average rent
average occupancy rate
ytd sales volume
YoY rent change
yoy occupancy change
individual transactions
QUARTERLY DEMAND
YTD: 423
QUARTERLY COMPLETIONS
YTD: 831
Average Monthly Mortgage Payment
Average Monthly Rent
The St. Louis multifamily market demonstrated robust stability in its fundamentals, sustaining a healthy occupancy rate despite an uptick in supply. Over the 12 months ending in June 2023, occupancy saw a modest decrease of 100 basis points, resulting in a still-strong rate of 94.9%. Although supply outpaced demand, five of St. Louis’s ten submarkets showed improvements in their occupancy rates over the quarter. The Mid-St. Louis County submarket reported the largest quarterly increase, with its occupancy rising 80 basis points to 94.7%. Notably, the Chesterfield/Ballwin/Wildwood submarket held the highest occupancy rate at 96.6%.
In Q2 2023, the St. Louis apartment market observed a year-over-year increase of 4.6% in average rents for new leases, rising to $1,251 per month. Despite a moderation in rent growth – a trend mirrored across most other U.S. markets – this increase significantly outperformed the market’s historical average growth rate of 3.3%. Notably, St. Louis ranked 10th in rent growth among the top 50 U.S. apartment markets during this quarter. Delving into submarket performance, the St. Clair/Madison Counties, South St. Louis County/Jefferson County, and Northeast St. Louis County submarkets experienced the most considerable annual rent increases, ranging between 7.4% and 7.6%. The most expensive submarket was Mid St. Louis County, where average rents exceeded $1,600 for the first time.
| Submarket | Average Occupancy | Annual Occupancy Change | Average Monthly Rent | Annual Rent Change |
|---|---|---|---|---|
| Central West End/Forest Park | 93.8% | -2.1% | $1,596 | 3.2% |
| Chesterfield/Ballwin/Wildwood | 96.6% | -1.6% | $1,408 | 3.7% |
| Florissant/Hazelwood | 93.8% | -1.5% | $984 | 2.0% |
| Maryland Heights/Creve Coeur | 95.0% | -2.6% | $1,285 | 7.2% |
| Mid St. Louis County | 94.7% | -0.7% | $1,607 | 2.6% |
| Northeast St. Louis County | 91.4% | -0.9% | $813 | 7.6% |
| South St. Louis County/Jefferson County | 97.0% | -0.9% | $1,055 | 7.4% |
| St. Charles County | 95.7% | -1.7% | $1,348 | 2.9% |
| St. Clair/Madison Counties | 97.1% | -0.6% | $1,258 | 7.4% |
| St. Louis City | 92.3% | 2.2% | $1,203 | 4.3% |
| St. Louis, MO-IL | 94.9% | -1.0% | $1,251 | 4.6% |
Units Under Construction
Units UC Delivering In the Next 4 Quarters
In Q2 2023, individual multifamily asset trades in St. Louis totaled $328.5 million. This figure represents a 49% decrease compared to the $647.9 million in transactions during the same period in 2022. However, it’s important to view this within a broader historical context. Despite the decrease in sales activity compared to 2022, the trade volume for the first half of this year surpasses that of the first half in six of the last ten years.
* Trailing 4Q average PPU
* Preliminary Data from RCA – Individual transaction $2.5M +
According to preliminary data from the Bureau of Labor Statistics, the unemployment rate in St. Louis was 3.0% in May, below the U.S. average of 3.5%. Over the course of the previous year, employment in the metro expanded by 1.4%, equating to an increase of 18,500 positions. The leisure and hospitality sector witnessed the most significant growth, adding 10,800 new jobs, a rise of 7.5%. This was closely followed by the education and health services sector, which added 5,300 new roles.
May Annual Jobs Created
May 23 Employment growth
May 23 Unemployment rate
3.4% us may rate
Change from May 2022
to May 2023: 10,800
Percent Change: 7.5%
Change from May 2022
to May 2023: 5,300
Percent Change: 2.0%
Change from May 2022
to May 2023: 2,700
Percent Change: 2.3%
Change from May 2022
to May 2023: 2,500
Percent Change: 1.6%
Change from May 2022
to May 2023: 2,300
Percent Change: 1.0%
| Sector | Change from May 2022 to May 2023 | Percent Change |
|---|---|---|
| Leisure and hospitality | 10,800 | 7.5% |
| Education and health services | 5,300 | 2.0% |
| Manufacturing | 2,700 | 2.3% |
| Government | 2,500 | 1.6% |
| Professional and business services | 2,300 | 1.0% |
| Other services | 1,500 | 2.8% |
| Trade, transportation, and utilities | 400 | 0.2% |
| Information | -400 | -1.4% |
| Financial activities | -1,500 | -1.5% |
| Mining, logging, and construction | -5,100 | -6.8% |
According to preliminary data from the Bureau of Labor Statistics, the unemployment rate in St. Louis was 3.0% in May, below the U.S. average of 3.5%. Over the course of the previous year, employment in the metro expanded by 1.4%, equating to an increase of 18,500 positions. The leisure and hospitality sector witnessed the most significant growth, adding 10,800 new jobs, a rise of 7.5%. This was closely followed by the education and health services sector, which added 5,300 new roles.
May Annual Jobs Created
May 23 Employment growth
May 23 Unemployment rate
3.4% us may rate
| Sector | Change from May 2022 to May 2023 | Percent Change |
|---|---|---|
| Leisure and hospitality | 10,800 | 7.5% |
| Education and health services | 5,300 | 2.0% |
| Manufacturing | 2,700 | 2.3% |
| Government | 2,500 | 1.6% |
| Professional and business services | 2,300 | 1.0% |
| Other services | 1,500 | 2.8% |
| Trade, transportation, and utilities | 400 | 0.2% |
| Information | -400 | -1.4% |
| Financial activities | -1,500 | -1.5% |
| Mining, logging, and construction | -5,100 | -6.8% |
Amidst an uptick of new units, the St. Louis apartment market seems to be faring well. With nearly every submarket expected to see positive demand over the next year, there’s little cause for concern. Leading the charge are the St. Louis City and St. Charles County submarkets, with a combined projected absorption rate of 1,511 units, accounting for nearly 60% of all units. While market dynamics may fluctuate, the impact on rent growth and occupancy is likely to be minimal. Looking beyond the second quarter, strong market fundamentals and consistent demand point to a stable long-term outlook for St. Louis, even amid uncertain market conditions.
