In this article, we will explore six detailed reasons on why are houses so cheap in Memphis, Tennessee. Memphis is a city with a relatively low cost of living and a housing market that is known for its affordability.
While there are many factors that can influence the price of housing in any given area, there are several reasons why houses in Memphis are relatively cheap compared to other cities in the United States. Keep reading!
Why are houses so cheap in Memphis Tennessee?
(a) Slow-growing economy
One reason why houses are cheap in Memphis is due to the city’s economic conditions. Memphis is a city that has struggled with a slow-growing economy, high poverty rates, and low median incomes. According to the United States Census Bureau, the median household income in Memphis from 2017 to 2021 averaged at $43,981, compared to the national median household income of $70,784.
The poverty rate in Memphis is also high, with over 25% of the population living below the poverty line. These factors contribute to a lower demand for housing and lower property values. With fewer people able to afford housing, the prices are kept lower to attract more buyers.
(b) High crime rates
Another reason why houses are cheap in Memphis is due to the city’s high crime rates. Memphis is often cited as one of the most dangerous cities in the United States, with high rates of violent crime. According to USA Today Reporting program, Memphis had the highest violent crime rate of any city in the country in 2018. This can make some people hesitant to buy property in the area, which may decrease demand and lead to lower prices of rental properties.
(c) Slow population growth
Memphis has experienced a slow population growth over the past few decades. According to Macrotrends, the population of Memphis has been increasing steadily especially in metropolitan areas. In 2022, the estimated population of Memphis was 1,163,000, – a 0.61% rise from 2021. The low growth rate can lead to a low demand for housing and put downward pressure on prices. With fewer people to occupy the available homes, the supply exceeds the demand and prices drop.
(d) Disadvantaged geographic location
Memphis is located in the southeastern United States, which is generally considered to be a less desirable region for many people to live in than other parts of the country. The region’s hot and humid summers can be difficult to tolerate, and many people prefer to live in areas with milder climates.
Additionally, the South is sometimes stereotyped as being less progressive than other parts of the country, which may be a turn-off for some people. This may also contribute to lower demand and lower prices in the housing market.
(e) High property taxes
Memphis has some of the highest property tax rates in the United States. According to the Tax Foundation, Tennessee had high effective property tax rate in the country in 2020, with an average rate of 0.75%. Memphis, however, has an average effective property tax rate of 1.36%, which is significantly higher than the state average. This can make it more expensive to own property in the area, which may decrease demand and lower prices.
(f) Aging housing stock
Many of the houses in Memphis were built in the mid-20th century and may be in need of significant updates and repairs. This can make them less attractive to buyers, which may decrease demand and lower prices. Additionally, these older homes may not meet modern building codes and may require expensive upgrades to bring them up to current standards.
In a nutshell, the reasons why houses in Memphis, Tennessee are relatively cheap compared to other cities in the United States include; economic conditions, crime rates, population decline, geographic location, high property taxes, and an aging housing stock. All these contribute to the lower prices in the housing market.
Famous Things Memphis is known for
Memphis, Tennessee is a city with a rich history and culture that has contributed greatly to American music, cuisine, and civil rights. Here are five famous things that Memphis is known and popular for:
One of the most famous things about Memphis is its vibrant music scene. Memphis has played a pivotal role in the development of several genres of music, including blues, rock ‘n’ roll, and soul. Some of the most iconic musicians in American history, such as Elvis Presley, B.B. King, and Johnny Cash, recorded some of their most famous songs in Memphis.
The city is also home to several music festivals, including the Beale Street Music Festival, the Memphis Music and Heritage Festival, and the Memphis Jazz Festival.
Memphis is widely regarded as one of the best cities in the United States for barbecue. The city is known for its distinctive style of barbecue, which features slow-cooked pork ribs that are coated in a dry rub seasoning and smoked over hickory wood. Several famous barbecue restaurants are located in Memphis, including Central BBQ, Rendezvous, and Corky’s. The World Championship Barbecue Cooking Contest is also held in Memphis every year.
(c) Civil Rights History
Memphis played a crucial role in the civil rights movement of the 20th century. The city was the site of several pivotal events in the movement, including the sanitation workers’ strike of 1968, which brought Martin Luther King Jr. to the city. King was assassinated in Memphis on April 4, 1968, and his legacy is celebrated at the National Civil Rights Museum, which is located at the Lorraine Motel where he was shot.
Graceland is the former home of Elvis Presley and is one of the most popular tourist attractions in Memphis. The mansion has been preserved as a museum and is open to the public for tours. Visitors can see many of the rooms in the mansion, including the famous Jungle Room, where Presley recorded some of his music.
Memphis is home to several popular sports teams. The Memphis Grizzlies, a professional basketball team, play in the NBA and have a loyal fan base in the city. The University of Memphis is also known for its basketball program, which has produced several NBA players over the years. Additionally, the city is home to several minor league sports teams, including the Memphis Redbirds baseball team and the Memphis 901 FC soccer team.
Memphis is a city with a diverse and rich cultural history. From its contributions to music and barbecue to its significant role in the civil rights movement, Memphis is a city that has left a lasting impact on American culture. The city’s famous landmarks, such as Graceland and the National Civil Rights Museum, draw millions of tourists every year, while its sports teams and festivals provide entertainment for locals and visitors alike.