September 28, 2022

St. Louis Q2 Multifamily Market Report: Operating conditions remain strong at midyear

Highlights:

After an extended stretch of improving market fundamentals, apartment conditions were somewhat mixed in St. Louis during the second quarter. Vacancies ticked higher after reaching a record low, but rents continued to push higher.
With the pace of deliveries of new units accelerating, local vacancy inched up just 10 basis points in the second quarter to 4.1 percent. Prior to the second quarter, the rate had tightened in each of the preceding four quarters. Year over year, vacancy has declined by 110 basis points.
Asking rents rose again, following a spike at the start of the year. Average rents advanced 1.6 percent in the second quarter to $1,118 per month. The extended trend is for higher rents. Year over year, apartment rents are up 9.8 percent.
Multifamily sales activity was steady thus far in 2022. The median sales price to this point in the year is $136,900 per unit. Cap rates averaged roughly 4.8 percent during the second quarter.