The story for multifamily in St. Louis remains — absorption continues to outpace new supply. That again was true in the first quarter, with the numbers coming in at 2,201 and 2,103 units, respectively, according to a market report from Colliers. This marks the sixth straight quarter where deliveries have fallen short of the demand in the market.
The trend is having a positive impact on other fundamentals, including occupancy, which climbed by 60 basis points year-over-year to 95.5 percent. However, the results here varied by submarket, with suburban areas in St. Louis offering the most stability.
"St. Louis City vacancy improved from 9.4% in Q1 2025 to 8.1% in Q1 2026, reflecting strengthening fundamentals, while Central West End /Forest Park saw a slight increase to 7.3%," Colliers said.
"Meanwhile, South St. Louis County and Mid St. Louis County posted modest improvements, and outer markets such as St. Charles County and St. Clair / Madison Counties remained relatively stable."
Effective rents increased to $1,398 on average per month, from $1,334 a year ago. This reflects "consistent upward momentum despite a brief slowdown in mid-2025," according to Colliers.
Meanwhile, construction is up marginally to 2,103 versus 2,054 seen in the first quarter of 2025. Multiple submarkets are seeing demand deficits relative to construction, including St. Louis City (-220 units) and Central West End / Forest Park (-92 units).
Upcoming major deliveries this year in Colliers' report include 235-unit Jefferson Arms Residences, which is expected to hit the market in June and 204-unit Thornwood Bicks Hill in St. Charles County, estimated for November. This could lead to vacancy pressure in these areas.
Overall, Colliers noted that it is "cautiously optimistic" about multifamily in St. Louis, thanks to the stable demand versus supply coming online and expects rent growth to continue going forward.
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