Memphis Vacancy Rates Are Dropping — But the Competition Isn’t
Vacancy rates in Memphis are finally trending in the right direction — down. After hovering in the 11–12% range for several years, the city’s rental market is showing signs of stabilization. Current reports place overall vacancy at around 7.9% as of spring 2025, with a multi-family vacancy rate of 8.4%.
But let’s be clear: while that’s an improvement, it’s still a higher-than-average vacancy rate. The national overall vacancy rate is 7.1% as of the end of the first quarter. Competition is heavy, in part due to a wave of new construction across the city. These fresh crops of apartments offer sleek amenities and aggressive move-in specials to attract renters.
New Builds + Big Discounts = Fierce Competition
Right now, over 4,400 rentals on Apartments.com in Memphis are offering move-in incentives — including:
- One month of free rent
- Discounted move-in fees
- Reduced base rent for the first lease term
And when you zoom in locally on Zillow, the numbers speak volumes:
- Downtown: 800+ active rentals
- Midtown: 800+ active rentals
- East Memphis: 750+ active rentals
- Citywide: Over 5,200 active rentals — not even counting Germantown, Collierville, or the surrounding suburbs
That’s a lot of choice for renters — and a clear signal to owners that pricing and presentation matter more than ever.
Renters Shop With Their Eyes
According to Zillow, listings that are presented well online dramatically outperform others. Here’s what the data says:
- Listings with 5+ professional-quality photos get 30% more views
- Listings with a 3D tour or video get 25% more views and 15% more inquiries
- Prospective tenants want to see the actual unit they’d be renting — even in duplexes with mirrored sides or multi-family properties with similar layouts
- Listings with floor plans are more trusted and better received
- Allowing pets increases inquiries by 7%
- Properties with off-street parking see a 7% bump in interest
- Complete listings — with clear fees and full details — generate the most qualified leads
Here’s What That Means for You
If your property is vacant, the way it looks online matters more than ever. And if you’ve got a great tenant in place, now is the time to think carefully about renewal pricing. Even a modest rent increase could send them shopping — and with the current flood of deals in the market, there’s a good chance they’ll find one. If that happens, you could be left with a vacancy just as the peak summer leasing season winds down, making it harder (and more expensive) to find your next tenant quickly.
Sources:
- https://www.point2homes.com/US/Average-Rent/TN/Memphis.html
- https://fred.stlouisfed.org/series/RRVRUSQ156N
- https://www.apartmentlist.com/research/national-rent-data
- https://aoausa.com/national-vacancy-rates-in-the-first-quarter-2025/
- https://www.zillow.com/rentals-network/high-performing-rentals-listings/
- https://www.huduser.gov/portal/publications/pdf/MemphisTN-MS-AR-CHMA-24.pdf
Behind The Scenes at 901
Our Assistant Property Manager, Hayden, and his wife welcomed a sweet new addition to their crew on July 10th — Theodora “Teddy” Fletcher Davis!
She earns the title of 901’s first baby of the summer, but not the last! Danielle’s daughter welcomed a new baby boy on July 26th — Danielle’s first grandchild!