- Multifamily property conditions in St. Louis softened a bit at the start of 2021, and the local labor market will likely require a few more quarters to return to full employment. Even as vacancy has inched higher, rents are posting modest gains.
- Vacancy reached 5.5 percent during the first quarter, 90 basis points higher than one year ago. The pace of new construction has been consistent in recent years, but absorption is lagging earlier periods.
- Area asking rents have increased 1.9 percent year over year, finishing the first quarter at $1,015 per month. Rents posted their strongest gains in the past four quarters at the start of 2021, setting the stage for additional increases.
- The pace of sales to start 2021 closely tracked levels from one year earlier. There was a change in the mix of properties that sold, however, with activity concentrated in Class A projects. The median price reached $225,100 per unit, while properties traded with cap rates between 5 percent and 5.5 percent.