The apartment market recovery in St. Louis is expected to continue through the rest of 2011, even with the growth of new construction thanks to increased job growth in the region.
This good news comes courtesy of Marcus & Millichap Real Estate Investment Services, which recently released its 2011 multi-family outlook for the St. Louis metro area.
According to the outlook, St. Louis employers will add 22,000 jobs this year, an increase of 1.7 percent from 2010. That year, the metro area added 5,700 jobs. This comes on the heels, though, of two devastating years as far as job losses go; the St. Louis area lost more than 82,000 positions in 2008 and 2009.
Times are getting better, though. And that’s reflected in Marcus & Millichap’s report, which says that about 310 new apartments will come online in the St. Louis area during 2011. That’s a significant increase from the 38 apartment units that were added in 2010. All of the new units this year will come in the St. Louis City South submarket.
Vacancy levels in the multi-family sector will drop 80s basis points this year to 6.8 percent, Marcus & Millichap says. That’s in line with pre-recession levels. Last year, the vacancy rate slipped 160 basis points.
And in continued good news for owners and landlords, asking rents in the St. Louis area will rise 2.2 percent in 2011 to $730 a month, while effective rents will rise 3 percent to $688 a month.
