St. Louis Multifamily Market
Tenant Preferences Shift Back to the CBD in Time to
Absorb Urban Construction Wave
Vacancy lift is more subdued in the CBD. After the suburban vacancy rate in St. Louis compressed rapidly during the pandemic to a record low in the first quarter, an 80-basis-point increase was noted during the subsequent three-month period. Meanwhile, vacancy in the CBD also increased in the second quarter, but by a smaller margin of only 30 basis points. This indicates that household consolidation has been more prevalent among those contending with high suburban rent gains, compared to downtown's more moderate growth. Suburban rent climbed within $90 of the reported June CBD average effective monthly rent, the closest it has been since 2011. This could shift renter behavior as residents consider moving away from suburban areas with similar or higher costs of living to urban areas, where lifestyle factors may be more attractive.