Photo by Palo Cech

Written by David Dodge

St. Louis Housing Market: New Construction Booming in Suburbs, City Struggles

The St. Louis housing market continues to see positive movement, with new home construction increasing in most areas. According to the latest data from the Home Builders Association of St. Louis & Eastern Missouri (HBA) for the 12 months ending May 31, 2024, a total of 4,004 building permits were issued for new single-family homes in the St. Louis area St. Louis New Home Building Permits. This marks a 2.72% increase from the previous year, indicating a steady rise in new construction activity.

Suburban Sprawl: Demand Drives Growth

The report highlights a trend of suburban growth, with four out of the seven counties covered experiencing increased permits. Notably, Lincoln County witnessed a significant jump of 47.30% in permits issued year-over-year. This suggests a growing demand for new housing in these areas, potentially fueled by factors like affordability and larger lot sizes compared to the city center.

St. Louis City: A Different Story

However, the data paints a contrasting picture for the City of St. Louis itself. The report reveals a 19.05% decrease in new home construction permits compared to the same period last year. This decline could be due to various reasons, such as limited land availability within city limits, the focus on revitalizing existing neighborhoods, or a preference for larger homes found in suburban areas.

Experts Weigh In: Market Dynamics and Future Outlook

To gain further insight, local real estate experts can be consulted. Their perspectives can shed light on the specific factors influencing construction trends in different areas. Additionally, reports from organizations like the St. Louis Realtors® Source: Monthly Housing Report - St. Louis REALTORS® can provide valuable data on existing home sales, inventory levels, and overall market health.

What This Means for Homebuyers

For potential homebuyers, this data suggests a diverse market with options to suit various needs. Those seeking brand-new, spacious homes in growing suburbs may find a wider selection. However, the City of St. Louis might offer a different appeal, with opportunities for historic charm or proximity to urban amenities.

Stay Informed: Resources for Making Smart Decisions

Before making a decision, it's crucial to conduct thorough research. The Home Builders Association of St. Louis & Eastern Missouri (HBA) website offers valuable resources for exploring new construction options and connecting with reputable builders. You can find their website by searching online for "Home Builders Association of St. Louis & Eastern Missouri."

Consulting with a local real estate agent can also provide personalized guidance and expertise to navigate the St. Louis housing market effectively. Real estate professionals like Dennis Norman (while it's important to consult credible sources, local agents can offer valuable insights) can share their experience and knowledge about specific neighborhoods and market trends.

For ongoing market updates and data on existing home sales, inventory levels, and overall market health, you can search online for "Monthly Housing Report - St. Louis REALTORS®