Memphis, TN Multifamily Market Report Q3 2026

Tenants Give Back 97 Units in Q3, Yet Completions Fall 97%

Demand

Memphis posted net absorption of -97 units in Q3 2026, against 404 in the same quarter last year. Vacancy is 5.6%, 3 bps looser than Q3 2025. West Memphis is the tightest submarket at 3.1% vacancy; Southaven/Horn Lake/Olive Branch leads rent growth at +7.0%. Trailing-12-month absorption of -27 units compares with 4,037 a year earlier. Rent of $1,201 is up 0.4% year over year and within 1% of the Q2 2025 peak of $1,204.

Supply

Memphis recorded 16 units of completions in Q3 and 42 over the trailing twelve months (-97% versus the prior TTM period). Units under construction equal 0.2% of inventory, concentrated in Cordova/Bartlett at 0.9% of its stock. Annual completions peaked at 3,201 units in 2001. Q3 deliveries were less than half of last year’s 306.

Investment Market

Memphis recorded $0.3B in sales over the trailing twelve months, -27% against the prior TTM period; Q3 accounted for $75M. The high-water mark in this series is $1.2B in 2021.

Memphis cap rates average 6.99%. Pricing sits at $89k per unit, higher for 2 consecutive years. The cap rate is 113 bps above the Q4 2021 low of 5.86%. Price per unit is 6% below the Q2 2022 peak of $95k.