St. Louis Multifamily Report – Fall 2020
- Jan 06, 2021
The St. Louis multifamily market has shown resilience this year. Rents continued to improve, pushing upward by 0.3 percent on a trailing three-month basis through October, even as growth remained flat at the national level. The average rent of $999—31.7 percent less than the U.S. average—positions St. Louis well as renter demand continues its shift toward more affordable options.
Although the metro has been impacted by the loss of 82,400 jobs during the 12 months ending in September, St. Louis’ economy has made some notable strides. The unemployment rate was 5.5 percent in September, far below the national rate and continuing to improve from the peak of 11.3 percent in May. Additional challenges may be on the horizon, however. As state and local governments face decreasing tax revenues, budget cuts and reduced public spending may lead to a slower or delayed recovery.
Investment picked up in 2020, with transactions totaling $484 million through October, a nearly 35 percent increase from the same period last year. Per-unit prices jumped to $123,068, a 71 percent increase compared to 2019. However, even amid investment activity expansion, development has slowed. Fewer than 1,000 units were delivered in the first 10 months of the year, and an additional 2,239 were underway, nearly all aimed at Lifestyle renters. Few projects are expected to break ground in the coming months.