Why St. Louis, MO Is A Great Place To Invest In Real Estate
TL;DR - St. Louis City, with a median home price of $160,000, is one of the most affordable real estate markets in the country.
Unlike the oversaturated real estate markets that you’ll find on the East and West coast, St. Louis, MO offers surprisingly cheap price points for people looking to invest. With the market entering a “hot” phase, now is the perfect time to get in on the massive potential of this midwest city.
Diversity of Real Estate Asset Class & Price Points in St. Louis
The most common real estate asset class that you’ll find in St. Louis, MO, is single-family detached homes. One and two-bedroom homes dominate this real estate asset class in St. Louis.
However, don’t worry if you’re looking for something other than single-family detached homes.
Duplexes, homes converted to apartments, large apartment complexes, and even some row houses are available in this market.
Currently, the St. Louis market is really competitive. It’s classified as a seller’s market since there are more buyers than there are homes for sale.
It’s clear that real estate investors are beginning to realize the value of St. Louis property, so the time to buy is now.
Here’s what you’re looking at in terms of price points:
Median Sales Price on Residential homes - $260,000
Median Sales Price on Townhouse/Condo homes - $184,200
Average Sales Price on Residential homes - $327,607
Average Sales Price on Townhouse/Condo homes - $240,910
To give you a better perspective, $210k is the median sale price you can expect from a home in St. Louis ($142 per square foot).
St. Louis City Demographics and Population Trends
You might be surprised to hear that St. Louis, MO, is a fairly diverse city.
Population
The most current listed population of St. Louis City is 294,890. This is down -.0.95% from 2020, when the population was listed at 297,733.
In fact, St. Louis’ population is down -7.66% since 2010, when the city had 319,336 people residing in it.
Population decline aside, St. Louis is a city where diversity is abundant.
Race
Here’s the breakdown of racial demographics in St. Louis:
White - 143,401 (46.53%)
Black - 143,018 (46.41%)
Asian - 10,365 (3.36%)
Two or More Races - 7,412 (2.41%)
Another Race - 2,979 (0.97%)
American Indian and Alaska Native - 787 (0.26%)
Native Hawaiian and Other Pacific Islander - 212 (0.07%)
Age & Sex
In terms of age, most people that live in St. Louis City are young to middle-aged adults.
The median age for both sexes is 35.8 years old. For men, the median age is 35, and for women, the median age is 36.5.
There are slightly more females than males in St. Louis. 51.59% (158,999) of St. Louis is female, and 48.41% (149,175) of St. Louis is male.
Education
St. Louis is, without a doubt, an educated city.
Here’s a breakdown of the education attained by St. Louis City residents:
Less than 9th Grade: 7,000 (3.19%)
9th to 12th Grade: 19,828 (9.04%)
High School Graduate: 52,444 (23.92%)
Some College: 46,327 (21.13%)
Associates Degree: 14,004 (6.39%)
Bachelors Degree: 43,290 (19.74%)
Graduate Degree: 36,379 (16.59%)
St. Louis MSA Data
While the demographics above were specific to the city of St. Louis, the St. Louis metro consists of 2.8 million people! This also extends to the St. Louis housing market - you aren’t limited to the city itself.
Age & Sex
St. Louis metro has a slightly higher median age than St. Louis City, at 39.7. 61% of the St. Louis metro falls within the age bracket of 18 to 64.
The female population of the St. Louis metro, similar to the city, is slightly higher than the male population. 52% of the metro is female, while 48% is male.
Income
St. Louis residents aren’t living badly at all.
The average per capita income in the St. Louis metro is $37,365, while the median household income is $66,417.
10% of people in the St. Louis metro are below the poverty line, which is less than the national rate of 12.3% in the United States.
The mean travel time to work is 26 minutes in the metro.
Housing
Currently, there are 1,267,434 housing units total in the St. Louis metro. 90% of these are occupied, and 69% are owner-occupied. 73% of these units are single-unit homes.
The median value of owner-occupied housing units is $184,600. With the homes in St. Louis appreciating over the past few years, you can expect this value to rise.
12.8% of people living in the St. Louis metro have moved since last year. This is slightly lower than the national average of 13.7% in the United States.
Top Employers and Industries in St. Louis
St. Louis is home to eight Fortune 500 companies. These companies include:
Centene
Emerson Electric
Reinsurance Group of America
Edward Jones Investments
Graybar Electric
Olin
Ameren
Post Holdings
Industries
There are many thriving industries in St. Louis.
These include:
Manufacturing
Retail
Healthcare
Social Services
Food Service
Technology
And more!
St. Louis has a bustling economy with plenty of opportunities for workers.
Technology Scene In St. Louis
While St. Louis thrives on more traditional industries like manufacturing and retail, it’s quickly becoming a hub for technology.
This is because the leaders of the city want to future-proof its economy. Big money is in tech nowadays, and St. Louis doesn’t want to miss out.
College Presence
A big reason for the shift to tech in St. Louis is the universities in the area.
Three high-quality universities offer study programs focused on technology and related subjects.
These universities are Washington University, St. Louis University, and the University of Missouri-St. Louis.
Money Talks
It’s also to St. Louis’ benefit that corporate business space is so inexpensive in the area.
Real estate prices and cost of living are remarkably low in St. Louis compared to other big cities. This makes it an attractive market for companies looking to keep expenses down and revenue high.
In addition, St. Louis has many initiatives and funding opportunities for startups looking to establish roots in the city.
On the Forefront
All of these factors make St. Louis a promising market for technology and new business.
It isn’t wrong to say that St. Louis is leading the charge of modernization and incorporating tech into its economy.
Want To Learn More About Real Estate Investing?
St. Louis, MO, is just one of the numerous real estate markets you can invest in. In fact, with so many options to choose from, it can be hard to know where to get started.
That’s where we come in. At Undoor, we pride ourselves on teaching new and experienced investors to maximize their gains with minimal stress. Our goal is to help you fall in love with real estate and real estate investing.
Do you want to get key insights and advice that’ll help you get ahead of the game? Don’t hesitate to contact us for any real estate wants or needs.
Citations/Resources
St. Louis Real Estate Data: https://www.noradarealestate.com/blog/st-louis-real-estate/
St. Louis City Demographics & Data: https://worldpopulationreview.com/us-counties/mo/st-louis-city-population
St. Louis Metro Demographics & Data: https://censusreporter.org/profiles/31000US41180-st-louis-mo-il-metro-area/
Economy of St. Louis: https://en.wikipedia.org/wiki/Economy_of_St._Louis
Tech in St. Louis: https://www.throttlenet.com/blog/technology-news/st-louis-has-a-strong-tech-future/
YouTube video about St. Louis Real Estate Investing: https://www.youtube.com/watch?v=fJYqIOowvq8&t=191s
