average rent
average occupancy rate
ytd sales volume
YoY rent change
yoy occupancy change
individual transactions
QUARTERLY DEMAND
YTD: 612
QUARTERLY COMPLETIONS
YTD: 1,913
Average Monthly Mortgage Payment
Average Monthly Rent
The St. Louis multifamily market displayed robust fundamentals, maintaining a solid occupancy rate despite an increase in supply. Over the year ending in September 2023, occupancy experienced a modest decline of 150 basis points, landing at a strong rate of 94.4%. Even as supply outstripped demand, four out of ten St. Louis submarkets exhibited robust occupancy rates exceeding 95.0%. The St. Clair/Madison Counties submarket led the way with the highest occupancy rate, registering at 97.5%. Analyzing by asset class, A, B, and C properties clustered closely with occupancy rates ranging from 93.2% for class C properties to 94.9% for class A properties.
St. Louis exhibited a favorable trajectory in apartment rents during the third quarter of 2023, achieving a year-over-year growth of 3.1% and securing the 8th position for rent growth among the top 50 US apartment markets for this quarter. This outperformance stands in contrast to many other U.S. apartment markets, which are wrestling with the ramifications of heightened supply levels that have triggered a downturn in rents. The Maryland Heights/Creve Coeur submarket emerged prominently, recording a robust rent increase of 6.8% overall, with Class A rents in this submarket witnessing a remarkable ascent of 9.5%, equating to a rental rate of $1,599 per month. In a noteworthy shift, the Central West End/Forest Park submarket outshone Mid St. Louis County, becoming the priciest submarket in the third quarter with average rents advancing beyond $1,666.
| Submarket | Average Occupancy | Annual Occupancy Change | Average Monthly Rent | Annual Rent Change |
|---|---|---|---|---|
| Central West End/Forest Park | 93.3% | -1.5% | $1,666 | 2.7% |
| Chesterfield/Ballwin/Wildwood | 96.3% | -0.8% | $1,422 | 1.6% |
| Florissant/Hazelwood | 92.9% | -1.7% | $966 | 0.3% |
| Maryland Heights/Creve Coeur | 95.0% | -1.2% | $1,333 | 6.8% |
| Mid St. Louis County | 93.8% | -1.6% | $1,652 | 1.9% |
| Northeast St. Louis County | 90.8% | -1.5% | $818 | 6.0% |
| South St. Louis County/Jefferson County | 96.6% | -1.0% | $1,074 | 5.8% |
| St. Charles County | 94.9% | -1.4% | $1,349 | 1.4% |
| St. Clair/Madison Counties | 97.5% | -0.1% | $1,374 | 6.2% |
| St. Louis City | 90.9% | -4.1% | $1,225 | 0.5% |
| St. Louis, MO-IL | 94.4% | -1.5% | $1,277 | 3.1% |
Units Under Construction
Units UC Delivering In the Next 4 Quarters
As of the third quarter’s close, St. Louis recorded a cumulative multifamily asset transaction volume of $345.9 million for the year, signaling a marked 57.3% descent from the $810.7 million tallied in the comparable timeframe of 2022. However, when juxtaposed against a wider historical spectrum, the present transaction volume reverberates with the trading cadence observed in the pre-pandemic era. The transactional activity predominantly stemmed from garden-style property sales, orchestrated largely by private investors. Concurrently, the market has been garnering escalating attention from institutional investors, with their acquisition activity catapulting 30% above the recent five-year average, hinting at a burgeoning institutional allure towards St. Louis’s multifamily market.
*Most Active Buyers and Sellers are based on the sale volume of apartment units.
* Trailing 4Q average PPU
* Preliminary Data from RCA – Individual transaction $2.5M +
Continuing on a path of modest yet steady economic growth, St. Louis consistently exhibits strong activity in key sectors such as hospitality, manufacturing, healthcare, and logistics. The latest data from the Bureau of Labor Statistics shows a 3.6% unemployment rate in the metro area as of July, slightly below the national average of 3.8%, alongside a 2.0% employment uptick over the past year, adding 27,600 jobs. Notably, the leisure and hospitality sector led with a significant 7.9% growth, equating to 11,800 new positions, while the education and health services sector saw a 3.1% increase, contributing an additional 8,100 roles. The affordable cost of living coupled with a vibrant job market makes St. Louis an attractive location for both businesses and residents. The city was recently recognized as one of the top places to live in the United States by U.S. News & World Report and serves as the headquarters for several Fortune 500 companies, including industry giants like Emerson Electric, and Anheuser-Busch InBev.
July Annual Jobs Created
July 23 Employment growth
July 23 Unemployment rate
3.8% us july rate
| Sector | Change from May 2022 to May 2023 | Percent Change |
|---|---|---|
| Leisure and hospitality | 11,800 | 7.9% |
| Education and health services | 8,100 | 3.1% |
| Manufacturing | 2,500 | 2.1% |
| Trade, transportation, and utilities | 1,300 | 0.5% |
| Financial activities | 700 | 0.7% |
| Professional and business services | 400 | 1.8% |
| Other services | 300 | 5.4% |
| Information | -600 | -2.0% |
| Government | -1,100 | -0.8% |
| Mining, logging, and construction | -2,100 | -2.8% |
The cost-of-living index in St. Louis, MO, stands at a favorable 89.1, indicating a market more affordable than the national standard. The housing sector significantly contributes to this affordability, with a housing index of 78.3 and a median home sales price of $266,200. When juxtaposed against another Midwest nucleus like Chicago, IL, St. Louis emerges as a more budget-friendly option, slashing housing expenses by 47.3% and transportation costs by 19.6%. These financial advantages render St. Louis an economically attractive locale for a diverse demographic.
89.1
$2,093
78.3
100.3
94.3
$266,200
The “Cost of Living” index score provides a comparative assessment of the relative expense involved in maintaining a standard of living in a specific area, benchmarked against a national index score of 100.
Source: COLI; BLS; Consumer Price Index for All Urban Consumers (CPI-U): Selected areas, all items index, July 2023
Compared to its peers, the St. Louis market is showcasing commendable performance, particularly in terms of its rental growth—ranking it an impressive 8th among the largest 50 markets—and maintained occupancy rates, even in the face of uncertain market conditions. Despite the influx of new units, the St. Louis apartment market seems to be holding its ground effectively. Nearly every submarket is forecasted to see positive demand in the upcoming year, minimizing concerns. Leading this activity is the St. Louis City submarket, with a projected absorption of 1,111 units, representing nearly 44% of all units. While market dynamics may display some variability, the impacts on rent growth and occupancy are expected to be marginal. Looking beyond the third quarter, the blend of solid market fundamentals and steadfast demand suggests a stable long-term outlook for St. Louis, even amid unpredictable market scenarios.
