St. Louis Trends & Statistics 2018-2019

In this section, you will learn about the top factors that make St. Louis a strong real estate market, including: affordability, cash flow, and equity growth potential. Explore St. Louis’ housing market, population, and employment trends in the tabs to learn more.

St. Louis real estate values are more affordable than many other U.S. cities today.

• The median price of the average three bedroom home in St. Louis is $176,000. This is 12% less than the median value nationwide.
• In the neighborhoods where Real Wealth Network members invest, the median purchase price is just under $127,000, which is 37% lower than the national average of $200,000.
• This shows us that St. Louis real estate is more affordable than many cities across the nation, especially in the neighborhoods where Real Wealth Network members are investing.

In some St. Louis neighborhoods, it’s possible to generate stronger monthly income than the national average.

• The median monthly rent of an average three bedroom home in the U.S. is $1,430, which is just under 0.72% of the median purchase price of $200,000.
• The median monthly rent of the average three bedroom home in St. Louis is $1,269, which is exactly 0.72% of the median purchase price of $176,000.
• In the neighborhoods where Real Wealth Network members invest, the median monthly rent of R.E.A.L. Income Properties is $1,185. This is 0.93% of the median purchase price of $126,860.
• This shows us that there’s an opportunity to generate passive monthly cash flow in St. Louis at a higher rent-to-purchase ratio than the national average.
• Chimwe chokwadi chinonakidza: two year leases are also relatively common in the St. Louis area!

St. Louis home values have been appreciating at a steady rate over the last five years.

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• Between January 2012 and January 2018, the average three bedroom single family home in the St. Louis appreciated in value by 27%.
• During the same period, the median rental price for three bedroom single family homes rose by 34% nationwide.

St. Louis rents have been rising at a steady rate over the last six years.

• During the same six year period, the median monthly rent for three bedroom homes in St. Louis increased by 9%. Nationally, the median monthly rent for three bedroom homes increased by 17% during this time.
• Although St. Louis home values and rents have risen more slowly than the rest of the country, it is important to note that they have both been rising at a steady rate for the last seven years.
• This is significant because it confirms that the St. Louis market is stable and that investing here offers long term appreciation and income potential.

Sources: Zillow Home Value Index, RWN Affiliate Inventory and Sales Data

St. Louis’ population has been growing slowly, yet steadily, over the last six years.

• Between July 2010 and July 2017, the St. Louis MSA population grew by 0.63%. Although this growth is significantly slower than the national average of 5.29%, the population is still growing.
• It’s also important to note that this metro area is becoming more and more popular, especially among recent college grads, who are the more likely to rent over purchasing their own home.
• In fact, St. Louis was named the 3rd best city in the United States for recent college grads (ZipRecruiter) because of its affordable rental prices (Average: $1,185 per month), short commute times (average: 23.9 minutes), and higher than average median salary for recent graduates (Average: $47,000).

Sources: Census.gov

St. Louis created 9,900 new jobs in the last year.

• Between June 2017 and 2018, the St. Louis MSA added 9,900 new jobs – an annual growth rate of 0.72%. During the same 12-month period, over 2.4M jobs were created nationwide an annual growth of 1.64%.
• Although St. Louis’ job growth was slower than the national average during this 12 month period, it’s important to note that jobs have been created AND as you can see in the population growth graph above, people have been moving to the area to claim them. In other words, slow growth is still growth.
• For investors looking to buy income property in a stable, steadily growing market (with promising signs of future growth – Cortex Innovation Community!), St. Louis is an area to consider.

Sources: Department of Numbers

St. Louis is Affordable

• St. Louis real estate is more affordable than many cities across the nation, especially in the neighborhoods where Real Wealth Network members are investing.
• In the neighborhoods where Real Wealth Network members invest, the median purchase price is just under $127,000, which is 37% lower than the national average of $200,000.

St. Louis Offers Cash Flow Opportunities

• There’s an opportunity to generate passive monthly cash flow in St. Louis at a higher rent-to-purchase ratio than the national average.
• In the neighborhoods where Real Wealth Network members invest, the median monthly rent of R.E.A.L. Income Properties is $1,185. This is 0.93% of the median purchase price of $126,860.

St. Louis Home Values & Rents are Rising

• The St. Louis market is stable and that investing here offers long term appreciation and income potential.
• Between January 2012 and January 2018, the average three bedroom single family home in St. Louis appreciated in value by 27%.

St. Louis is Growing Steadily

• Although St. Louis’ job growth was slower than the national average during the last 12 months, it’s important to note that jobs have been created AND people have been moving to the area to claim them. In other words, slow growth is still growth.
• For investors looking to buy income property in a stable, steadily growing market (with promising signs of future growth), St. Louis is an area to consider.
• Between July 2010 and July 2016, the St. Louis MSA population grew by 0.63%. Although this growth is significantly slower than the national average of 5.29%, the population is still growing.
  Between June 2017 and 2018, the St. Louis MSA added 9,900 new jobs – an annual growth rate of 0.72%. During the same 12-month period, over 2.4M jobs were created nationwide – an annual growth of 1.64%.