Why St. Louis?

St. Louis real estate market continues to be one of the most affordable in the country. Saint Louis is the second largest city in Missouri and the housing market includes almost three million people. That makes St. Louis the 20th largest metro area in the United States.

Manufacturing is important to the city’s economy, and its highly developed industries include 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. St. Louis 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.

St. Louis has seen dramatic new development is the last few years such as the overhaul of Jefferson National Expansion Memorial surrounding the St. Louis Gateway Arch and the development of Ballpark Village next to the newly-constructed Cardinal’s Busch Stadium, these are just a few examples.

St Louis Rental Vacancies remain at historically low levels and has one of the lowest rates in the whole of the US. A study recently released by the Urban Institute, revealed that “there is literally no affordable, non-subsidized housing available in St. Louis, St Louis rents have risen 18% since the real estate bubble burst”.

The St. Louis real estate market has seen strong appreciation over the past three years, properties appreciated on average 26% in the three years.

The Rental Market

Due to the affordability of the St. Louis real estate market there are low levels of inventory, this is putting upward pressure on prices. As a result of this it is making it harder for residents to afford to buy their own home. According to a study conducted by LendingTree, St. Louis is actually among the most competitive markets in the US for home buyers.

Around a third of the U.S. population rents. In the downtown St. Louis real estate market, nearly 60% of residents rent, and the rate is around a fifth when you include those in the suburbs. This is a huge rental market that you can take advantage of. Unlike college towns, your ability to find renters doesn’t depend on the popularity of the local college, nor will the value of the property depend on proximity to a particular school.

During the month of June 2019, St. Louis, MO metro rents experienced an average increase of 1.05% for 1, 2, 3 bedroom rentals , when compared to last month. When compared with same month of last year, rents saw an average increase of 2.42% for 1, 2, 3 bedroom rentals.

St. Louis is a great market to consider not only for traditional real estate investors but for Airbnb hosts as well. This is mainly due to the fact that the city doesn’t enforce any strict Airbnb rental regulations. Airbnb estimates that there were more than 88,500 guest arrivals in St. Louis last year, earning more than $9 million for Airbnb hosts in rental income.

Demographics

St. Louis County is located in the far eastern portion of the U.S. state of Missouri. It is bounded by the city of St. Louis and the Mississippi River to the east, the Missouri River to the north, and the Meramec River to the south.

St. Louis has a population of 316,030 and is the 60th largest city in the United States. The population density is 5,101 per sq mile. The suburbs and surrounding counties have steadily grown making the metro area increase in size over the past five years. The total population now stands at 2,811,588 an increase of 0.86 % in the past 5 years, which is the largest metropolitan area in Missouri, and the 20th-largest in the United States.

Growth and Returns

For many years, the main factor holding St. Louis back from becoming a prominent housing market was its slow job growth, fortunately, the outlook for the St. Louis job market is bright. St. Louis has seen the job market increase by 0.7% over the last year. Future job growth over the next ten years is predicted to be 23.9%

St. Louis is one of the metropolitan areas trying to establish an economy that can thrive by itself,
civic leaders, investors, entrepreneurs, financial institutions, and state and local government have banded together over the past several years to come up with potential solutions .

The value of new projects totals more than $1 billion including the new Ballpark Village and a $70 million retail-and-apartment proposal near the De Baliviere MetroLink station.

St. Louis is one of the fastest-growing and top-ranked emerging life sciences markets in the U.S., ranking sixth in a recent CBRE Research report. St. Louis falls into the very large BioMidwest, which includes Illinois, Indiana, Iowa, Michigan, Minnesota, Nebraska, Ohio, Wisconsin and, of course, Missouri.

Management and Aftercare

In Saint Louis we work with one, reliable and consistent partner who is local to the area and has been a hands-on expert in the local market for over 5 years. Our partner is one of the leading Saint Louis management companies who will collect and deposit your rent, maintain and repair the property, assess and interview tenants and keep you updated on a regular basis.

Invest now, contact us today!

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