The Home Buyer's Korner

Information presented should be used for educational purposes only.

August 29th, 2015

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THE GREATER MEMPHIS, TENNESSEE AREA

The Home Buyer’s Korner

Real Estate G+

Mortgage Lender

General Contractor G+

Best Cities in Shelby County

Shelby CountyEconomists and the U.S. Department of Housing and Urban Development agree: spending more than 30 percent of your income on housing costs is unsustainable and leaves home owners short on cash for food, clothing and utilities. Yet 40 percent (260,000) of renters in Tennessee are spending more than 35 percent of their income on housing, according to the Tennessee Housing Development Agency.

In a recent blog post by NerdWallet they analyzed data for the 58 Tennessee cities, towns and census tract areas of more than 10,000 residents to find the area’s most attractive places to live and answer three main questions and help house hunters in Tennessee.  Of those places, Shelby Country four cities, Arlington, Collierville, Lakeland and Bartlett had the distinction of ranking in the top ten and Germantown ranked 13th.

  1. Are homes available? NerdWallet looked at the area’s home ownership rate to determine the availability of homes. A low home ownership rate is likely a signal of competitive inventory, more options for renters rather than buyers and expensive housing. Areas with a high home ownership rate led to a higher overall score.
  2. Can you afford to live there? NerdWallet looked at median household income, monthly homeowner costs and median home value to assess affordability and determine whether residents could live comfortably in the area. They used monthly homeowner costs to measure cost of living. Areas with high median incomes and low cost of living scored higher. Thinking of buying a home yourself.
  3. Is the area growing? NerdWallet measured population growth to ensure that the area is attracting new residents and showing signs of solid growth. This is likely a signal of a robust local economy, which is another attractive characteristic for home buyers.

For more details on their methodology, please see the “Methodology” section at the end of the study.

Arlington, situated about 30 miles from downtown Memphis, is the third fastest-growing community on the NerdWallet list with an 11.9 percent population increase from 2010-2012. Boasting the second highest home ownership rate on their top 20 list at 90.7 percent, plus home ownership costs that take up just 25 percent of median household income, it’s no wonder why people want to move here. Property taxes are the second lowest in Shelby County, and job opportunities are plentiful at Arlington Industrial Park, home to multiple companies including Chem-Tainer, a bulk chemical storage tank manufacturer and Americold, a provider of temperature-controlled warehousing and logistics.

Collierville, offers its residents a mix of small-town charm and modern amenities. Just 30 miles east of Memphis, this town has a home ownership rate of 85.8 percent. Collierville homeowners spend 26.1 percent of their median monthly income of homeowner costs, and while that’s on the high end of their list, it’s still below the federal government’s 30 percent gauge of affordability. Plenty of events take place in the historic downtown such as Fair on the Square, where residents enjoy live entertainment, art and food vendors. Looking for some retail therapy? Located just off Route 385, Carriage Crossing is an open-air shopping destination with national retail stores, restaurants and local businesses. Job opportunities are available at the FedEx World Tech Center – the 140-acre software and technology development headquarters of FedEx Corp. – and ThyssenKrupp Elevator Americas, North America’s largest producer of elevators.

Lakeland is just west of Arlington, our top city for home ownership in Tennessee, and is also a suburb of Memphis. Lakeland has an 80.1% home ownership rate, and homeowner costs are 26.1% of the median household income. The city is dedicated to preserving the natural terrain even as businesses and population increase rapidly by requiring that developers set aside land for parks and greenways. The crown jewel of Lakeland’s parks system is the 65-acre International Harvester Managerial Park, where visitors can hike, bike, picnic and fish. Students here attend Shelby County Schools.

Bartlett, about 15 miles northeast of Memphis, life is good in Bartlett. It’s a city of neighborhoods, with dozens of different sections governed by the Greater Bartlett Council of Neighborhoods. The home ownership rate is high at 84.1 percent, and home owner costs take up 25.9 percent of the median monthly household income. Bartlett offers lots of opportunities for neighbors to get together, including a weekly summer farmers market, events at the Bartlett Performing Arts and Conference Center and book clubs at the public library. For home buyers who need a little extra help, United Housing Inc. has its Helping Home Buyers Program, which offers up to $15,000 in down payment assistance and closing costs for qualifying home buyers in Memphis and Shelby County.

Rank City   Home Ownership Rate Avg. Home Owner Costs Median Monthly Household Income Avg Home owner Costs Median Home Value   Overall Score for Home Owners
1 Arlington   90.7% $1,945 $7,767 25.0% $225,900   87.8
2 Spring Hill   81.2% $1,516 $6,334 23.9% $197,500   86.0
3 Mount Juliet   82.0% $1,463 $6,062 24.1% $196,200   83.9
4 Middle Valley   85.9% $1,305 $5,611 23.3% $161,400   76.3
5 Seymour   73.2% $1,112 $4,832 23.0% $152,100   70.9
6 White House   83.7% $1,385 $5,657 24.5% $177,300   69.6
7 La Vergne   76.3% $1,222 $4,608 26.5% $135,600   69.5
8 Collierville   85.8% $2,235 $8,554 26.1% $281,800   68.9
9 Lakeland   80.1% $1,872 $7,161 26.1% $232,700   66.9
10 Bartlett   84.1% $1,623 $6,269 25.9% $174,200   65.4
11 Brentwood   93.5% $2,654 $11,109 23.9% $489,700   65.3
12 Farragut   90.0% $1,850 $8,212 22.5% $315,000   64.3
13 Germantown   87.8% $2,234 $9,543 23.4% $286,100   59.3
14 Smyrna   67.3% $1,288 $4,297 30.0% $150,800   57.2
15 Kingsport   66.0% $1,043 $3,426 30.4% $128,300   55.7
16 Portland   63.5% $1,137 $4,038 28.2% $128,500   54.5
17 Soddy-Daisy   68.6% $1,152 $4,107 28.0% $137,000   53.2
18 Hendersonville   70.4% $1,605 $5,203 30.8% $197,000   53.0
19 Clarksville   57.0% $1,166 $3,942 29.6% $132,900   52.5
20 Franklin   68.2% $1,923 $6,658 28.9% $309,400   52.1

Methodology

The overall score for each city was derived from each of these measures:

  1. Home ownership rate made up 33.3 percent of the total score. A higher rate earned a higher score. The rate comes from the U.S. Census American Community Survey 5-year Estimates for all places in the state, Table DP 04.
  2. Selected monthly owner costs as a percentage of median household income made up 16.7 percent of the total score. A lower percentage earned a higher score. Monthly homeowner costs as a percentage of median household income made up one-half of the affordability score. Median household income comes from the U.S. Census American Community Survey 5-year Estimates for all places in the state, Table DP 03. Monthly homeowner costs come from the U.S. Census American Community Survey 5-year Estimates for all places in the state, Table DP 04.
  3. Median home value made up 16.7 percent of the total score. A lower value earned a higher score. Median home value made up one-half of the affordability score. Median home value comes from the U.S. Census American Community Survey 5-year Estimates for all places in the state, Table DP 04.
  4. Population change from 2010 to 2012 made up 33.3 percent of the total score. A higher percent change earned a higher score. The 2010 population came from the 2010 American Community Survey 5-Year Estimates for all places in the state, Table DP 05. The 2012 population data came from the 2012 American Community Survey 5-Year Estimates for all places in the state, Table DP 05. NerdWallet calculated the percent change.

SHELBY COUNTY HOMES FOR SALE

Livingston Homes for Sale

FIND HOMES THROUGHOUT MEMPHIS TENNESSEE

HUD FORECLOSED HOMES IN & AROUND THE GREATER MEMPHIS TENNESSEE

USDA FORECLOSED HOMES IN & AROUND THE GREATER MEMPHIS TENNESSEE

FNMA HOMEPATH FORECLOSED HOMES IN & AROUND MEMPHIS TENNESSEE

FIND MORE FORECLOSURES IN & AROUND MEMPHIS TENNESSEE

TENNESSEE HOME OWNERSHIP TOOLS

Your Home Purchasing or Refinancing & Renovation Tools,

Home Improvements, Home Renovations,

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase.

Here are just a few of the home improvements

you might consider with any Home Renovation loan

Repair or replace a roof

Install, replace or repair gutters and downspouts

Replace, repair or upgrade your HVAC system

Repair or replace plumbing

Install, repair or replace electrical systems

Kitchen remodeling (including the purchase and installation of appliances)

Bathroom remodeling, Full interior painting, Total exterior painting

Repair or replace a septic system and/or well

Disability access (wheelchair ramp, elevator, widen doorways)

Build, repair or replace deck, patio or porch

Basement waterproofing and finishing

Abatement/Stabilization of lead-based paint hazards

Replace old windows, Room additions, Finish an attic

Add a second story to your home

Replace a termite damaged sill plate (a water-damaged sill plate also)

Possible landscaping items such as correction of grading & drainage problems,

tree removal, repair a driveway and sidewalks

FHA 203K

Your Home Purchasing or Refinancing & Renovation Tool

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

FANNIE MAE HOMESTYLE

The Conventional Alternative to FHA 203K

Great for Real Estate Investors and Second Home Renovations

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

USDA RURAL DEVELOPMENT

Up to $10K for Home Improvements, Renovations or a Simple Remodel

Mortgage Loan Officers, Real Estate Agents & General Contractors are ready to assist you

A SIMPLE HOME SHOPPING INSPECTION TOOL

Organizing your home shopping experience affords a wise decision-making process.

This simple home inspection tool makes your ultimate buying decision a smart one.

To print this document click on “Open in New Window” located at the lower right corner;

click on “File”; then click on “Print”. In the center of the screen you will

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START YOUR PATH TO HOME OWNERSHIP TODAY

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