Memphis Maintains Pricing Power Amid Economic Fallout

  in   Insights

While much of the nation turned to rent cuts during the recent economic decline, Memphis held onto some pricing power. In the year-ending May 2020, Memphis apartment operators pushed same-store rents for new leases up 2.9%. While slightly under the market’s five-year average (3.2%), that was the best performance among the nation’s largest 50 apartment markets. Annual rent growth in Memphis was propped up by a 0.6% increase specifically in May, also a leading performance among the top 50 markets. Looking back, Memphis has been a lackluster performer over much of the past decade. With occupancy primarily at or below regional and national norms, apartment operators have had difficulty raising rents on a consistent basis. Over the past two years, however, annual rent increases ranged from roughly 3% to 5%, exceeding the U.S. norm for much of that period.