Why Memphis
is the smartest bet
in American real estate.

Memphis welcomed 13.1 million visitors in 2024, generating $4.3 billion in direct spending and supporting over 28,000 local jobs — a visitor count already 6% above pre-pandemic levels. The tourism sector saves Memphis taxpayers over $1,000 per household annually in offsetting tax revenue. For short-term rental and long-term rental owners alike, this economic engine translates into sustained demand that few mid-sized U.S. markets can match.

Graceland remains one of the most visited private homes in the country, drawing 600,000+ visitors each year. Beale Street, the National Civil Rights Museum, Sun Studio, Stax Museum, the Memphis Zoo, and a legendary food scene drive year-round visitation — with Australia and Canada among the fastest-growing international source markets.

The Mississippi River cruise industry has added a powerful new demand layer. Viking and American Cruise Lines operate multi-day voyages with Memphis as a key embarkation and port city — up to 94 boat dockings a year and an estimated $100 million annual economic impact, a figure that has tripled since 2016. The city is investing $36 million to expand Beale Street Landing to dock two ships simultaneously. Cruise passengers spend an estimated $135 per person per day at port, and many book pre- and post-cruise stays in Downtown Memphis.

The average overnight travel party spends $508 per night. Nearly half of overnight groups include children. The average Airbnb stay runs 4.8 nights — longer than most competing markets — driving higher per-booking revenue. Explore the Memphis neighborhoods where LPS operates.

The numbers validate the thesis. Airbtics reports a typical Memphis short-term rental books 197 nights per year at a 54% median occupancy rate and a $131 average daily rate, generating roughly $25K per year on a median home price around $144K. Rentometer ranked Memphis the #4 Best Large Metro for Rental Yield in the United States; Realtor.com named it the #1 Affordable City Where Investors Are Buying Big. On the long-term side, one-bedrooms have grown 9% year over year to $1,160, and two-bedrooms are up 18% to $1,307 — a rare market where rents climb while most U.S. metros soften.

Crosstown Concourse is the crown jewel: a $200 million conversion of a 1.5 million sq ft former Sears distribution center into a "vertical urban village" that has won over 30 national design awards, including an AIA Institute Honor Award. The 10-story complex houses 265 apartments, 620,000+ sq ft of commercial space, a YMCA, Church Health, a public charter high school, art galleries, the Memphis Listening Lab (35,000+ records), restaurants, a brewery, and performance spaces. An estimated 3,000 people visit daily — the largest historic adaptive reuse LEED Platinum project in the world.

The South Main Arts District has become one of Memphis's most vibrant corridors — galleries, boutiques, restaurants (including Michelin-recognized Felicia Suzanne's and The Lobbyist), and a streetcar line. The Broad Avenue Arts District in Binghampton features independent galleries, murals, and an annual Art Walk with 50+ local artists. Cooper-Young hosts one of Memphis's largest outdoor festivals with 435+ artisans.

The Edge District between Downtown and the Medical District continues to densify with new restaurants, bars, and creative office space. South City is transforming the historic Soulsville neighborhood. Bass Pro Shops at the Pyramid features North America's tallest freestanding elevator, an indoor hotel, and bowling lanes. The Sterick Building, once Memphis's tallest, is undergoing revitalization. And the $150M+ renovation converting the Downtown Sheraton to a Marriott is adding yet another anchor to the convention corridor.

These neighborhood transformations are not feel-good stories. They create the walkable, amenity-rich environments that drive STR bookings and premium nightly rates. Read more on the LPS blog about which Memphis neighborhoods are outperforming.