The State of St. Louis Rental Market for Landlords and Investors
Understanding the National Rental Market
The national rental market remains robust in 2025, fueled by persistently high mortgage rates near 7%. A record 35% of consumers now prefer renting over buying due to affordability challenges and economic uncertainty. Multifamily housing completions have declined significantly, with recent reports showing nearly a 28% drop in new unit deliveries, tightening the supply and contributing to upward pressure on rents nationwide.
According to Zillow, national median asking rents have risen approximately 2.5% year-over-year, with average monthly rents hitting around $1,761 in mid-2025.
The St. Louis Rental Market Overview
St. Louis stands out as a particularly appealing market for landlords and investors due to its relatively affordable housing and strong rental growth compared to national trends.
Average Rent Data and Trends
Current average monthly rent in St. Louis hovers around $1,250 according to Zillow, showing a healthy increase of approximately 4% year-over-year. Apartments.com reports similar figures with an average of $1,116, reflecting a stable rental environment.
Meanwhile, neighborhoods such as Lafayette Square, Central West End, and Downtown St. Louis are seeing higher rents averaging between $1,500 to $1,800, indicating strong demand for premium locations.
Zillow St. Louis Rent Data
Apartments.com St. Louis Market Report
Vacancy Rates and Affordability
Vacancy rates in St. Louis remain relatively tight at around 7.6%, indicating stable demand and limited supply. Investors can expect favorable occupancy rates, contributing positively to cash flow and ROI.
Supply and Construction Insights
The local rental market faces declining new construction, mirroring national trends. Multifamily housing starts have slowed due to increased costs and economic uncertainty, providing landlords a strategic advantage through limited competition from new properties.
Local Construction Data from MMG Real Estate Advisors
Recent Disruptors and Risks
A notable recent event impacting the market was the EF3 tornado in May 2025, causing significant damage estimated at around $1.6 billion. This event has temporarily reduced available housing stock, tightening the market further and potentially increasing short-term rental demand.
Strategic Advice for Landlords and Investors
Investment Recommendations
Given the current dynamics, landlords should consider:
Investing in single-family homes (SFRs) and mid-tier apartment units due to strong tenant demand.
Focusing on neighborhoods with proven rental growth potential such as Lafayette Square and Central West End.
Being proactive in maintaining properties to attract quality tenants willing to pay premium rents.
Conclusion
The St. Louis rental market is poised for continued growth, offering substantial opportunities for landlords and investors. With strategic property management practices focused on leveraging market conditions, landlords can maximize returns and ensure sustainable profitability.
For professional St. Louis property management services or further consultation on investment opportunities, contact our experienced team today.