St. Louis Gears Up
- Jun 27, 2017
Despite a slowly declining population, St. Louis continues to see positive economic trends, driven by job gains in education and health services, leisure and hospitality, and professional and business services. Demand for apartments remains elevated, and rents are growing moderately.
The metro’s universities and medical institutions produce a skilled workforce that attracts health-care and technology firms. World Wide Technology and Lodging Hospitality Management partnered to anchor a $95 million revitalization effort at Westport Plaza, a 42-acre mixed-use development that will ultimately accommodate more than 1,200 employees. St. Louis also has a strong manufacturing base, led by Boeing and General Motors. One bright spot is Boeing’s new information technology center, which is expected to create more tech jobs.
Developers ramped up apartment deliveries in 2016, when 1,370 units came online. Upcoming supply is significant, with more than 13,600 units in the pipeline, of which roughly 4,000 were under construction as of April. Investment activity continues its upward trajectory, after having reached a cycle peak in 2016, when more than $488 million worth of multifamily properties changed hands. With continued demand expected to outpace deliveries, we anticipate rents will rise moderately, reaching a 2.6 percent growth rate by the end of 2017.