Memphis offers some of the most affordable new construction in Tennessee, with homes starting well below the state median. This guide covers active builders, communities, and market data for Shelby, Fayette, and DeSoto counties.
New Construction Homes in Memphis, Tennessee
Memphis occupies a distinctive position in Tennessee's new construction landscape. While Nashville commands the headlines for population growth and price appreciation, Memphis offers something increasingly rare in the Sun Belt: genuine affordability. New construction homes in the Memphis metro are available at price points that have largely disappeared from Nashville, Knoxville, and Chattanooga — making the city an underappreciated option for buyers who prioritize value and square footage over proximity to a booming downtown.
The Memphis metropolitan statistical area spans parts of Tennessee, Mississippi, and Arkansas, with Shelby County serving as the urban core. According to U.S. Census Bureau estimates, Shelby County's population stood at approximately 910,226 in 2025 — a modest decline from the 2020 Census count of 929,744. The University of Tennessee's State Data Center noted that Shelby County's 2024 population decrease of approximately 3,379 residents was the largest of any county in the nation that year, reflecting ongoing outmigration to the suburbs and surrounding counties. That outmigration, however, is precisely what is driving new construction activity in Fayette County (Tennessee), DeSoto County (Mississippi), and Tipton County — the suburban ring where most new home development is concentrated.
Memphis New Construction Market at a Glance
| Metric | Value | Source |
|---|---|---|
| Shelby County Population (2025) | 910,226 | U.S. Census Bureau QuickFacts |
| MSA Population (2025) | 1,341,412 | U.S. Census Bureau via FRED |
| Median Owner-Occupied Home Value | $249,100 | ACS 5-Year Estimate, 2020–2024 |
| Median Household Income (Shelby Co.) | $63,767 | ACS 5-Year Estimate, 2020–2024 |
| Building Permits, Shelby County (2024) | 2,061 | U.S. Census Bureau QuickFacts |
| Owner-Occupied Housing Rate | 54.1% | ACS 5-Year Estimate, 2020–2024 |
| Median Gross Rent | $1,232 | ACS 5-Year Estimate, 2020–2024 |
| Total Employment, Shelby County (2023) | 446,048 | U.S. Census Bureau |
*Sources: U.S. Census Bureau QuickFacts; FRED, Federal Reserve Bank of St. Louis; American Community Survey 5-Year Estimates.*
Why Buyers Are Choosing New Construction in Memphis
Memphis's economic identity is built on logistics. The city is home to FedEx's global headquarters, and Memphis International Airport consistently ranks as one of the busiest cargo airports in the world. The transportation and warehousing sector generated $11.5 billion in revenue in Shelby County in 2022, according to Census Bureau economic data — a figure that reflects the city's role as a critical node in the national supply chain. That employment base creates steady demand for housing across a range of price points.
The healthcare sector is the other pillar of Memphis's economy. St. Jude Children's Research Hospital, Methodist Le Bonheur Healthcare, and Baptist Memorial Health Care collectively employ tens of thousands of workers and generate substantial economic activity. The University of Memphis and the University of Tennessee Health Science Center add an educational dimension that supports both employment and population retention.
For buyers, the practical argument for Memphis new construction is straightforward: the dollar stretches further here than almost anywhere else in Tennessee. A buyer who can afford a 1,600-square-foot resale home in Nashville can typically purchase a 2,200-square-foot new construction home in the Memphis suburbs for the same monthly payment. The trade-off is a slower-appreciating market and a city that has faced well-documented challenges with crime and population retention — factors that buyers should research carefully before committing.
What Does a New Construction Home Cost in Memphis?
New construction in the Memphis metro is concentrated in the suburban ring rather than the city of Memphis itself. Collierville and Germantown in eastern Shelby County offer the most upscale new construction, while Bartlett, Cordova, and Arlington provide mid-range options. DeSoto County, Mississippi — particularly Southaven, Olive Branch, and Hernando — has become a major new construction destination for Memphis-area buyers who prioritize school quality and lower property taxes.
| County / Submarket | Entry-Level | Mid-Range | Upper Range |
|---|---|---|---|
| Collierville / Germantown (Shelby Co.) | $450,000 | $650,000 | $1,000,000+ |
| Bartlett / Cordova / Arlington (Shelby Co.) | $300,000 | $420,000 | $600,000+ |
| Olive Branch / Southaven (DeSoto Co., MS) | $270,000 | $380,000 | $550,000+ |
| Hernando / Horn Lake (DeSoto Co., MS) | $250,000 | $340,000 | $480,000+ |
| Fayette County, TN (Piperton, Oakland) | $280,000 | $380,000 | $520,000+ |
| Tipton County, TN (Munford, Atoka) | $260,000 | $340,000 | $460,000+ |
*Price ranges are approximate and reflect active new construction listings as of mid-2025. Prices change frequently; verify directly with builders.*
New Home Builders in Memphis, Tennessee
The Memphis market is served by a combination of national production builders and strong regional firms. The following national builders — all ranked among Builder Online's top producers — maintain active communities in the Memphis metro as of 2025.
D.R. Horton
D.R. Horton is among the most active national builders in the Memphis area, with communities in both Shelby County and DeSoto County, Mississippi. Their Express Homes line is particularly relevant in the Memphis market, offering new construction starting in the mid-$200,000s in select locations — a price point that has become exceptionally rare across most of Tennessee. Horton's volume purchasing allows them to maintain competitive pricing even as material and labor costs have risen across the industry.
Lennar
Lennar operates in the Memphis metro with communities concentrated in the eastern Shelby County suburbs and DeSoto County. Their Everything's Included® model — which bundles appliances, countertops, and smart-home features into the base price — eliminates the upgrade-pricing uncertainty that frustrates many new construction buyers. Lennar's communities in the Memphis area typically range from the upper $200,000s to the mid-$400,000s, covering the broad middle of the market where most Memphis-area demand is concentrated.
PulteGroup (Pulte Homes, Centex)
PulteGroup's Centex brand, which targets first-time and value-oriented buyers, has a meaningful presence in the Memphis suburbs. Centex communities in the Bartlett and Cordova areas have offered new construction in the $280,000–$380,000 range, serving buyers who want a national builder's construction standards and warranty without the premium associated with the Pulte Homes brand. PulteGroup's Life Tested® design process incorporates feedback from thousands of homeowners to refine floor plans and features.
For a complete list of builders active across Tennessee, visit our [Tennessee home builders directory](/builders).
Featured New Home Communities Near Memphis
Villages of Carriage Hills, Collierville (Shelby County)
Collierville consistently ranks among the most desirable communities in the Memphis metro, and new construction in the area reflects that demand. Communities near the Collierville town square offer new homes from the upper $400,000s to over $800,000, with Shelby County Schools — among the highest-rated in the region — serving the area. The town's walkable downtown, with its independent restaurants and boutiques, provides a quality-of-life amenity that distinguishes Collierville from more conventional suburban developments.
Arlington, Tennessee (Shelby County)
Arlington has emerged as one of the more compelling new construction destinations in Shelby County, offering larger lots and newer construction than the more established eastern suburbs at more accessible price points. New communities in Arlington typically range from the mid-$300,000s to the mid-$500,000s. The Shelby County Schools attendance zones in Arlington include newer facilities, and the town's ongoing commercial development has reduced residents' dependence on Germantown and Collierville for everyday needs.
Olive Branch, Mississippi (DeSoto County)
Olive Branch is the largest city in DeSoto County and one of the most active new construction markets in the entire Memphis metro. Mississippi's lower property tax rates and DeSoto County's highly rated school district have made Olive Branch a consistent destination for Memphis-area families. New construction communities range from the mid-$270,000s to over $500,000, with multiple national and regional builders active simultaneously. The commute to Memphis via Highway 78 / I-22 is approximately 20–30 minutes to most employment centers.
Hernando, Mississippi (DeSoto County)
Hernando, the DeSoto County seat, offers a more small-town character than Olive Branch while maintaining easy access to Memphis via I-55. New construction in Hernando starts in the mid-$250,000s, making it one of the most affordable new construction options within a reasonable commute of Memphis. The historic courthouse square gives Hernando a sense of place that newer suburban communities often lack.
Munford, Tennessee (Tipton County)
For buyers who prioritize space and value above all else, Tipton County — particularly Munford and Atoka — offers new construction at price points that have largely disappeared from Shelby County. Grant & Co., a well-regarded regional builder, has been active in Munford with communities starting in the mid-$400,000s for larger homes on generous lots. The trade-off is a longer commute to Memphis employment centers, typically 35–50 minutes depending on destination.
Where to Build in Memphis: Neighborhoods and Suburbs
The Memphis metro's new construction geography is shaped by two competing forces: the desire for suburban space and school quality, and the need for a manageable commute to the city's employment centers.
Eastern Shelby County (Germantown, Collierville, Bartlett, Cordova, Arlington) is where most Shelby County new construction is concentrated. Germantown and Collierville command premium prices but offer the best school options and the most established retail and restaurant infrastructure. Bartlett and Cordova offer mid-range options with reasonable commutes. Arlington is the growth edge of eastern Shelby County, with newer construction and larger lots at more accessible prices.
DeSoto County, Mississippi has become the de facto suburb of choice for Memphis-area families who prioritize school quality and lower property taxes. Southaven, Olive Branch, and Hernando collectively account for a substantial share of the Memphis metro's new construction activity. Mississippi's homestead exemption and generally lower property tax rates are meaningful financial considerations for buyers comparing DeSoto County to eastern Shelby County.
Fayette and Tipton Counties, Tennessee represent the outer ring of the Memphis metro, offering the most space and the lowest prices but requiring the longest commutes. These markets appeal primarily to buyers who work remotely, work locally within the county, or are willing to trade commute time for significantly more land and home for their money.
Financing a New Construction Home in Memphis
Memphis's lower price points mean that many buyers qualify for conventional financing with standard down payment requirements. FHA loans are also common in the Memphis market given the city's median income levels. Builder-preferred lenders typically offer rate buydowns and closing cost assistance on spec inventory — these incentives can be particularly valuable in the current interest rate environment and are worth negotiating as part of any new construction purchase.
Tennessee's Housing Development Agency (THDA) Great Choice Home Loan program is available to qualifying buyers in Shelby County and surrounding Tennessee counties, offering below-market interest rates and down payment assistance. Income and purchase price limits apply and are updated annually. For more detail on financing options specific to Tennessee buyers, see our guide to [financing a new construction home in Tennessee](/resources/financing-new-construction-tennessee).
Frequently Asked Questions About New Construction in Memphis
What is the average price of a new construction home in Memphis, TN?
New construction prices in the Memphis metro vary significantly by location. In Shelby County, new homes in the Bartlett and Cordova areas typically start around $300,000, while Collierville and Germantown command $450,000 and above. DeSoto County, Mississippi offers new construction starting in the mid-$250,000s. The median owner-occupied home value in Shelby County is $249,100 according to the U.S. Census Bureau's 2020–2024 American Community Survey.
Which builders are building new homes in Memphis right now?
As of 2025, active national builders in the Memphis metro include D.R. Horton, Lennar, and PulteGroup (Centex). Regional builders including Grant & Co. and Magnolia Homes are also active in the market. Builder activity shifts frequently; check individual builder websites for current community availability.
Is Memphis a good place to buy a new construction home?
Memphis offers some of the most affordable new construction in Tennessee, with strong rental yields for investors and genuine value for owner-occupants. The market's slower appreciation compared to Nashville is a trade-off buyers should understand. The city's ongoing challenges with crime rates and population outmigration from the urban core are real considerations, though the eastern suburbs and DeSoto County have largely insulated themselves from those dynamics.
Are there new construction homes under $300,000 near Memphis?
Yes. DeSoto County, Mississippi — particularly Hernando and Horn Lake — has new construction communities starting in the mid-$250,000s. Tipton County, Tennessee (Munford, Atoka) also has new construction in the $260,000–$300,000 range. Within Shelby County, options below $300,000 are limited but occasionally available from D.R. Horton's Express Homes line.
How does Memphis compare to Nashville for new construction?
Memphis offers significantly lower prices — often 40–50% less than comparable Nashville-area new construction — but also lower appreciation rates and a more challenging urban core. Nashville's job market is more diverse and faster-growing. Memphis's logistics and healthcare employment base is stable but less dynamic. Buyers relocating to Tennessee who prioritize value and space often find Memphis compelling; those prioritizing career growth and appreciation potential typically favor Nashville.
What is the best suburb of Memphis for new construction?
For school quality and community amenities, Collierville and Germantown are the top choices within Shelby County, though at premium prices. For the best combination of value, school quality, and new construction selection, Olive Branch and Hernando in DeSoto County, Mississippi are strong options. For buyers on a tighter budget, Arlington (Shelby County) and Munford (Tipton County) offer newer construction at more accessible price points.
For more guidance on the buying process, see our [complete guide to buying a new construction home in Tennessee](/resources/new-home-buying-guide) and our guide to [things to consider when buying a new construction home](/resources/new-construction-considerations).