St. Louis Multifamily Market
Historically High Construction Positioned
to Support Workers' Return to the CBD
In-person classes and return to offices fuel urban demand. During the past 12 months, St. Louis saw the restoration of two historical pillars of local renter demand, placing the metro on solid footing as it enters the second quarter. The Central West End-Forest Park submarket, in particular, recorded a vacancy compression of 400 basis points over the past 12 months ending in March. The return of students to Washington University and Saint Louis University was a driving factor, as these circumstances restored strong demand for campus-adjacent apartments that lifted the local average rent by roughly 8.0 percent. In addition, the employment recovery is returning renters to urban neighborhoods, as vacancy in the CBD went down by 330 basis points during 2021. St. Louis' strong connection to financial services, including headquartering Edward Jones Investments downtown, has spearheaded the return to in-person work and the recovery of the professional and business services sector.