October 9, 2023

St. Louis 2Q23 Multifamily Market Insights Report: Construction active but slower than 2022 pace

Highlights:

Operating conditions in St. Louis were somewhat mixed during the second quarter as vacancy continued to tick higher while asking rents advanced. Developers remain active, although construction has lagged the pace recorded in 2022.
Area vacancy rose 20 basis points in the second quarter, reaching 4.4%. The rate has trended higher in each of the past three quarters and is up 30 basis points year over year.
Asking rents inched higher in recent months after a sluggish start to the year. Rents in St. Louis rose 0.5% during the second quarter to $1,179 per month. During the past 12 months, area rents increased by 5.5%.
Transaction volume in the local multifamily investment market has remained limited to this point in 2023. Transaction totals are down 60% from one year ago, while the median price has dropped 9%.