March 30, 2023

St. Louis Q4 Market Insights: Tight conditions spur rent growth, support new development

Highlights:

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.