Memphis Underperforming Most Large Apartment Markets Despite Limited Supply

Market fundamentals remain weak in the Memphis apartment market despite very limited new supply. The market saw the completion of less than 800 units in the year-ending 1st quarter 2026, below the five-year annual average of roughly 1,100 units. In addition, inventory expansion in Memphis over the past year of 0.7% ranked in the bottom 10 among the nation’s largest 50 markets, according to data from RealPage Market Analytics. And at the end of the quarter, there were less than 90 units under construction in Memphis, representing 0.1% of existing inventory, the smallest growth rate among large markets. The decline in new supply has provided very little lift to performance fundamentals in Memphis, as demand has waned. In March 2026, occupancy in Memphis improved 50 basis points (bps), the second-largest monthly ramp up among the nation’s 50 largest markets, behind only Jacksonville. On an annual basis, occupancy in Memphis was up 20 bps. Despite the improvement, occupancy in Memphis remained in the bottom 10 among large markets, at 94% as of March. Improved occupancy has not translated into pricing power. Similar to occupancy, effective asking rents ticked up in March, with a 0.4% increase. However, pricing downturns in previous months kept annual rent change in negative territory, with rents declining 2.8% year-over-year. The lack of rent growth has kept Memphis as one of the most affordable large rental markets in the nation, with monthly rents averaging $1,237, ahead of only San Antonio. Although competition from new supply is subsiding, Memphis should see only mild gains in occupancy and rents over the coming year, with both metrics expected to rank in the bottom 10 among the nation’s largest markets.