Memphis Maintains Pricing Power Amid Economic Fallout

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.