Building Costs Per Square Foot in the City of Memphis (TN), USA

Residential Construction Market Analysis in the City of Memphis (TN), USA

Newly Built House in Memphis 752 Carnes Station Cv TN38111 – 3 Bedrooms and 3
Baths with 2 Attached Garages – Built in 2022 – Price $439,000

Building costs are 1% above the national average in the City of Memphis in Tennessee. For people who want to live a family life, in a place that has southern charm and the spirit of a small town but with all the advantages of a city, Memphis is your place in the world.

While in the past Memphis was only known for its rise in crime events, its image began to improve and crime rates have dropped significantly in recent times. Despite being considered an unsafe city, there are some very good parts, with great school districts, that are perfect for raising a family.

From cheap prices for large houses to picturesque buildings, Memphis has it all, which is why we will dedicate this article to telling you everything you need to know about its real estate market. Get ready to know all the details about the construction outlook of this city, in addition to the average values that you can find in the market, and future projections.

Memphis (TN) Construction Outlook

Although Memphis is not the capital of the most populous city of Tennessee (that title goes to Nashville), it is one of the largest cities and probably one of the best-known as well. It has more than 600,000 inhabitants and is one of the most populated cities in the Southeast, which makes it a receptive pole for new inhabitants from the entire southern region and the country in general.

Memphis is not a city full of skyscrapers, on the contrary, it is quite a small city. In its center you can find tall buildings, some exceeding 20 floors but they are not the majority. The most common are residential neighborhoods, the typical suburbs that you would see in any American movie or series.

The houses are usually made with wooden plates, concrete, or typical brick and cement houses. Memphis is not a place with very strong storms, so that’s why the construction is usually quite simple. The houses usually have a garden or at least enough grass, even in those neighborhoods of middle or lower class.

Memphis (TN) Housing Market Analysis and Forecast

The values ​​of the real estate market in Memphis are increasing in recent times. Compared to October last year, this year there was an increase of 14%. Still, even with that increase, the average is lower than the national average.

Houses take approximately 40 days to sell. It is rare for a property to spend more time than that listed in Memphis, but different factors come into play at this point. If the house is in an unsafe neighborhood, or if it is run down, it will most likely take longer to sell.

During this month more than 600 properties were sold, although in the summer months more than 700 properties were sold so there was a drop if you compare those two times of the year. The number of properties sold is expected to drop in winter and home values ​​are expected to drop as well.

Basically, if you want to buy a house the best time is winter since it is cheaper, and if you want to sell then summer is the best time since you can get more money. However, do not forget that when houses are cheaper in the case of Memphis, it also means that there is less variety in the market, so you must consider all the factors.

If you are ready to buy a cheap house and then spend money to improve it, then Memphis is definitely the city for you. You can find great properties at a cheaper price if they are in poor condition, and from there you can build your new forever home.

Memphis (TN) Average House Price (Median Home Price)

The Median Home Price in Memphis is currently $205,000, although it is expected to drop to $200,000 during January and February 2023. Remember that the median home price is a value obtained from all the properties listed, so it can vary depending on the type of property, and you can find cheaper or more expensive ones depending on their condition or where they are located.

The single-family home has an average value of $210,000, and in the summer of 2022, it reached a peak of $220,000. There is always a tendency in Memphis for prices to go down in the winter compared to summer.

Townhouses have a median current value of $180,000. This type of property is the one with the most fluctuating and unpredictable values since during July it had a drop in value reaching $150,000, something that is not common. However, it is expected to remain stable during the winter months, and experts do not believe that it will exceed $190,000.

Lastly, condo/co-op properties have a current median value of $190,000. Again, a novel trend occurred in the summer as values ​​were lower than that. This shows that for some property types the Memphis real estate market can deliver surprises and unexpected turns. In any case, the experts agree that it will not exceed $ 200,000 at least for the remainder of this year.

Proposed Residential Building Projects in Memphis (TN)

Memphis is a city that has the spirit of a small town, so most of the residential construction projects are mostly single-family homes. There are some projects of a series of condominiums on the outskirts of the city, which will have houses with up to 2 rooms each.

In the city center, there are currently 4 residential buildings under construction. There are other building projects, but they are intended to be office buildings or to combine both functionalities (offices and other residential apartments).

There is faith that tourism will improve in Memphis, especially after the premiere and success of the movie about the famous singer Elvis, who is an icon of the city. For that same reason, some residential projects will include apartments that can be rented as Airbnb.

Currently, there are no luxury housing projects in Memphis, since it is more than anything a city of middle or lower-class people. Generally, the most luxurious homes in Tennessee can be found in Nashville. However, Memphis is not far behind and its new constructions are quite modern too so you can expect several improvements in residential projects in the coming years.

Newly Built House in Memphis 786 E Snowden
Cir TN38104 – 4 Bedrooms and 3 Baths with 2
Attached Garages – Built in 2022 – Price
$499,900

Building Costs Per Square Foot for Single Family Homes in the City of Memphis (TN), USA

Building costs are 1% above the national average in the City of Memphis in Tennessee.

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in Memphis City ranges from $348.34 per sqft to $533.99 per sqft, with the average being $411.09 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in Memphis City ranges from $211.71 per sqft to $324.51 per sqft, with the average being $249.83 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in Memphis City ranges from $136.86 per sqft to $207.87 per sqft, with the average being $160.23 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in Memphis City ranges from $99.88 per sqft to $153.17 per sqft, with the average being $117.87 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in Memphis City ranges from $81.07 per sqft to $124.16 per sqft, with the average being $95.60 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in Memphis City ranges from $63.94 per sqft to $98.01 per sqft, with the average being $75.43 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.