St. Louis Q3 Multifamily Market Insights: Vacancy remains tight, even as supply growth continues

Highlights:

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• Property fundamentals for St. Louis apartments improved in the last three months as local vacancies fell to a cyclical low, and rents continued to trend higher. Apartment construction remains active, and deliveries will be elevated through next year.
• Continued renter demand has helped push vacancy lower. The vacancy rate fell by 20 basis points during the third quarter to 3.9 percent. Year over year, the rate has improved by 70 basis points.
• Local rents continued to increase in the last three months. Asking rents advanced 1.3 percent during the third quarter, reaching $1,132 per month. During the past 12 months, rents have jumped 8 percent.
• Sales velocity slowed during the third quarter, and fewer properties have changed hands year to date than traded in 2021. The median sales price to this point in the year is approximately $91,500 per unit.

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