St. Louis 4Q23 Multifamily Market Insights Report: After 2 active years, new construction to slow

Highlights:

• The St. Louis multifamily market posted fairly healthy performance throughout much of the past year, although weaker conditions were recorded in the fourth quarter. The pace of construction is slowing, which should relieve some supply-side pressures going forward.
• Area vacancy rose by 40 basis points during the fourth quarter after holding steady in the prior three months. The vacancy rate finished 2023 at 4.8%, up 80 basis points for the full year.
• Asking rents trended lower in recent months after apartment operators increased rents at a steady pace in the previous two quarters. Local rents dipped by 2% in the last three months to $1,160 per month. Apartment rents declined by 1.3% for the full year.
• Fewer multifamily properties traded in 2023 than in the prior two years and the mix of assets that investors are targeting is evolving. Cap rates generally ranged from 5.5% to 6.5%, while the median price rose to $141,000 per unit.

Read the report, or engage with our St. Louis office to learn more.