ST. LOUIS – While average monthly rents nationwide increased over the past year, rents in St. Louis and Kansas City, Missouri, slightly declined.
That’s according to a new report from Redfin, a technology-powered real estate brokerage.
“Rent-price increases outpaced mortgage payment increases for new homebuyers in 19 of the 50 largest metro areas in the U.S. during November,” the report states.
However, in Kansas City, rent prices dropped two percent and less than one percent in St. Louis within past year, while rents went up more than 30 percent in 10 metro areas in New York and Florida.
“Rapidly increasing housing costs are a big contributor to overall inflation, which hit 6.8% in November, its highest level since 1982,” according to the report.
“First inflation came for the for-sale housing market, and now it is coming for the rental market,” said Redfin Chief Economist Daryl Fairweather.
“Many people have been priced out of the for-sale market and are looking to rent instead, but that demand is pushing up rents. Anyone who bought a home before this year can pat themselves on the back because their mortgage payments are fixed, meaning their biggest recurring expense is immune to inflation.
“If you are looking to buy or rent now, there’s nowhere to hide from inflation when it comes to housing costs. The good news is that the tight labor market means it’s a great time to move somewhere more affordable. Chances are good that no matter where you go, you’ll be able to find a new job relatively quickly.”
Redfin also recently reported that 21 percent of its users who lived outside Missouri were searching for homes in the St. Louis area.
Those Redfin users looking for homes were searching from Los Angeles and San Diego, California, Chicago, Illinois, Bay Area, Washington D.C., Denver, Colorado, Minneapolis, Minnesota, Dallas, Texas, and Phoenix, Arizona, according to an article by NextSTL.
“It should be noted that while St. Louis was receiving most of its searches from these cities, these cities were not primarily looking at St. Louis,” the article states.
A total of 84 percent of St. Louis Redfin users were looking to stay in the area. If St. Louisans were to move to other cities, their housing costs would double or triple, according to the article.