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Market Report

St. Louis Multifamily Market Report

2024 Investment Forecast

New Units are Concentrated in Specific Submarkets;
Outer Areas Present New Investment Opportunities

Central vacancy hindered by new supply, while outer suburbs stay tight. Substantial rent gains over the last three years, in addition to persistent inflation, have placed a strain on household budgets. In St. Louis, the ratio of gross monthly income spent on apartment rent rose last year to the highest annual level since at least 2000, reaching 21 percent. As such, fewer households are likely to form due to financial reasons, easing the pace of rent growth to a more sustainable level of 1.6 percent in 2024. Supply additions — which reach a quarter-century high this year — will place some upward pressure on vacancy. The CBD, encompassing the Central West End, Forest Park and downtown St. Louis, is slated to receive nearly 45 percent of new stock in 2024. These urban areas may note upward vacancy adjustments, while suburban submarkets with fewer new projects coming online, such as South St. Louis and Jefferson counties, are likely to stay tight through the near-term. Buoyed by leases signed in suburban areas, total occupied stock in St. Louis will still reach an all-time high by year-end, despite a climbing vacancy rate.
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