Annual rent growth in the Memphis multifamily market remained muted in 2025, with effective rents declining 0.2% year over year through December. This softness reflects elevated vacancy and ongoing competition from new supply, which continued to limit pricing power across the metro.
Supply pressure is set to ease materially in 2026. Deliveries are projected to fall sharply to 456 units, well below both 2025 levels and the long-term average, while units under construction dropped to 765 at year-end 2025—signaling fewer active lease-ups competing for the same renter pool and a clearer path toward improving market balance.
Rent growth is expected to stabilize in 2026. Effective rents are projected to hold near $1,165 (+0.3% YoY), and while meaningful acceleration likely waits for occupancy to firm, a lighter delivery schedule should reduce downside volatility and support steadier quarter-to-quarter performance by late 2026.
Memphis enters 2026 with fundamentals still under some pressure, but the overall setup increasingly points to stabilization rather than further material deterioration...
