Cost of Living in Memphis, TN: What Your Money Really Buys

Memphis has a reputation as a music city and a barbecue city. It also has a very strong case as a value city. If you are looking at a move and trying to understand how far your paycheck will go in Shelby County, it helps to break the cost of living into real numbers instead of vague claims. Below is a data backed look at how Memphis compares to the national picture on everyday costs, housing, and population trends, plus some very specific reasons people choose to live here.

How Memphis Cost of Living Compares to the Nation

Several independent data sources agree on the same basic point. Memphis is cheaper than the average US city. An index from AreaVibes puts the overall cost of living in Memphis at 86 on a scale where the national average is 100. The overall cost of living in Memphis sits about 10% below the national average.

That gap might not sound dramatic at first glance. Over a year of rent or mortgage payments, utility bills, fuel, and groceries, a 10% to 14% discount adds up quickly, especially for households with children or for anyone trying to pay down debt and build savings.
Breaking that down by category:

• Housing costs are roughly 14% to 15% lower than the national average.
  
  
• Utility prices come in about 16% to 18% below the national average.
  
  
• Transportation costs, including fuel and local transit, are about 11% to 12% lower than the national average.
  
  

In other words, the basic framework of life in Memphis is consistently discounted compared with what many Americans face.

Home Prices in Memphis vs the Typical US Market

Housing is usually the biggest line item in a household budget, so this is where Memphis really separates itself.

Memphis ranks among the least expensive large cities in the country for homebuyers. It pegs the median home sale price at about $271,000.

For comparison, a recent national analysis using Census data and broader market figures puts the typical US home price near $366,000. That gap of roughly $95,000 between a typical Memphis home and a typical US home has real implications. Monthly mortgage payments, property tax bills, and required income to qualify for a loan all scale off that difference.

Rental costs follow the same pattern. Memphis rentals fall in the $940 to $1,280 range per month, with overall housing costs about 14% lower than the US average.

There is another way to view the same story. An Investopedia feature on music focused retirement destinations notes that Memphis offers a cost of living about 13% below the national average and a typical home price in the low $100,000s in some segments of the market. This reflects older and lower cost housing stock in some neighborhoods as well as newer construction and higher priced areas that pull the median higher.

The headline is simple. Memphis gives buyers and long term renters access to a major metro area at a price level that looks more like a mid sized city.

Is Memphis Growing? Population Trends from 2024 to 2025

Population trends tell you a lot about demand for housing, traffic, school growth, and long term economic stability.

For the city proper, a Tennessee demographics analysis that relies on US Census estimates projects a 2025 population of about 607,273 residents. That represents a slight decline of about 0.6% per year from recent counts.

The metro area tells a different story. Macrotrends estimates the 2024 Memphis metro population at about 1,179,000 and the 2025 figure at about 1,188,000. That is an increase of about 0.76% in a single year.

Taken together, the data suggests that growth has been shifting toward the suburbs and surrounding counties rather than concentrating inside the city limits.

Moving to Memphis and Finding Storage Along the Way

For someone considering a move, this shifting population pattern can translate into more options in nearby communities while still keeping commuting distance to core Memphis employers and attractions. A move often involves timing gaps between leases, temporary downsizing, or the need to protect sensitive items while getting settled. This is where StrongPoint Storage becomes especially helpful when you are looking for storage options near Memphis.
 

StrongPoint Storage offers climate controlled storage units in Memphis that help safeguard belongings from Memphis heat and humidity. Their facilities use high tech systems for security and access, which makes storage feel reliable during a transition period. New residents who are staging a home, waiting on a closing date, or simply trying to organize their belongings during a move can use StrongPoint as a buffer that keeps the process manageable. Convenient access hours, modern layouts, and clean indoor units add a level of comfort that fits well with a fresh start in a new city.

The Cost of Groceries and Everyday Essentials

Housing may get the headlines, but weekly grocery runs have a big influence on how a city feels day to day.

Memphis grocery costs sit about 1.1% below the national average. For a married couple with children between ages 6 and 17, its model suggests an average grocery bill of about $1,553 per month in Memphis, slightly lower than the national benchmark.

If you want to zoom in to individual items, as of late 2025, approximate prices are:

• $0.94 for a quart of milk
  
  
• $2.47 for a standard loaf of bread
  
  
• $1.68 for a pound of rice
  
  
• $3.09 for a dozen eggs
  
  
• $4.85 for a pound of local cheese
  
  

Those numbers shift month to month, and national data from the Bureau of Labor Statistics shows that food prices have climbed sharply since 2020. Grocery costs nationwide have risen more than 20% over that period, with smaller yearly increases more recently. The key point is that Memphis sits slightly below that national baseline, so households feel those national trends but with a bit more breathing room than shoppers in more expensive cities.

Utilities also matter to the monthly budget. Memphis residents pay roughly 16% to 18% less for utilities than the US average, which can soften the sting of summer cooling and winter heating.

What Draws People to Memphis Besides Lower Costs

Price alone rarely convinces someone to move. Memphis combines its lower cost structure with a mix of economic anchors and cultural assets that give the city a very specific identity.

1. A serious logistics and corporate hub
Memphis International Airport ranks among the world leaders for air cargo volume and serves as the global hub for FedEx. That brings a dense ecosystem of logistics, transportation, and supply chain jobs along with related corporate roles. The metro area also includes major employers in manufacturing, distribution, and business services that rely on that freight infrastructure.

2. A nationally known medical and research cluster
St. Jude Children’s Research Hospital, the University of Tennessee Health Science Center, and the Methodist Le Bonheur and Baptist Memorial hospital systems make Memphis a regional center for healthcare and biomedical research. For many professionals in medicine, nursing, administration, and life sciences, this concentration of institutions creates career opportunities without the price tag of larger coastal cities.

3. Music history that still shows up in everyday life
Memphis is widely recognized as a birthplace of blues and rock and roll. Beale Street, Sun Studio, and Graceland are not just tourism slogans. They are active venues and landmarks that still host live shows, tours, and festivals throughout the year. For residents, this translates into regular access to performances in small clubs, outdoor events along the riverfront, and major touring acts at venues across the city.

4. Food culture grounded in very specific neighborhoods
Memphis barbecue is a national conversation all by itself. Many of the most respected spots sit in long standing neighborhoods rather than tourist strips. From ribs and pulled pork on Summer Avenue to soul food institutions in South Memphis, many residents build their social lives around local restaurants and food festivals. Add in growing craft breweries and coffee shops, and the city offers a wide range of options that still feel approachable on a middle income budget.

5. Sports and riverfront recreation
NBA games with the Memphis Grizzlies, college sports at the University of Memphis, and minor league baseball give sports fans plenty of live events without the premium pricing you see in some larger markets. The Mississippi Riverfront, city parks, and nearby lakes provide space for running, cycling, kayaking, and family outings that cost far less than regular big ticket entertainment.

Putting Memphis Cost of Living in Perspective

Memphis is not a perfect fit for every person or every career path. Median household income in the city is around $77,102, and the poverty rate is higher than the national average, so there are meaningful economic challenges alongside the affordability story.

Even with that context, the core numbers line up in a way that is hard to ignore.

• Overall cost of living sits roughly 10% to 14% below the US average.
  
  
• Housing costs are significantly lower, with median home prices around $271,000 compared with a national figure near $366,000.
  
  
• Groceries, utilities, and transportation all come in modestly below national averages.
  
  
• The metro population is growing slowly even as the city core remains fairly stable.
  
  

For anyone weighing a move, those numbers describe a large, culturally rich metro where every dollar of income tends to go a little farther than it would in many other parts of the country.