The St. Louis multifamily market achieved modest growth in the second quarter with occupancy rising slightly to 95.1%. This is the highest rate since 2001 and the increased occupancy resulted in the average monthly rent rising from $899 at the start of the year to $927. These are strong numbers for the Midwest market but is lower than the national average. Construction continues to occur with the most active submarkets being St. Clair/Madison County (Illinois) followed by St. Louis City, Central West End/Forest Park, and then Chesterfield/Ballwin/Wildwood.
Employment growth has been healthy for the region, but the economic outlook is for growth to slow down but to remain positive. The forecasts for a slight economic slowdown implies that significant increases in occupancy or rent growth might not be sustainable. The St. Louis apartment market must compete with the affordable single-family housing market and slow population growth for the region. It remains an affordable market for investors with potential growth options for small owners and large owners alike.
Employment growth has been healthy for the region, but the economic outlook is for growth to slow down but to remain positive. The forecasts for a slight economic slowdown implies that significant increases in occupancy or rent growth might not be sustainable. The St. Louis apartment market must compete with the affordable single-family housing market and slow population growth for the region. It remains an affordable market for investors with potential growth options for small owners and large owners alike.
