Place, property, price and potential: why St. Louis is the smart choice for investors

Place, property, price and potential: why St. Louis is the smart choice for investors

As the second largest city in Missouri, St. Louis has a huge amount to offer when it comes to boosting your property portfolio

Discovering an area that strikes the necessary balance between cost-effectiveness and tenant demand is like finding gold in the Mississippi River – which is why we are excited to be offering buy-to-let properties in St. Louis, Missouri, where the market is currently showing significant investment potential.

St. Louis: Rome of the West

Located in the east central area of Missouri on the Mississippi River, St. Louis is a thriving US hub. Among its many prominent manufacturing industries are automobiles, aircraft and space technology, metal fabrication, beer, steelmaking, chemicals, food processing, and storage and distribution.

The city is home to several major corporations including Express Scripts, Peabody Energy, Ameren, Ralcorp, and Sigma-Aldrich, as well as a large medical and research community. It also has three professional sports teams: the St. Louis Cardinals of Major League Baseball, the St. Louis Blues of the National Hockey League, and the St. Louis Rams of the National Football League.

With so much to see and do in the city, it is little ownder that the St. Louis metropolitan area has seen its population grow to 2,913,673; the largest in Missouri and one of the largest in the United States

But what does this mean for investors? Here’s what you need to know about the current state of the housing market in 2019.

St. Louis’ Real Estate Market Remains Affordable

While the latest data suggests that house prices have spiked in many parts of the country this year, St. Louis is NOT one of them – with a real estate market that continues to be one of the most affordable in the country.

A St. Louis real estate investor can buy a rental property for less than $40,000 and still get a great return on investment. Research from Business Insider found that property prices in Missouri were the 7th most affordable in the United States. House prices averaged $122 per square meter, compared to areas like Washington DC and Hawaii where the median price per square meter came in at upwards of $500.

Yet the city also offers a great return on investment. Independent study estimates that St. Louis home values have risen by a more measured 2.8% over the past year and predicts that they will rise 5.7% in 2019. This indicates that St. Louis investment properties are seeing steady growth and real estate appreciation, making the St. Louis housing market profitable as a long-term investment.

Job Market and Population Growth Trends

For many years, growth in the St. Louis housing market was limited by a relatively slow and sluggish job market. But this has changed dramatically in recent years. A study by Glassdoor, one of the world’s largest job and recruiting sites, found that out of the 50 largest metropolitan areas in the US, St. Louis was the 2nd best city for jobs in 2018, coming second only to Pittsburgh.

This is good news for those looking to invest in real estate as the anticipated increase in demand indicates that there will be a steady growth in the rental market.

The St. Louis housing market accommodates almost 3 million people, making it the 2nd largest city in Missouri and the 20th largest metropolitan area in the US. One of fastest-growing sectors of the city’s rental market are college students and graduates. In fact, St. Louis is one of the best cities in the US for recent college graduates, supporting Global Investments’ own study on the changing nature of the buy-to-let market and the increasing popularity of renting among young people. See our recent blog post here for more this.

Another recent study found that the average down payment for a St. Louis resident is 15%, which is another factor contributing to the higher number of renters in the city. For St. Louis real estate investors, this translates into a strong demand for rental properties. Buying to let in St. Louis now can result in a healthy cash flow and a strong return on investment in the future.

One of the many things to consider before buying investment properties in any housing market is to check whether or not it’s landlord-friendly. Not all states in the US have equal rental laws and regulations. However, Missouri is far more landlord-friendly than other states in the Midwest – notably Illinois. 

The Bottom Line

At Global Investments, our assessment is that the current market conditions mean that now is an excellent time to be buying rental properties in the St. Louis real estate market. Property investors can find houses for sale at an affordable price and the rental demand is high – the perfect combination for positive cash flow real estate investing.

If you think St. Louis could be the right location for your next investment, we have good news for you. Global Investments Incorporated have just teamed up with some of the biggest Asset Management companies, management companies and title company in the city and will be releasing new inventory in the coming days. 

If you would like more information on the properties Global Investments Incorporated have to offer, don’t hesitate to contact a member of the team at invest@globalinvestmentsincorporated.com

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