The US economy is currently going through inflation, which is having a direct influence on the St. Louis, Missouri property market. Inflation occurs when prices rise due to increased demand for products or services. Because of the rising cost of living, home buyers and sellers in this Midwestern city are trying different tactics when making real estate investments.
Inflation can make it difficult for potential homeowners to afford homes in St. Louis because of the rising cost of living. This is a primary reason the housing market has been slow to recover in this region over the last 15 years. The average home price in St. Louis is currently around $342,106 – which is roughly overvalued by 21.4% and is 5.4% higher than in December 2021. This makes renting more expensive than ever before and can be especially difficult for those on fixed incomes, such as seniors or students with limited income sources.
While inflation has caused a rise in home prices and rent costs, it has also made it easier for those who are looking to sell their home. It’s important to take into account all of the factors that are affecting the market when making decisions about real estate investments or purchases — as this can ultimately lead to better results and more satisfaction with your final decision.
Learn how inflation might hurt your next real estate purchase or investment property.
