St. Louis Housing Market: Stats and Trends

In recent months, the St. Louis real estate market has been characterized by limited supply, competitive demand for rentals, and high prices. As a result, rental homes are in demand, and real estate investors are in luck.

According to Redfin, the average home in St. Louis sold for $214K in May 2022, which is a 1.7% bump compared to last year. A whopping 830 homes were sold in St. Louis throughout that same month. The average property was sold around 4% higher than the list price, and the offers closed in an average of 7 days. On the high end, certain homes  sold for up to 12% above asking price.

As such, the St. Louis housing market is still a seller’s market, meaning there are more buyers than there are homes for sale. This makes St. Louis a great rental investment, as you’re highly likely to get significant ROI (return on investment) while many would-be buyers wait for prices to drop.

Let’s explore some of the additional key trends and stats that make the St. Louis housing market so exciting.

Population Growth

Over the last decade, the population of St. Louis has increased by only 1.2%. In recent years, however, families from other states have started migrating to St. Louis because of the more affordable costs and the excellent quality of life compared to those bigger cities. 

Essential population statistics:

• St. Louis proper has a population of 300,000. The metropolitan area, though, is home to over 2.8 million people.
• The city population has gone through a 0.12% decline since the prior year – but has seen a 1.2% growth over the last decade.
• It’s the 7th largest metro area in the Great Lake Region and the second-largest city in Missouri.
• The median household income in this city is $66,417, and per capita income is about $37,365.
• Metropolitan St. Louis comprises Jefferson, Franklin, Lincoln, and St. Louis counties in Missouri, as well as Clinton, Bod, Monroe, and Madison counties.

St. Louis Job Market

While employment rates lag nation-wide post-COVID 19, St. Louis’ job market shows promise. According to Data-USA, the local job market has grown by just 0.02% in the last year. While certainly a small figure, the important takeaway is that employment numbers are trending in the right direction, however slowly. In fact, the unemployment rate in the St. Louis metropolitan statistical area (MSA) is down to a mere 3.2% – with most employment sectors on the rebound – according to the report by The U.S Bureau of Labor Statistics (as of Oct 2021).

Essential employment statistics:

• According to the Federal Reserve Bank of St. Louis, the GDP of the St. Louis MSA is almost $171.5 billion, which is a 23% uptick over the last decade.
• The employment rate has grown by 0.02% over the last few years, and the metro area is home to over 1.4 million current and potential employees.
• The median household income has grown 6% in recent years, and property values have increased by 0.02% over the last year.
• Aerospace, food processing, chemicals, biotechnology, electrical equipment manufacturing, printing, and publishing are among the biggest industry sectors in St. Louis.
• As of Oct 2021, the unemployment rate in St. Louis is just 3.2%, with sectors like manufacturing, construction, leisure and hospitality, professional and businesses experiencing rapid growth.
• The largest job providers are Mercy, Washington University, BJC HealthCare, SSM Health, and Boeing Defense.

Real Estate Market In St. Louis

The real estate market in St. Louis is booming, with the local real estate experts recommending buying property sooner rather than later. A report from KSDK TV stated that home seekers are looking to take advantage of the still-low interest rates and buy houses, the values of which are predicted to skyrocket in the future.

Single-family homes in St. Louis are met with strong demands from multiple buyers. It’s becoming a common occurrence, especially in the popular neighborhoods, according to the St. Louis Business Journal.

Essential real estate market statistics:

• St. Louis’s Home Value Index is $173,968 through May 2022, according to Zillow.
• Home values in St. Louis have seen a boost of 12.1% through the past year.
• Home values in St. Louis shot up by a total of 46% in the last 5 years.
• As indicated by the latest statement by St. Louis REALTORSⓇ, the median cost of a single-family house is $275,000, which is an increase of 3.8% from the previous year.
• Houses spend about 19 days on the market compared to 23 days last year.
• Houses are being sold faster, and pending sales have decreased by 9.9% in the last year.
• Those looking to unload properties continue to reap benefits from an array of seller-friendly factors, like appealing mortgage rates and low supply-to-demand ratios.

Rental Market In St. Louis

WalletHub called St. Louis’ rental market one of the finest there is. Their research analyzed the main factors home buyers use, such as job and population growth, position in the housing market, and preferences in renting or buying a house.

Essential rental market statistics:

• According to recent research by Zumper (June 2022), the average rent for a 3-bedroom home was $1,397 per month.
• Rent rates have fallen by 6% compared to last year.
• Rents for 3-bedroom properties have increased by 28% over the last 3 years.
• 54% of the total occupied housing units in the metropolitan area are renter-occupied.
• Some of the more affordable areas include Mark Twain I-70 Industrial and Walnut Park East, where the rents are $865 or less per month.
• The most expensive areas include Wydown Skinker, Downtown St. Louis, and Central West end, where average rents are in the $1,995-$2,494 range per month.

Housing Affordability In St. Louis

St. Louis is one of the most affordable housing markets in the country. The median cost of a home in St. Louis is around $160K. The general price trend is $105 to $120 per square foot, and many single-family homes go for less than $100K. Even some of the more expensive areas have properties coming in at under $500K. 

Kiplinger even published a recent article where it awarded St. Louis an affordability score of 3 out of ten, on an index where 1 represents affordable markets and 10 represents high-cost ones.

Affordability reports:

• The cost of homes has declined by 3.3% after the last housing market peak in 2006.
• After the housing market crash in 2012, house prices have shot up by 58.1%.

Quality Of Life In St. Louis

The quality of life in St. Louis is unsurprisingly quite high. The affordable living cost and decent salaries both play a major role in keeping these residents content.

Essential quality of life statistics:

• St. Louis was ranked as the 70th best city to grow your company and career in, by Forbes.
• It received a high rating from Niche.com for its living cost, outdoor activities, and nightlife.
• Recent research by U.S. News & World Report finds that Missouri is one of the best states to spend the rest of your life in.
• St. Louis boasts a lower cost of living compared to other Midwestern cities.

Wrapping Up

It’s clear that St. Louis offers a rich and promising rental market. After all, there are countless compelling benefits for investors and residents alike! The city also has plenty of growth potential, indicating unlimited potential for your real estate portfolio.

Get Started Buying Homes With Evernest

Whether you’re purchasing one St. Louis home or one hundred, you don’t have to go it alone. 

If you’re ready to buy your first (or next) investment property, here are 3 steps to get started today:

• Subscribe to our podcast: The Evernest Real Estate Investor Podcast—for all things real estate investing, being a landlord, growing your portfolio, and more. 
• Find a property: Make sure you sign up for our Pocket Listings to get notified of all the deals that come across our desk daily. 
• Get an investor-friendly agent: We can help with that—we would love to help you buy your next rental property investment.