$910 1Q 2024
2.2%
95.7% 1Q 2024
-80 BASIS POINTS
-2.3% (FEB 2024)
0.3% (FEB 2024)
* Please note that these employment figures have been adjusted for seasonal variations and are based on Moody’s Analytics forecast as of January 1, 2024.
** Please note that these unemployment rates are estimates that have not been adjusted for seasonal variations, and they are derived from Moody’s Analytics forecast as of January 1, 2024.
QUARTERLY DEMAND
QUARTERLY COMPLETIONS
Apartment demand surged in the first quarter of 2024 in the Springfield, MO multifamily market, with 184 units absorbed. This marked the highest first-quarter total in the past decade, excluding 2021, which can be viewed as an anomaly due to the reopening of the U.S. economy following pandemic lockdowns. Although absorption did not surpass the number of new units delivered during the same period, the gap was small enough to minimize any significant impact on occupancy rates, as was the case throughout 2023.
Springfield’s apartment inventory expanded by 240 units in the last quarter, all of which were delivered in the Greater Greene County submarket. As of April, there are 631 units currently under development, with about 530 set for delivery over the next four quarters. After that, the completion schedule drops sharply, with only 100 units planned for delivery beyond the first quarter of 2025. The majority of deliveries over the next four quarters will be concentrated in the Greater Greene County, Christian County, and Southwest Springfield submarkets.
Despite a year-over-year decline of 80 basis points, Springfield, MO maintains an occupancy rate above both the U.S. average and its own pre-pandemic 10-year average, ending the first quarter at a robust 95.6%. While rental demand hasn’t exceeded new deliveries, it’s been strong enough to prevent significant declines in occupancy.
This stability is consistent across most Springfield submarkets, with all but one reporting occupancy rates above 95%. Webster and Polk Counties stood out with rates exceeding 98%. North Springfield also saw strong demand as renters focused on new properties in the area, leading to one of the highest occupancy rates in the metro at 97.6%. Although the pace of new deliveries is expected to slow, the overall market occupancy rate is anticipated to remain above 95% throughout the year.
Springfield, MO, continues to surpass the national benchmark for rent growth. In the first quarter of 2024, the local market displayed notable resilience in the face of a broader market slowdown at the national level. While the U.S. overall experienced a modest 0.9% annual increase, Springfield recorded a robust 2.2% year-over-year rise, bringing the average rent for new leases to $910.
As a lower-cost market, Springfield maintains a competitive edge over regional counterparts like Kansas City, St. Louis, and Louisville, particularly in the current climate where moderate-income renters are feeling the strain of rising living costs. With its growing reputation as a lifestyle market due to proximity to the Ozarks, Springfield is projected to see rent growth accelerate to 3.7% by the end of 2024, continuing its upward trend into 2025, and reaching 4.6% in the latter half of the year.
Average Monthly Mortgage Payment
Average Monthly Rent
Please note that the income and expense data presented in this section is sourced from third-party providers. Our firm does not provide any warranty or guarantee as to the accuracy or reliability of this information. We recommend that users exercise their own discretion and professional judgment when interpreting and utilizing this data.
| Income Assumptions | Value / Unit Past 3 Years | Prior Full Year | Year Change (%) |
|---|---|---|---|
| Effective Gross Income | $10,658 | $10,566 | -0.9% |
| Operating Expenses | Value / Unit Past 3 Years | Prior Full Year | Change |
|---|---|---|---|
| Real Estate Taxes | $595 | $538 | -9.6% |
| Property Insurance | $383 | $421 | 9.9% |
| Utilities | $480 | $465 | -3.1% |
| Repairs and Maintenance | $498 | $494 | -0.8% |
| Management Fees | $490 | $485 | -1.0% |
| Payroll & Benefits | $921 | $953 | 3.5% |
| Advertising & Marketing | $81 | $75 | -7.4% |
| Professional Fees | $79 | $95 | 20.3% |
| General & Administrative | $593 | $497 | -16.2% |
| Other Expenses | $153 | $140 | -8.5% |
| Total Operating Expense | $4,273 | $4,163 | -2.6% |
| Value / Unit Past 3 Years | Prior Full Year | Change | |
| Net Operating Income | $6,385 | $6,403 | 0.3% |
|---|
Springfield, MO has recently undergone its most significant development surge in decades, yet the multifamily market remains strong with the average occupancy rate remaining above 95%. This trend is expected to continue into the next year, supported by strong demand for apartments. With average asking rents below $1,000 per month, Springfield’s affordability further bolsters its appeal.
Over the past five years, the market’s population has grown by 4%, and household numbers have increased by 9.7%, reflecting its vitality. Key industries such as healthcare, manufacturing, and education underpin this robust economy. Major corporations like Bass Pro Shops and O’Reilly Auto Parts also contribute, positioning Springfield as a central business hub in the Ozarks region. Its combination of a strong economy, low cost of living, and strategic location near the Ozarks positions Springfield an attractive destination for young professionals and families alike.
