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Forest Park Southeast: Rising Home Values and Ownership Rates in a Transforming St. Louis Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Forest Park Southeast, a vibrant neighborhood in St. Louis, Missouri, has experienced significant changes in its real estate landscape over the past decade. Known for its proximity to Washington University Medical Center and Forest Park, this area has seen notable fluctuations in homeownership rates and substantial increases in both average home prices and rent prices. The homeownership rate in Forest Park Southeast has shown moderate growth between 2013 and 2022. Starting at 33% in 2013, it increased to 38% by 2022. This upward trend in homeownership coincided with a substantial rise in average home prices. In 2013, the average home price was $94,973, which more than tripled to $280,305 by 2022, representing a remarkable 195% increase over this period. The relationship between federal interest rates and homeownership rates in Forest Park Southeast shows an interesting correlation. In 2013, when interest rates were at a low 0.11%, the homeownership rate was 33%. As interest rates gradually increased to 1.68% in 2022, the homeownership rate also rose to 38%. This trend suggests that despite rising interest rates, other factors such as neighborhood development and investment opportunities may have encouraged home buying in the area.
Renter percentages in Forest Park Southeast have shown a slight decrease, from 67% in 2013 to 62% in 2022. During this same period, average rent prices experienced an overall upward trend. The average rent increased from $995 in 2013 to $1,293 in 2022, representing a 30% increase. This rise in rent prices occurred alongside population growth, with the neighborhood's population increasing from 2,678 in 2013 to 2,830 in 2022, potentially contributing to the demand for rental properties.
The most recent data shows that the average home price in Forest Park Southeast continued its upward trajectory, reaching $298,966 in 2023 and $312,173 in 2024. This represents a 6.7% increase from 2022 to 2023 and a further 4.4% increase from 2023 to 2024. These price increases occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024, potentially indicating strong demand and desirability of the neighborhood.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in both average home prices and average rent prices in Forest Park Southeast. Based on the historical data and current market conditions, average home prices could potentially reach around $380,000 by 2029, assuming a moderate annual growth rate of 4-5%. Average rent prices might increase to approximately $1,500 per month over the same period, reflecting a steady annual increase of 3-4%.
In summary, Forest Park Southeast has demonstrated robust growth in its real estate market over the past decade. The neighborhood has seen a notable increase in homeownership rates, substantial appreciation in average home values, and a steady rise in average rent prices. These trends, coupled with population growth and the area's desirable location, suggest that Forest Park Southeast is likely to continue its trajectory as an increasingly valuable and sought-after neighborhood in St. Louis.
