2020 Guide to St. Louis Real Estate
Nestled on the banks of the Mighty Mississippi River sits the vibrant gateway to the West, St. Louis.
Known for beer, barbecue, and the Blues, this town boasts the kind of appeal that makes it an ideal real estate investment market.
With a growing population working in the tech and creative sectors, and anchored by established brands like Anheuser-Busch, Boeing, and Emerson Electric, St. Louis seamlessly blends the new economy with powerhouse Fortune 500 entities. All of those companies translate into a highly skilled and educated workforce with money to spend.
We’ve put together your guide to the St. Louis real estate market, including both the current investment scene and future potential over the next year. You may just find that St. Louis is exactly the growth opportunity you’ve been looking for.
Global Investments have noticed many similarities in St. Louis that has made the Cleveland market in the last few years extremely strong for Real Estate investment. An influx of creative and tech workers fleeing the more expensive coastal cities will translate into steady growth for the Saint Louis metro area over the next several years. This increase, along with new corporate campuses in the city centre, is expected to result in a significant rental market and increasing property appreciation.
With high home prices keeping investors out of markets all over the US, the St. Louis housing market remains one of the more affordable cities in the country. Like Cleveland Ohio, here you can get a single family or multi family home for well under the national average, translating into solid ROI
Obviously price is important however one of the main reasons Global Investments are recommending St Louis as the next “ Cleveland” is the strong rental market.
Again we have noticed many similarities in these two cities that result in a good rental stability. There is a changing nature of Millennials when it comes to renting rather than owning which is increasing the rental demand in the city, we covered this in a previous Cleveland blog last year :
Cleveland has the University Circle but St Louis also has a reputation as one of the country’s best markets for recent college graduates.
St. Louis promises to be a winner with young, educated professionals with high income potential. The growth of the tech and biotech industries here, alongside the already-established corporate infrastructure, offers an appealing place for these Millennial and Gen-Z graduates to put down roots.
As development continues to expand throughout the city’s central corridor, many of these young professionals will delay home buying in order to decide which part of the city they want to settle in. Along with their natural tendency to delay marriage, home purchases, and other major life changes, this means a growing group of potential tenants and the rental market in general.
The large university population here is another large market predominantly made up of renters. With almost 20 colleges and universities located in and around the city, there is a perpetual need for quality rental housing.
Future projects and investment in the City
There are also many projects in the pipeline for the city of St Louis that will certainly increase its popularity and increase the house prices which is great for investors looking for capital appreciation.
Here is just a few to mention :
St. Louis Aquarium
The much-anticipated aquarium, slated to open inside Union Station next month, will be home to more than 13,000 aquatic animals, including 60 sharks and rays. The $187 million project also includes the new 200-foot St. Louis Wheel, a carousel, an 18-hole mini-golf course, a mirror maze, a ropes course, a train park, and several restaurants. The project created 500 construction jobs and is expected to bring more than 100 permanent positions.
The $1.7 billion project is the largest federal investment project in St. Louis history. Managed by the National Geospatial-Intelligence Agency, the U.S. Army Corps of Engineers, and the U.S. Air Force, the 97-acre campus in North St. Louis is being called a game-changer for the intelligence community. Slated to be operational in 2025, it will feature a 712,000-square-foot office building with a garage, visitor centre, and inspection facility.
The company, founded by St. Louis natives Jack Dorsey and Jim McKelvey, will relocate its St. Louis offices from Cortex to the former 235,000-square-foot St. Louis Post-Dispatch headquarters downtown. The move will allow the tech company to expand its workforce from 500 people to as many as 1,400.
Set to open next summer across from IKEA in Midtown, the $220 million project is transforming the former Century Electric Company site into an entertainment destination, including a food hall featuring 20 kitchens, a bar, and 500 seats. Fresh Thyme grocery plans to open its seventh local store on site, and Alamo Drafthouse Cinema will offer a unique theatre experience.
Major League Soccer Stadium
Located just west of Union Station, the proposed modern stadium will house St. Louis’ forthcoming MLS team. The partially covered sports facility will seat 22,500–25,500 visitors, with entrances on all four sides and an angular canopy—constructed of translucent material that’ll allow light to pass through—to protect fans from the elements.
The historic Armory building was once home to the 138th Infantry of the Missouri National Guard, years before hosting tennis championships and legendary concerts. Soon, the space will find new life, thanks to a $47.1 million overhaul yielding 250,000 square feet of creative office space, a restaurant, and a greenway path connection.
Ballpark Village Phase 2
The slogan for the downtown development’s $260 million second phase: “We’re bringing the village to Ballpark Village.” The project includes the Live! by Loews hotel, a Class A office building, retail, restaurant, and entertainment space, and a 29-story high-rise luxury residential tower, One Cardinal Way, scheduled for completion in 2020. The project is expected to create 1,500 construction jobs and 1,000 permanent jobs.
So if you are interested in learning more about investing in St Louis in 2020 then contact us today.
With our unique contacts and partners in St Louis we are ensuring our clients get the best choice of investment properties in the city.