Memphis Home Prices: $169K, Down 3% — 23 ZIPs Analyzed (2026)

$168,915. That’s what a typical Memphis home is worth as of February 2026, down 3.0% from a year ago. The city has now logged 12 straight months of falling prices, and the population has shrunk four years running.

Quick answer: The average home price in Memphis, TN is $168,915 as of February 2026, down 3.0% year over year according to Zillow.

Current Home Prices in Memphis

Memphis is one of the cheapest major metros in the South, and it’s getting cheaper. The median home value across 23 tracked ZIP codes sits at $168,915. That’s about 40% of the national typical home value.

The price floor is low. The gap between the cheapest and most expensive ZIP is wider than seven times — $57,108 in South Memphis versus $417,565 in East Memphis.

Prices have slid every single month in the past year. A year ago, the same basket of homes was worth $174,227. Today it’s $168,915 — a drop of $5,312, or roughly $443 per month in lost equity for a typical owner.

The decline is steady, not dramatic. No panic selling, just a slow grind lower. That pattern tracks with a metro that’s losing residents faster than it’s adding jobs in housing-sensitive sectors.

Memphis Home Prices by Neighborhood

The price map in Memphis runs north-to-east. Values climb as you move toward Germantown and East Memphis. They fall as you move toward the Mississippi River and the northern neighborhoods inside the I-240 loop.

Most Expensive

38120 ($417,565) — East Memphis. The only Memphis ZIP above $400K. Home values here are 2.5x the city median, but rents are only about 30% higher, suggesting buyers pay a premium for ownership, not cash flow.

38103 ($325,455) — Downtown. The urban core commands the second-highest prices, with rents near $1,510 reflecting the apartment-heavy mix along the riverfront.

38119 ($289,273) — Southeast Memphis near Germantown. Prices sit about 70% above the city average with rents near $1,540.

Most Affordable

38106 ($57,108) — South Memphis. The cheapest ZIP in the city and one of the cheapest in any major U.S. metro. Median home value is less than a third of the citywide number. Rent averages $913, nearly double the implied mortgage on a home at this price.

38108 ($70,324) — North Memphis. Values run about 58% below the city median, with rents at $920.

38114 ($72,447) — Orange Mound and surrounding neighborhoods. Homes here average just over $72K, while rent averages $981.

Rent vs Buy in Memphis

Memphis is one of the few U.S. cities where buying actually beats renting on a pure monthly-cost basis.

Take the citywide median of $168,915. With 20% down ($33,783) and a 30-year mortgage at 7%, the principal and interest payment runs about $899. Add property taxes (Tennessee has no state income tax but property tax averages 0.7% of value in Shelby County, about $99/month) and insurance (roughly $150/month in Memphis, which is higher than average due to storm risk). Total monthly cost: about $1,148.

The ZIP-level rent average across Memphis is roughly $1,200. So a typical buyer pays $50 less per month than a renter — before you count the mortgage principal being paid down.

The math flips in the cheapest ZIPs. In 38106, a $57K home carries a mortgage payment near $450. Rent is $913. You’d spend half as much owning.

In the priciest ZIPs, the calculation is tighter. In 38120, a $417K home carries a monthly cost near $2,500. Rent is $1,555. Renting wins there.

What Memphis lacks is price appreciation. A $50/month edge on the mortgage side disappears fast if your home drops 3% a year. Over a 12-month hold, the typical owner lost $5,000 in paper value — more than the annual rent savings.

Population Growth and Migration

Memphis is shrinking. The city has lost population every year since 2020.

That’s a 2.8% drop in four years — about 17,500 fewer residents. The trend is consistent, not one-off.

The rest of Tennessee is doing the opposite. Suburbs of Nashville grew at double-digit rates over the same period.

Memphis is the only major Tennessee city losing people. That matters for housing. Fewer residents means less demand, which means fewer bidding wars, more days on market, and the kind of slow price decline the data shows. Until the population trend reverses, there’s no structural reason for prices to jump.

Memphis Housing Market Trends

Prices in Memphis have moved in one direction for a year: down.

No month-over-month gains. The steepest drops came in spring and early summer 2025, when prices fell about $1,000 per month. The decline has slowed more recently — just $84 between January and February 2026 — which hints at the market finding a floor.

The max value in the dataset (the 95th-percentile home) peaked at $421,228 in June 2025 and now sits at $417,565. The min value (the 5th-percentile home) is essentially flat, bouncing between $57K and $60K all year.

Is Memphis a Good Place to Buy in 2026?

This is a buyer’s market, with conditions.

Prices are down 3%. Inventory is not in short supply. The population is shrinking. None of those favor sellers. If you’re buying to occupy, you have room to negotiate hard.

But the same data argues against buying as a short-term investment. Twelve straight months of declines, a four-year population loss, and no obvious catalyst for reversal mean you should not expect appreciation in the next 1-2 years. Your equity gains, if any, will come from paying down principal — not from price growth.

The case is strongest for: long-term owner-occupiers buying in stable, higher-priced ZIPs (38117, 38119, 38120) where rents also hold firm; and cash investors in the cheapest ZIPs where rental yields are high and the price floor is already near the bottom.

The case is weakest for: buyers who plan to sell in under three years, and anyone stretching their budget on the assumption that prices will rebound.

Memphis Housing Market Outlook for 2026-2027

The 3-month trend suggests the decline is flattening. From December to February, prices fell just $124. That’s a huge slowdown from the $1,000/month drops earlier in 2025.

If the current pace continues, Memphis prices will end 2026 close to where they started — somewhere in the $167K-$169K range. That would put the YoY number near zero by mid-year.

Watch two things. First, whether the population trend breaks — any sign of stabilization would tighten the market. Second, whether the high-end ZIPs (38120, 38103) hold their ground; they’ve already given back some ground from the 2025 peak and would signal broader weakness if they slide further.

Nothing in the provided data supports a forecast of strong appreciation in the next 12-18 months.

Similar Markets in TN

• Nashville — The Tennessee price benchmark. Memphis buyers priced out of Nashville’s market often cite affordability as the reason to stay put.
• Clarksville — A growing military town outside Nashville where prices and population move in the opposite direction from Memphis.
• Chattanooga — A growing mid-size Tennessee market worth comparing against Memphis for buyers considering the state.
• Murfreesboro — One of the fastest-growing Tennessee cities, offering a different housing profile for Memphis residents considering a move.
• Knoxville — East Tennessee’s largest city, often cited alongside Memphis as a mid-priced Tennessee market.

Frequently Asked Questions

What is the average home price in Memphis?

The average home price in Memphis, TN is $168,915 as of February 2026. That number is the Zillow Home Value Index median across 23 ZIP codes inside the city. Individual ZIPs range from $57,108 to $417,565.

Are home prices going up or down in Memphis?

Down. Memphis home values have fallen 3.0% over the past year, and the decline has been steady — prices dropped in every single month of the last 12. The pace of the decline slowed sharply in early 2026, with just $124 of drop between December and February.

Is it cheaper to rent or buy in Memphis?

Buying is slightly cheaper on a monthly basis in most Memphis ZIPs. A mortgage on a median-priced $168,915 home runs about $1,150 per month with taxes and insurance, versus an average rent near $1,200. The math flips only in the most expensive ZIPs, where renting is cheaper than buying.

What is the most affordable neighborhood in Memphis?

ZIP 38106 in South Memphis has the lowest typical home value at $57,108, less than a third of the citywide median. The runners-up are 38108 ($70,324) in North Memphis and 38114 ($72,447) near Orange Mound. Rents in these ZIPs average $900-$980.

Methodology

Home values are based on the Zillow Home Value Index (ZHVI), a smoothed measure of typical home values in the 35th to 65th percentile range. Rent estimates use the Zillow Observed Rent Index (ZORI). Population figures come from the U.S. Census Bureau Population Estimates Program (2020-2024 vintage). All datasets are publicly available. Housing data updated 2026-02-28.