has an economic impact of more than $7 billion per year.

And it’s a key connection point for 5 Class 1 railroads and 3 Interstate highways. 

What’s more, $500 million has been invested on infrastructure over the past 10 years as part of the Memphis Regional Freight Infrastructure Plan.

Almost 11% of Memphis’ GDP comes from the leisure and tourism industry. (Source: Greater Memphis Chamber)

You see, the city attracts over 10,000,000 visitors every year. Much of this is due to its musical history.

Jerry Lee Lewis, Johnny Cash, Elvis Presley, Carl Perkins, Roy Orbison, Otis Redding, B.B. King and many others got their start in Memphis in the 1950s and 60s.

Most of them made their first recordings at Sun Studio in Beale Street - now a major tourist attraction.

Tourism has an estimated economic impact of $3.2 billion per year. (Source: Tennessee Department of Tourist Development)

On top of that, the industry employs over 50,000 people full time. And the good news is it’s growing at around 3% a year. (Source: The Memphis Convention & Visitors Bureau)

 

Employment Levels and Job Creation

The unemployment rate in Memphis peaked at 10.5% in October 2009. By April 2014 it had dropped to 8.4%. And experts say it will continue to fall.

Because companies expanding or relocating to Memphis Metro are expected to create over 4,000 new manufacturing jobs by 2016. (Source: Greater Memphis Chamber of Commerce)

As of February 2014 there were 623,277 people employed in the Metro area. Up from 607,500 one year earlier. (Source: Current Employment Statistics Survey)

That’s 15,777 new jobs. 

 

Population Growth

The population of Memphis is growing fast.

Between 2000 and 2012 the population of Metro Memphis grew from 1,135,614 to 1,340,940. (Source: US Census Bureau)

That’s an 18.08% increase. And by April 2014 it was estimated to be 1,369,006.

That’s another 28,066 people who need housing.

In the City of Memphis itself numbers swelled from 647,780 to 680,768 between 2012 and 2014. (Source: US Census Bureau)

And in Shelby County as a whole (where most of our properties are located) the increase was even higher.

The population grew from 928,792 to 940,764. That’s an extra 11,972 people who all need somewhere to live. This is keeping housing inventory low and pushing prices up.

These are just a few reasons to invest in Memphis, Tennessee. More to come in the following days!


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