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Thinking about investing in real estate in St. Louis in 2025? You're on the right track.
St. Louis offers a promising market with its unique blend of affordability and growth potential.
In this blog post, we will explore why investing in this city is a smart move.
We rely on solid data and statistics from trusted sources to provide you with a clear picture.
After a detailed analysis, we present our own conclusions to help you make an informed decision. Enjoy the read!
How this content was produced 🔎📝
This article offers thoughtful insights and analysis based on reliable sources, but it should not be considered financial advice. We work hard to research, compile, and analyze data to give you a well-informed perspective. However, as you can guess, our analysis involves subjective choices, such as source selection and methods, and it cannot fully capture the market's complexity. Please, always do your own research, consult professionals, and make decisions based on your own judgment. Any financial risks or losses are your responsibility. Additionally, you should know that we have no affiliation with the sources mentioned, ensuring our analysis is completely impartial.
1) St. Louis has a "livability score" of 74, indicating it's a pleasant place to live
Signal strength: moderate
The livability score of 74 in St. Louis is considered good, indicating a favorable environment for residents. This score reflects the city's affordable cost of living, which is significantly lower than the national average, making it attractive for potential homeowners and investors.
Additionally, St. Louis boasts a rich cultural scene with numerous museums, theaters, and music venues, enhancing the quality of life and drawing people to the area. The city is also known for its strong educational institutions, including renowned universities and research centers, which contribute to a well-educated workforce and stable economy.
These factors combined suggest that investing in property in St. Louis could be a wise decision, as they create a desirable living environment that attracts both residents and businesses. However, if the livability score were to drop below 65, it might indicate underlying issues that could affect property values negatively.
Source: AreaVibes
2) St. Louis boasts a strong employment rate of 65.6%
Signal strength: moderate
The employment rate in St. Louis is at 65.6%, which is considered high compared to other regions in the United States.
This high employment rate indicates a strong local economy, which can be a positive sign for real estate investors. When more people are employed, they have the financial means to buy or rent properties, which can drive up demand and property values.
In St. Louis, the major employment sectors include healthcare, manufacturing, and financial services, providing a diverse economic base. Companies like Boeing and BJC HealthCare are significant employers in the area, contributing to the robust job market.
If the employment rate were to drop below 60%, it might suggest economic challenges that could impact the real estate market negatively.
We created this infographic to show how property prices in St. Louis compare to other big cities in Missouri. It shows the median price as well as the price per sqft, making it easy to see which places might offer the best value. We hope you find it helpful.
3) A local in St. Louis could buy a house in about 3.1 years, which is relatively quick
Signal strength: moderate
In St. Louis, it would take around 3.1 years for a local to buy a house, which is relatively short compared to many other cities. This indicates that the housing market is accessible and affordable for residents.
The median household income is approximately $56,245, which suggests that people in St. Louis have a decent earning capacity. With a median home price of about $175,443, homes are priced within reach for many families.
This affordability can make St. Louis an attractive place for real estate investment. When locals can buy homes more easily, it often means there is a stable demand for housing, which is a positive sign for investors.
If the time to buy a house were to increase to over 5 years for a local, it might indicate a less favorable investment environment.
Source: USCensus
4) By 2025, St. Louis's infrastructure projects, like the "America's Center" expansion and new airport terminal, will significantly increase real estate values
Signal strength: moderate
St. Louis's infrastructure projects, including the America's Center expansion and new airport terminal, are set to boost real estate values by 2025, making buying property there a potentially good investment.
The expansion of the America’s Center Convention Complex, with its completion expected by 2025, is a major enhancement to downtown St. Louis. This $256 million project will attract more events and visitors, increasing demand for nearby commercial and residential properties, which can lead to higher real estate values.
Similarly, the new terminal at St. Louis Lambert International Airport, part of a $2.8 billion investment, will improve connectivity and appeal to businesses and travelers. Enhanced airport facilities can make nearby commercial properties more desirable, potentially driving up property values.
Additionally, the I-270 Riverview Interchange and Chain of Rocks Bridge projects, expected to be completed by 2025 or 2026, will improve freight infrastructure. This can make nearby commercial properties more attractive to businesses reliant on logistics, potentially increasing property values.
Investments in underinvested neighborhoods, with $130 million allocated for infrastructure improvements, aim to catalyze development and enhance livability. These improvements can lead to increased property values and economic growth in North and Southeast City neighborhoods and Downtown St. Louis.
Sources: The Freightway, Greater St. Louis Inc., Meetings Today, AJOT, Hermann London
Our team designed this infographic to show how competitive the real estate market in St. Louis is vs. other major cities in Missouri. It shows the percentage of sales above the list price, a key indicator of market competition.
5) St. Louis offers homes at prices 60% lower than the national average
Signal strength: minimal
The fact that St. Louis has a median home price that is 60% below the national average suggests that there is significant potential for property value appreciation in the area.
In St. Louis, the most expensive properties are likely to be luxury homes located in affluent neighborhoods such as the Central West End. These areas are known for their historic charm and proximity to cultural amenities, making them highly desirable.
On the other hand, the cheapest properties are often small single-family homes or fixer-uppers in neighborhoods like North St. Louis, where prices are lower due to economic challenges. Investing in these lower-priced areas can offer opportunities for significant returns if the neighborhood experiences revitalization.
If the median home price in St. Louis were to rise to closer to the national average, it might indicate that the market is becoming less of a bargain and potentially less attractive for investment.
Source: Zillow
So, is it a good time to invest in St. Louis real estate in 2025? Absolutely, yes.
Investing in St. Louis real estate in 2025 is a smart move, thanks to several compelling factors.
First, the city boasts a livability score of 74, indicating a pleasant living environment with an affordable cost of living and a rich cultural scene. This makes it attractive for both residents and investors. Additionally, the strong employment rate of 65.6% suggests a robust local economy, which is crucial for sustaining property demand and values.
Moreover, the fact that a local can buy a house in just 3.1 years highlights the market's accessibility and affordability. With median home prices 60% below the national average, there's significant potential for appreciation. Finally, upcoming infrastructure projects, like the "America's Center" expansion and new airport terminal, are set to boost real estate values further.
Related analyses:
- Here is why prices are going to climb in 2025 in St. Louis