By Alexandra Pacurar
Following the path of other Midwestern metros, St. Louis is slowly transforming from an industrial center into a modern city with solid job gains in the health-care, business and technology sectors. This, in turn, has pushed up demand for both suburban office space and highly amenitized urban apartments, benefiting the multifamily market.
St. Louis added 21,100 jobs in the 12 months ending in July, more than 70 percent of which were in high-paying sectors. Local authorities, investors and the city’s creative, skilled workforce built a vibrant startup ecosystem that drew in more than $72 million in venture capital in the third quarter alone, according to data from PitchBook and the National Venture Capital Association. Meanwhile, the hospitality sector is adapting to the metro’s growing accommodation needs. Several historic buildings in downtown St. Louis will reopen as hotels, while Loews Hotels & Co. announced plans to develop its first property in the metro as part of the $260 million Ballpark Village expansion. The mixed-use development located in the city’s core will also include residential and office components.
With more than 3,300 units under construction, St. Louis follows the national trend of renewing its well-located, urban residential stock. With demand expected to stay healthy, the new wave of supply should keep rent hikes moderate. Yardi Matrix forecasts a 1.8 percent rent growth for St. Louis in 2017.