Due to a multiplicity of factors, rent has risen dramatically over the last year in metropolitan areas across the United States. St. Louis has been no exception to this general trend, as the most recent reports show.
RealPage Inc.’s most recent data on 50 of the countries largest metropolitan statistical areas shows that between Q1 of 2020 and Q3 of 2021, rent rose nationally by around 10%. St. Louis was slightly above average. At a year over year increase of 11.3%, the St. Louis MSA ranked 29th for fastest increase in rent. More precisely, in the first quarter of 2020, the average rent rate in St. Louis was $978. In the third quarter of 2021, it was $1,089.
This is above the national average increase, but significantly below many Sunbelt cities that have seen almost unbelievable amounts of activity and rising rates. In the Phoenix-Mesa-Scottsdale MSA, for example, which topped the list, rents have increased by 26.2% in the last year. In several cities in California, the average rent has risen to nearly $2,000, even in typically more affordable areas.
The primary drive behind this increase in rent seems to be shortage of inventory. The country has a decade’s long housing deficit that goes back to the 2008 Financial Crisis, although this of course has different weight in different parts of the country.
In St. Louis, a whole slew of new developments are currently planned or under construction to help address this need. From the Prairie in St. Charles County, which will have 180 units to the continuation of City Foundry with a planned 282 units, there is definitely a lot of supply planned to meet all the demand.