St. Louis Q3 Multifamily Market Report: Vacancy Decline Fueled by Absorption Spike
Highlights:
- Renter demand for St. Louis multifamily properties surged during the third quarter, driving the vacancy rate lower and pushing rents higher. The market should sustain the momentum that was recorded after midyear, with employers forecast to increase hiring activity in the coming quarters.
- Multifamily vacancy fell 70 basis points during the third quarter with the rate reaching 4.5 percent. The rate has reached its lowest point since 2016; year over year, vacancy has declined 30 basis points.
- Asking rent growth accelerated in the third quarter, spiking 3 percent to $1,048 per month. Year over year, rents have advanced 4.2 percent.
- The investment market gained momentum during the third quarter. The number of properties that sold accelerated, prices have increased, and cap rates have compressed. The median price to this point in 2021 is $115,800 per unit, more than doubling the median price from 2020.
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