Loading Content...
St. Louis Home Values and Ownership: Gateway City's Dynamic Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
St. Louis, Missouri, known for its iconic Gateway Arch and rich baseball history, has experienced significant shifts in its housing market over the past decade. The city has seen a gradual increase in homeownership rates, coupled with fluctuating average home prices and rising average rent costs. This analysis will explore these trends and their relationships from 2013 to 2022. The homeownership rate in St. Louis has shown a steady upward trend, increasing from 44% in 2013 to 47% in 2022. This growth in homeownership coincides with changes in average home prices. In 2013, the average home price was $101,871. After a slight dip to $98,493 in 2014, prices began to rise consistently, reaching $170,002 by 2022. This represents a substantial 67% increase in average home prices over the nine-year period, despite the initial decline.
Federal interest rates play a crucial role in homeownership trends. From 2013 to 2016, interest rates remained exceptionally low, hovering around 0.1%. During this period, homeownership rates in St. Louis remained relatively stable at 44%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates in the city showed resilience, maintaining at 44%. Interestingly, when interest rates dropped sharply in 2020 (0.38%) and 2021 (0.08%), St. Louis saw a slight increase in homeownership to 45% and 46% respectively. This trend continued into 2022, with homeownership reaching 47% despite a rise in interest rates to 1.68%.
The renter population in St. Louis has correspondingly decreased from 56% in 2013 to 53% in 2022. During this period, average rent prices have shown a consistent upward trend. In 2013, the average rent was $720 per month. By 2022, it had risen to $911, marking a 26.5% increase. This rise in rent prices occurred despite a decline in the city's population from 318,416 in 2013 to 286,578 in 2022, suggesting factors beyond population growth are influencing rent costs.
In 2023, the average home price in St. Louis reached $175,308, with federal interest rates at 5.02%. Moving into 2024, the average home price has further increased to $179,806, while interest rates have slightly risen to 5.33%. These figures indicate a continuing upward trend in both home prices and interest rates.
Looking ahead, predictive models suggest that the upward trend in both average home prices and rent costs is likely to continue over the next five years. Based on historical data and current market conditions, average home prices in St. Louis could potentially reach around $200,000 by 2029. Average rent prices might similarly increase, potentially approaching $1,000 per month within the same timeframe.
In summary, St. Louis has experienced a gradual increase in homeownership rates over the past decade, accompanied by significant growth in average home prices. Despite rising interest rates in recent years, the trend towards homeownership has persisted. Simultaneously, the renter population has decreased slightly, but average rent prices have continued to climb. These trends reflect a dynamic housing market in St. Louis, with both opportunities and challenges for residents and potential homebuyers.
