St. Louis Q4 Market Insights: Tight conditions spur rent growth, support new development
Highlights:
Image
- Property fundamentals remain strong in the St. Louis multifamily market, with vacancy finishing 2022 near all-time lows and rent growth surging during the past 12 months. Multifamily deliveries are elevated, and developers are expected to remain active in the coming year.
- Vacancy dipped 30 basis points in 2022, ending the year at 4 percent. The rate inched up 10 basis points during the fourth quarter; vacancy remained in a tight range throughout the past year.
- Asking rents continue to record gains with rent growth accelerating during the fourth quarter. Area rents increased by 3.8 percent in the last three months of 2022, reaching $1,175 per month. Rents spiked 11.2 percent during the past year.
- The multifamily investment market slowed a bit in recent months, as sales velocity slowed by 10 percent from the third quarter to the fourth quarter. The median sales price in 2022 was $91,000 per unit.
