Memphis has long been known as a market with some of the lowest entry prices in the U.S., but this trend has slowly changed over the past five years. The low price point can be seen as a factor that has contributed to its upward potential.

According to Zillow data, the median home price in the Memphis area was around $150,000 at the beginning of 2021, and it is now estimated to have risen to about $200,000. When calculated over five years, the cumulative increase is roughly between 32 and 34 percent, which is slightly below the commonly cited national average range of 35 to 45 percent, but still close.

Year by year, from 2021 to the first half of 2022, the low entry prices attracted both outside investors and genuine buyers, leading to significant price increases. From the second half of 2022 through 2023, the rise in prices clearly slowed as investment demand decreased, and it appears that a gradual recovery trend is emerging again after 2024. The purchasing activities of large investment firms aiming for rental yields also seem to have influenced price volatility during this period.

From my nearly 20 years of observing this local market, it seems that a significant part of Memphis's upward trend is driven by its employment base centered around logistics and transportation industries, as well as its low cost of living. However, there was a time when the proportion of outside investors focused on rentals was high, which meant that the volatility due to interest rates was greater than in other areas. The presence of FedEx's headquarters and logistics hub supports consistent employment in the region.

For Korean households, Memphis is still considered a region with relatively low initial settlement costs, but it is important to also consider the significant variations in safety and school districts across different areas. If you are contemplating a purchase, I recommend thoroughly checking school district information and crime statistics by area. Notably, nearby suburban areas like Collierville and Germantown have market trends that differ significantly from the urban core.

Regarding future prospects, some believe that as long as the logistics industry continues to grow, a gradual upward trend will be maintained, while others think that as the proportion of investment demand decreases, the pace of increase may not be as strong as before.

• Employment base centered on logistics and transportation industries
• Low cost of living and entry prices
• Significant variations in safety and school districts by area

Compared to other major Southern cities, Memphis's rate of increase is not as spectacular as Nashville, but due to its very low entry prices, it still attracts interest in terms of actual investment returns. However, it is wise to also consider vacancy rates and management burdens along with returns.

If you are a Korean household considering actual residence, I recommend first comparing the school districts and market prices of nearby suburban areas rather than the urban core. Even within the Memphis metropolitan area, the differences in living conditions can be quite significant depending on the area.

Ultimately, Memphis can be summarized as a market that has maintained a gradual upward trend based on its low price point, requiring careful examination of specific areas for both residential and investment purposes.