Our industry specialist has reviewed and approved the final article. Also, some of the data presented here have been integrated into the St. Louis real estate spreadsheet template.
Thinking of buying in St. Louis? Get our financial spreadsheet tailored to this specific market.
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.
Thinking of buying in St. Louis, Missouri?
We have a real estate spreadsheet fully tailored to this market. Get it now.
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
How much cash flow can you generate in St. Louis?
Get a clear view of your next investment, with all the metrics explained and reviewed accurately.
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 worth buying property in St. Louis? Absolutely!
St. Louis offers a compelling case for real estate investment, thanks to its combination of affordability, livability, and economic strength.
With a livability score of 74, the city provides a pleasant environment, bolstered by a rich cultural scene and strong educational institutions. This makes it an attractive place for both residents and businesses. The employment rate of 65.6% further underscores a robust local economy, driven by diverse sectors like healthcare and manufacturing.
Moreover, the ability for a local to buy a house in just 3.1 years highlights the accessibility and affordability of the housing market. Upcoming infrastructure projects, such as the America's Center expansion and new airport terminal, are set to boost real estate values by 2025. With homes priced 60% lower than the national average, St. Louis presents a unique opportunity for property value appreciation.