As Memphis leaders work to address the city's affordable housing challenges, local housing advocates and developers say expanding access to housing will require long-term investment, stronger partnerships, and more pathways to homeownership.
During this week's WKNO/Channel 10 "Behind the Headlines," Zachary Amos of Habitat for Humanity of Greater Memphis, Kelbert Fagan of Convergence Memphis, and Ron Brooks of River City Capital discussed the financial and structural barriers affecting both renters and developers across Memphis.
Amos said Habitat for Humanity of Greater Memphis has constructed nearly 650 homes over the past 43 years. Additionally, the organization provides essential home repairs for low-income seniors through its Aging in Place program. They offer 0% interest mortgages to qualifying homebuyers who earn 80% or less of the area's median income.
But Amos said affordable rental housing remains a major part of the conversation because many renters struggle to save enough money to eventually buy a home.
"When people do not have affordable rental, they can't save up for a down payment for their first home," Amos said. "And that is really the biggest barrier for individuals to buy a home today."
He said housing affordability extends beyond rent or mortgage payments alone, noting that utilities, insurance, and other housing costs contribute to the financial strain many families face.
Fagan said Convergence Memphis focuses on increasing homeownership opportunities in Memphis' Black communities by connecting residents and emerging developers with training programs, financial assistance, and housing resources.
"We believe that it's going to take every institution to come together to create a solution," Fagan said.
That collaboration becomes especially important in neighborhoods where the cost of building new housing often exceeds a property's final appraised value.
"There exists what we call an appraisal gap, where the cost to build actually is higher than what the ultimate appraisal comes in at," Amos said.
Amos pointed to Habitat's work in Uptown Memphis, where the organization has built 200 homes over the past decade. He said Habitat recently received its first appraisals in the neighborhood that matched the actual construction cost, which he described as evidence that long-term investment can help strengthen communities over time.
Brooks said collaboration among nonprofits, lenders, developers, and city agencies is essential to advancing projects, particularly in underserved areas.
"Often what gets left out of affordable housing is the ancillary sort of community around it," Brooks said. "Where's the coffee shop?"
The panel also discussed the growing role of corporate ownership in Memphis housing following the 2008 financial crisis. Amos said Memphis has a higher rate of corporate-owned housing than the national average, though the city lacks a formal rental registry to fully track those properties.
While Amos acknowledged that some investors rehabilitate distressed properties and help stabilize neighborhoods, he said many residents remain uneasy about homes increasingly being treated as financial assets instead of opportunities for ownership.
"There is a very legitimate tension that people have that says, well, that's the American dream that's owned by somebody who's just looking at it on a spreadsheet," Amos said. "Like this is supposed to be someone's life, someone's dream, and it's just a number to someone else."
