Where is the most profitable neighborhhod for real estate in St. Louis, MO?

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The question of 'the best neighborhood to buy a property in St. Louis' does not have a one-size-fits-all answer.

Some of you are buying to live there, while others want to make the best investment possible. Individual preferences and circumstances matter.

That’s why the article below is covering every intent.

At WhatsmyCashFlow, when we write a blog post or when we update our real estate spreadsheet for St. Louis, we want to bring solutions for everyone.

Enjoy the read, and please remember that we are not financial or investment advisors. This article is for informational purposes only.

To improve the readability and user-friendliness of this article, we will categorize neighborhoods into various groups, including budget-friendly options, emerging hotspots, and areas with high rental demand, among others. Consequently, some neighborhoods may appear in multiple categories and be mentioned several times throughout the article.

How is the real estate market in St. Louis, Missouri?

The housing market in St. Louis, Missouri, is dynamic and continuously evolving, making it an intriguing prospect for buyers and investors.

One of the city’s strengths lies in its unique combination of a growing tech scene, rich historical heritage, and a vibrant cultural atmosphere. The presence of major companies like Anheuser-Busch, Boeing, and a burgeoning startup ecosystem creates a high demand for housing as professionals flock to the city for job opportunities. Why does it matter? Because this influx of skilled workers drives up property values, making it a lucrative market for investors like you.

Let’s be honest - St. Louis offers attractions and amenities that are rare elsewhere.

The city's iconic Gateway Arch, world-renowned barbecue scene, and distinct neighborhoods like the historic Soulard and the upscale Central West End are just a few examples. Its unique geography, with the Mississippi River providing stunning waterfront views, adds to the city's charm and limits the space for new development, contributing to its exclusivity.

People who are looking to buy in St. Louis often include tech professionals, entrepreneurs, and young families seeking high-quality education and a lively urban environment. The diverse cultural landscape, excellent public transportation, and strong community values also attract a wide array of buyers.

For those interested in buying and renting out property in St. Louis, the high demand for rental units from transient professionals and short-term residents ensures a steady stream of potential tenants, making it a sound investment.

The real estate market in St. Louis is exceptionally dynamic. For instance, the median home price saw a year-over-year increase of around 8% recently, indicating a robust and competitive market. This constant flux in property values and demand underscores the market's vibrancy and potential for significant returns on investment.

One very specific aspect of St. Louis properties is the prevalence of red brick architecture, which adds a unique charm and historical value.

These architectural styles, characterized by intricate detailing and sturdy construction, are highly sought after and can command premium prices. This architectural uniqueness is a significant draw for buyers who appreciate the city's historical and aesthetic value.

As mentioned before, several factors contribute to the future appreciation of property values in St. Louis. The ongoing tech boom, limited housing supply due to geographical constraints, and continuous influx of high-income professionals are key drivers.

Additionally, ongoing urban development projects and infrastructural improvements, such as the expansion of public transit and revitalization of certain neighborhoods, will likely further boost property values up.

Top neighborhoods in St. Louis to consider for living

Areas in St. Louis that are budget-friendly

Neighborhood	Average Price per Square Meter ($)	Characteristics	Resident Demographics	Strengths
Tower Grove South	1,614	Diverse community, industrial past, ripe for renovation, increasing connectivity	Working-class families, artists, young professionals	Community spirit, connectivity with city, proximity to Tower Grove Park and South Grand commercial district
The Grove	2,153	Laid-back urban feel, vibrant nightlife, tranquility during the day, mix of single-family homes and apartment complexes	Long-time locals, young professionals, students	Strong sense of community, good schools, recreational opportunities at Forest Park and Botanical Garden
Dutchtown	1,292	On the cusp of change, variety of property types, vibrant cultural scene, family-friendly	Latino, African American, working-class families	Cultural scene, family-friendly, affordability

Note: The average price per square meter is calculated by converting the average price per square foot to square meters (1 square meter = 10.7639 square feet).

We’ll be transparent - when you’re looking to buy a property in St. Louis, finding an affordable and budget-friendly area can be quite the challenge.

However, there are still a few neighborhoods that stand out for their relative affordability and potential for future growth.

Let’s dive into three of these areas: Tower Grove South, The Grove, and Dutchtown.

Tower Grove South

Tower Grove South is one of the last frontiers for budget-friendly properties in St. Louis.

Historically, it has been one of the city's less expensive areas due to its industrial past and higher crime rates. However, recent years have seen significant investment in infrastructure and housing, leading to a gradual transformation.

The area is dotted with single-family homes, many of which are ripe for renovation. The average price per square foot hovers around $150, making it one of the more accessible areas in the city.

The community here is diverse, with a mix of working-class families, artists, and young professionals starting to move in.

Tower Grove South’s strengths lie in its community spirit and increasing connectivity with the rest of the city, especially with the proximity to Tower Grove Park and the South Grand commercial district.

However, it still struggles with perceptions of safety and lacks some of the amenities found in more affluent neighborhoods.

The Grove

The Grove offers a more laid-back, urban feel while still being within the city limits.

It’s cheaper primarily because of its distance from the downtown core and the industrial areas that surround it, which some people find less appealing.

That said, the neighborhood has a unique charm with its vibrant nightlife and the tranquility it offers during the day.

You can find a mix of single-family homes and a few apartment complexes here, with an average price per square foot around $200.

The residents are a blend of long-time locals, young professionals, and students who appreciate the eclectic vibe.

The strengths of The Grove include its strong sense of community, good schools, and recreational opportunities at Forest Park and the nearby Botanical Garden. On the downside, it can feel isolated, and the industrial surroundings aren’t for everyone.

Dutchtown

Dutchtown is another neighborhood worth considering.

It’s cheaper because it hasn’t yet seen the gentrification that other parts of the city have, but it’s on the cusp of change. The area features a variety of property types, including single-family homes and multi-unit buildings.

The average price per square foot here is about $120. Dutchtown is home to a diverse population, with a strong representation of Latino, African American, and working-class families. The neighborhood’s strengths include its vibrant cultural scene, family-friendly environment, and relative affordability.

However, it lacks some of the polish and high-end amenities of more developed areas and has pockets that can feel a bit rundown.

Areas in St. Louis that are popular and upscale

Neighborhood	Average Price per sqm	Type of Properties	Demographics	Strengths	Weaknesses
Central West End	$3,000+	Historic mansions, elegant townhouses, modern condos	Young professionals, medical students, established families	Walkability, safety, top-rated schools, cultural institutions	High cost of living, parking challenges
Clayton	$3,500	Luxurious single-family homes, high-end apartments, condos	Affluent professionals, young families, retirees	Strong sense of community, beautiful parks, vibrant cultural scene	Busy during workweek, high cost of living
The Grove	$2,500	Renovated historic homes, modern condos, new construction townhouses	Young professionals, creatives	Vibrant atmosphere, walkable streets, strong sense of community	High cost of living, occasional noise from nightlife

Central West End

If you're looking to invest in St. Louis, the Central West End (CWE) should be on your radar. This neighborhood is one of the most vibrant and upscale areas in the city.

While not as pricey as some coastal cities, the CWE is still on the higher end for St. Louis, with average prices per square meter often exceeding $3,000. This area attracts a mix of young professionals, medical students, and established families, thanks to its proximity to Washington University, Barnes-Jewish Hospital, and a plethora of dining and entertainment options.

Properties here range from historic mansions and elegant townhouses to modern condos, many of which offer views of Forest Park or the bustling Euclid Avenue.

The strengths of this neighborhood include its walkability, safety, and access to top-rated schools and cultural institutions like the St. Louis Art Museum and the Missouri History Museum.

However, the downside is the relatively high cost of living and the occasional challenge of finding parking, especially during peak hours.

Clayton

Clayton is another prestigious neighborhood known for its blend of urban sophistication and suburban tranquility. It's quite expensive for the St. Louis area, with average prices around $3,500 per square meter.

This area attracts affluent professionals, young families, and retirees who appreciate its excellent public schools, upscale shopping, and fine dining. Properties here range from luxurious single-family homes to high-end apartments and condos, many with modern amenities and stylish designs.

Clayton is likely to stay popular because of its central location, excellent public transportation, and proximity to major highways, making it easy to commute to downtown St. Louis or other parts of the metro area.

The neighborhood's strengths include its strong sense of community, beautiful parks, and vibrant cultural scene.

On the flip side, Clayton can be quite busy during the workweek, and the cost of living is higher than in many other parts of St. Louis.

The Grove

The Grove is a favorite among young professionals and creatives looking for a more eclectic and community-oriented vibe. It is also on the rise, with average prices per square meter around $2,500, making it more affordable than Central West End and Clayton.

This neighborhood is known for its lively nightlife, diverse dining options, and colorful street art.

Properties here include renovated historic homes, modern condos, and new construction townhouses.

The Grove's popularity is likely to continue due to its welcoming community, proximity to major employers like Cortex Innovation Community, and easy access to public transportation.

The neighborhood's strengths are its vibrant atmosphere, walkable streets, and strong sense of community.

However, the high cost of living and occasional noise from nightlife can be drawbacks for some residents.

Areas in St. Louis that emerge as new hotspots

Neighborhood	Description	Key Attractions	Current Property Prices	Future Outlook
The Grove	Historically an industrial and commercial area, now a vibrant community hub with affordable housing and new developments.	New cafes, breweries, art spaces, historic charm, modern amenities, ample green spaces like Forest Park.	More affordable compared to neighborhoods like Central West End or Clayton.	Prices likely to rise as more people discover its potential.
Fox Park	Once a gritty industrial zone, now one of the trendiest neighborhoods with renovated historic homes and new businesses.	Chic restaurants, boutique shops, community gardens, central location, easy access to public transportation.	Climbing, but still lower than in areas like Lafayette Square or Soulard.	Property values expected to continue climbing as more people flock to the area.
South Hampton	Once considered too far removed from the city's hustle and bustle, now a sought-after neighborhood with a family-friendly atmosphere.	New cafes, boutique shops, organic markets, proximity to Tower Grove Park and the Missouri Botanical Garden.	More affordable than in the central parts of the city.	Property values expected to rise as more people seek out its unique charm and community feel.

If you're looking to invest in a neighborhood with strong long-term rental demand and the potential for significant returns, these emerging hotspots in St. Louis, Missouri, are worth considering.

The Grove

The Grove, historically an industrial and commercial area, has undergone significant transformation in recent years.

Originally known for its factories and warehouses, The Grove is now a vibrant community hub. The influx of young professionals and families drawn by affordable housing and new developments has brought a fresh vibrancy to the area.

The introduction of new cafes, breweries, and art spaces has made The Grove a hotspot for creatives and entrepreneurs.

Despite its industrial roots, the neighborhood offers a unique blend of historic charm and modern amenities, with ample green spaces like the nearby Forest Park.

The Grove's property prices are still more affordable compared to neighborhoods like Central West End or Clayton, mainly because it's only recently started gaining attention.

As more people discover its potential, prices are likely to rise, but for now, it remains a relatively budget-friendly option.

Fox Park

Fox Park, once a gritty industrial zone, has seen a remarkable turnaround and is now one of the trendiest neighborhoods in the city.

Its transformation began with the renovation of historic homes and the introduction of new businesses. The opening of chic restaurants, boutique shops, and community gardens has further cemented Fox Park's status as an up-and-coming area.

The neighborhood's central location and easy access to public transportation make it highly attractive.

While prices here are climbing, they are still lower than in areas like Lafayette Square or Soulard. The community vibe and the blend of historic charm with modern amenities make Fox Park particularly appealing to young professionals and families. Expect property values to continue to climb as more people flock to this dynamic area.

South Hampton

South Hampton, once considered too far removed from the city's hustle and bustle, is now becoming a sought-after neighborhood.

Known for its quiet streets and family-friendly atmosphere, South Hampton has long been a hidden gem for those seeking a more laid-back lifestyle. Recent years have seen an influx of new cafes, boutique shops, and organic markets, reflecting the area's growing appeal to a younger, more diverse demographic.

The proximity to Tower Grove Park and the Missouri Botanical Garden provides ample outdoor activities, making it ideal for nature lovers and families.

The real estate prices in South Hampton are still more affordable than in the central parts of the city, partly because it's perceived as being on the periphery.

However, as more people seek out its unique charm and community feel, you can expect property values to rise.

Top neighborhoods in St. Louis to invest in property

Areas in St. Louis with a strong long-term rental demand

Neighborhood	Types of Tenants	Types of Properties	Rental Income	Rental Yield	Tips for Increasing Income
Central West End	Young professionals, medical staff, students	Modern apartments, historic buildings	$1,200 - $1,800/month (1-bedroom)	5-6%	Opt for properties close to Forest Park or Euclid Avenue
Soulard	Young professionals, creative types	Older, character-filled buildings	$1,500 - $2,200/month (2-bedroom)	5%	Consider properties near the Soulard Farmers Market
Clayton	Wealthy professionals, families, executives	Historic mansions, spacious condos, well-appointed apartments	$2,500 - $3,500/month (2-bedroom)	4-5%	Focus on properties with views of Shaw Park or near the business district

If you're looking to purchase property in St. Louis for rental purposes, focusing on neighborhoods with strong demand can maximize your returns. Three key neighborhoods stand out: Central West End, Soulard, and Clayton.

Central West End

Central West End is a lively, upscale area that attracts a mix of young professionals, medical staff, and students due to its proximity to Washington University, Barnes-Jewish Hospital, and a variety of cultural attractions.

Tenants here typically seek modern apartments and historic buildings with amenities such as fitness centers, rooftop terraces, and secure parking.

One-bedroom apartments in Central West End can fetch around $1,200 to $1,800 per month. The rental yield here can be attractive, ranging between 5-6%, thanks to the high demand and premium rental rates.

Opt for properties close to Forest Park or Euclid Avenue to ensure lower vacancy rates and higher rent.

The main drawback is the area's susceptibility to fluctuations in the local economy, particularly in the healthcare and education sectors, which could impact demand.

Soulard

Soulard is another hotspot, popular for its historic charm and vibrant nightlife.

This area appeals mainly to young professionals and creative types who enjoy the eclectic mix of restaurants, bars, and shops. Tenants in Soulard often look for older, character-filled buildings, such as brick townhouses and lofts, which have been updated with modern amenities.

Here, two-bedroom apartments can rent for about $1,500 to $2,200 per month. Rental yields can be solid, around 5%, given the consistent demand for the area's unique vibe.

To maximize rental income, consider properties near the Soulard Farmers Market, the heart of the district's activity. However, be mindful of the noise and nightlife, which might deter some potential tenants.

Clayton

Clayton is a prime neighborhood with a reputation for upscale living. It draws wealthy professionals, families, and executives who prefer larger, luxurious homes and high-end apartments.

Properties in Clayton often include historic mansions, spacious condos, and well-appointed apartments. Rental rates for a two-bedroom apartment here can reach $2,500 to $3,500 per month. Due to the high property values, the rental yield might be lower, around 4-5%, but the area offers stability and lower vacancy rates.

Focus on properties with views of Shaw Park or within walking distance to the business district to attract top-tier tenants and command higher rents. The primary downside is the steep initial investment and the competitive market for high-quality properties.

Areas in St. Louis with a strong short-term rental demand

Neighborhood	Demand Reasons & Tenant Profile	Preferred Properties & Amenities	Average Nightly Rate & Tips
The Central West End	Proximity to major institutions like Washington University, Barnes-Jewish Hospital, and the Cortex Innovation Community. Medical professionals, university staff, and business travelers.	Well-appointed, modern apartments with high-speed internet, fitness center, and easy access to public transportation.	$150-$250/night. Invest in sleek, modern condos near medical and innovation hubs; prioritize workspace and views of Forest Park.
The Grove	Vibrant nightlife, eclectic dining options, and cultural diversity. Tourists and young professionals.	Unique, stylish properties with well-stocked kitchens, outdoor space, and proximity to public transportation and local hotspots.	$100-$200/night. Invest in charming historic homes or modern lofts near Manchester Avenue; emphasize unique character.
Lafayette Square	Historic charm, close to landmarks like Lafayette Park and the Peabody Opera House. Tourists and business travelers seeking upscale experience.	Elegant, well-furnished apartments or historic homes with modern amenities such as concierge services, fitness center, and park views.	$200-$300/night. Invest in properties near the park; restore historic features while incorporating modern luxuries.

If you want to reduce the risk of your property investment in St. Louis, and especially the vacancy rate, aim for these 3 neighborhoods.

The Central West End

The Central West End is a prime spot for short-term rentals due to its proximity to major institutions like Washington University, Barnes-Jewish Hospital, and the Cortex Innovation Community.

The typical tenants in the Central West End are medical professionals, university staff, and business travelers who appreciate well-appointed, modern apartments.

They look for properties with high-speed internet, a fitness center, and easy access to public transportation. For a one-night stay in the Central West End, you can expect to charge around $150-$250.

To maximize rental income in the Central West End, invest in sleek, modern condos near the medical and innovation hubs. Properties with a dedicated workspace and excellent views of Forest Park will attract higher-end tenants and reduce vacancy rates.

The Grove

The Grove is another neighborhood with strong short-term rental demand, attracting tourists and young professionals.

The area is known for its vibrant nightlife, eclectic dining options, and cultural diversity.

Tenants in The Grove are often looking for unique, stylish properties that reflect the neighborhood's lively atmosphere. They appreciate amenities like a well-stocked kitchen, outdoor space, and proximity to public transportation and local hotspots.

The average nightly rate in The Grove ranges from $100 to $200. To get better rental income in this area, consider investing in charming historic homes or modern lofts close to Manchester Avenue, known for its bars, restaurants, and entertainment venues.

Lafayette Square

Lafayette Square is a prime location for short-term rentals, attracting tourists and business travelers seeking a more upscale experience.

This neighborhood offers historic charm and is close to landmarks like Lafayette Park and the Peabody Opera House.

Tenants in Lafayette Square typically prefer elegant, well-furnished apartments or historic homes with modern amenities. They look for properties with amenities such as concierge services, a fitness center, and breathtaking views of the park.

The average price for a one-night stay in Lafayette Square is between $200 and $300.

To increase rental income, focus on properties near the park, offering stunning views and easy access to local attractions. Restoring historic features while incorporating modern luxuries can attract a high-end clientele and ensure consistent bookings.

Areas in St. Louis where property prices might increase in the future

Neighborhood	Why Prices Are Low	Current Developments	Factors for Price Increase
The Grove	Historically significant but overlooked for a long time.	Cortex Innovation Community, Chouteau Greenway project bringing new housing, retail spaces, and green areas.	Large-scale redevelopment transforming the neighborhood, increased desirability and livability.
Bevo Mill	Not as well-known, one of the last affordable areas in St. Louis.	South Grand Boulevard project improving sidewalks, lighting, and bike lanes.	Proximity to public transportation, infrastructure upgrades, hidden-gem status.
Central West End	Prices higher than The Grove or Bevo Mill but still reasonable compared to more central neighborhoods.	City Foundry STL project turning an old industrial area into a mixed-use neighborhood with offices, homes, and retail spaces.	Proximity to medical and research institutions, new job opportunities, urban development.

As these neighborhoods continue to develop and attract more residents and businesses, you can expect property values to rise, making them smart choices for investment.

The Grove

The Grove is a historically significant area that’s experiencing a renaissance.

Prices here are still relatively affordable because the neighborhood has been overlooked for a long time.

However, with the new Cortex Innovation Community and the Chouteau Greenway project, there's a lot of investment pouring in. These projects are bringing in new housing, retail spaces, and green areas. As the area revitalizes and becomes more desirable, expect a rise in property prices.

Single-family homes and townhouses will be in high demand as families and young professionals move in looking for more space and a community vibe.

The key factor here is the large-scale redevelopment, which will transform the neighborhood into a more attractive and livable area.

Bevo Mill

Bevo Mill is another neighborhood with great potential. It’s one of the last affordable areas in St. Louis, partly because it’s not as well-known as other parts of the city.

However, it's gaining attention due to its proximity to public transportation and the ongoing improvements to local infrastructure, like the South Grand Boulevard project.

This project aims to revitalize the main thoroughfare with better sidewalks, lighting, and bike lanes.

Properties like multi-family units and condos will see high demand here, especially because they cater to the young professionals and families looking for reasonably priced options with good commute access.

The ongoing infrastructure upgrades and the neighborhood's hidden-gem status make it ripe for appreciation.

Central West End

Central West End is already somewhat trendy but still has room to grow.

Prices are higher than The Grove or Bevo Mill, but still relatively reasonable compared to more central neighborhoods.

The big draw here is the proximity to the booming medical and research institutions like Barnes-Jewish Hospital and Washington University Medical Center.

With new developments like the City Foundry STL project, which is turning an old industrial area into a mixed-use neighborhood with offices, homes, and retail spaces, Central West End is becoming increasingly desirable.

High-demand properties will include modern lofts and apartments that appeal to medical professionals and researchers looking for a short commute and a vibrant local scene.

The combination of new job opportunities and exciting urban development will drive property prices up.

How to get the best ROI out of a property investment in St. Louis, Missouri?

Picking the right neighborhood in St. Louis is not everything.

Each neighborhood has potential if the strategy is right, but it cannot be based on gut feeling. You need to analyze the data and make financial projections. This approach will save you from a lot of mistakes and money losses.

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