Rankings/Memphis, TN-MS-AR

Memphis, TN-MS-AR

NeutralTier 1CBSA 32820Compare

Risk Rank: #183 of 274Month: 2026-05Score change (12m):↓ -6

46score

Composite risk percentile vs 274 metros (higher = higher risk)

Executive Summary

Memphis's housing market shows average risk, ranking 183rd of 274 metros. The market recently entered Hypersupply. Inventory levels are elevated, warranting monitoring. Inventory accumulating faster than demand — the market is shifting toward buyers.

Memphis experienced a market correction from early 2025 through mid-2025. Elevated inventory persists, suggesting the market hasn't fully normalized.

Inventory is elevated (+16% YoY) and days on market are up +2% — supply is building but not yet at stress levels.

Rent growth is roughly keeping pace with price appreciation, suggesting valuations are not stretched.

Cycle Phase

RecoveryExpansionHypersupplyRecession

1 month in current phase

Building activity may be outpacing demand absorption

Key Dynamics

Risk is primarily driven by migration and employment, while price momentum provides the most support.

Top Drivers

Migrationp98

Net AGI migration (risk inverted)

Employmentp58

12-month employment change (risk inverted)

Permit Growthp56

YoY permit change

Market Signals

Inventory is elevated (+16% YoY) and days on market are up +2% — supply is building but not yet at stress levels.

Liquidity

Watch↑

Active Listings YoY

+16.2%p66

Days on Market YoY

+1.8%p51

Months in status1

Data through May 2026

Valuation

Balanced—

Rent vs. Price Growth

+0.6%p74

Months in status1

Data through May 2026Rent growth vs price growth (rent support). Note: Affordability and Valuation measure different structural dimensions and can diverge.

Factor Details

Lower riskHigher risk

Low RiskBelow AvgNeutralElevatedHigh Risk

Price MomentumLow Risk

+0.2%p12

12-month HPI change — higher = overheating

Permit GrowthNeutral

+1.8%p56

YoY permit change — higher = supply pressure

Permits per CapitaBelow Avg

2.71p32

Permits per 1,000 residents — higher = overbuilding risk

AffordabilityLow Risk

0.25p20

Mortgage payment / income — higher = more burdened

EmploymentNeutral

-0.1%p58

12-month employment change (risk inverted)

MigrationHigh Risk

-$390Kp98

Net AGI migration (risk inverted)

National Context

Credit Conditions

Credit Regime

Stable—

Oversupply with deteriorating transactions and no credit excuse. Supply-driven correction risk is elevated.

Bank Lending Standards

-3.7Normal

Rate Change (YoY)

-38 bpsNormal

Mortgage Risk Premium

+199 bpsElevated

Stable for 9 quartersData through 2026-Q2

Supply Pipeline

Supply Regime

Accumulating—

Supply pipeline is building up while credit remains available. New units are accumulating in the system — watch for delivery pressure in coming quarters.

Pipeline Ratio

0.90Elevated

Completion-Permit Divergence

-5.9 ppNormal

Accumulating for 5 quartersData through 2026-Q2

Local Signals

Metro Permit Activity

Permit Activity

Normal

YoY Permit Growth

+1.8%Within norm

Raw signal — not the composite percentile

Relative to 2016–2019 norms for this metro

Permit activity is typical but demand is softening. Price pressure is forming on the demand side — this is not a supply problem.

Internal Structure

County-level structural analysis.

County-level structural analysis is not available for this metro due to fewer than 3 qualifying counties.

Score History

Month	Phase	Score	Price	Permits	Afford	Employ	Migr
2025-12	Exp	42	24	17	21	60	98
2025-11	Rec	49	15	54	19	76	92
2025-09	Rec	44	15	54	19	42	92
2025-07	Hyp	48	8	54	19	77	92
2025-05	Ress	52	28	54	23	79	92
2025-03	Ress	55	27	54	24	96	92
2025-02	Hyp	56	27	54	24	97	92
2025-01	Rec	56	26	54	24	98	92
2024-12	Hyp	52	9	54	22	93	92
2024-10	Hyp	50	11	54	22	79	92
2024-07	Ress	52	18	54	24	83	92
2024-05	Ress	50	15	54	26	77	92
2024-02	Ress	50	8	54	27	81	92
2024-01	Hyp	51	9	54	27	83	92
2023-12	Rec	52	6	54	31	88	92
2023-11	Ress	51	7	54	31	85	92
2023-09	Ress	54	15	54	33	93	92
2023-08	Hyp	56	23	54	33	96	92
2023-06	Hyp	60	40	54	37	98	92
2023-03	Hyp	63	61	54	42	89	92
2023-02	Ress	63	56	54	42	94	92
2022-12	Ress	61	65	54	32	82	92
2022-09	Ress	59	57	54	29	84	92
2022-06	Ress	53	56	54	28	51	92
2022-05	Hyp	54	57	54	28	51	92
2022-04	Exp	54	57	54	28	57	92
2022-02	Exp	58	64	54	30	67	92
2022-01	Rec	60	63	54	30	82	92
2021-11	Rec	63	56	54	42	93	93
2021-10	Exp	59	56	54	42	73	93
2021-08	Exp	52	49	54	41	40	93
2021-05	Exp	62	51	54	41	92	93
2021-04	Rec	62	55	54	41	93	93
2021-02	Rec	54	66	54	41	34	93
2021-01	Exp	53	63	54	41	28	93
2020-11	Exp	50	64	54	29	22	92
2020-10	Rec	51	65	54	29	28	92
2020-08	Rec	59	85	54	30	54	92
2020-05	Rec	52	75	54	29	23	92
2020-02	Exp	62	82	54	30	78	92
2019-12	Exp	62	81	54	28	79	90
2019-09	Exp	57	69	54	27	66	90
2019-08	Rec	56	68	54	27	60	90
2019-06	Rec	56	75	54	27	55	90
2019-05	Exp	55	74	54	27	48	90
2019-03	Exp	53	61	54	26	51	90
2019-01	Exp	53	65	54	26	44	90

Data Vintages

Price (HPI)2026-Q1

Permits2026-05

Income2024

Employment2026-05

Migration2023