Market Report
St. Louis Multifamily Market Report
2025 Investment Forecast
Steady Rent Growth May Boost Investor Activity;
Demand Underpinned by Renter Demographic
CBD rounding the bend as stalwart suburbs bolster market. The St. Louis apartment sector enters 2025 on the back of strong suburban performance. Vacancy in the suburbs ended last year on par with the average across the five years leading up to the pandemic, aided by sub-5 percent availability in St. Charles County, the South St. Louis-Jefferson County area and the Chesterfield-Ballwin-Wildwood area. Headwinds are stronger in the central business district, however, where vacancy ended last year near 9 percent. Net absorption here turned the corner into positive territory entering 2025, with projects such as Isreal Chemicals Ltd.’s fourth battery material manufacturing plant in North St. Louis to create new jobs and demand for housing in and around the city proper. Overall, a large and growing education and health services sector in the market is supporting improving operations for Class B and C rentals, in particular, while fewer completions anticipated in the near future will allow the luxury segment to stabilize.
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