As we step into January 2025, Missouri’s real estate market is experiencing notable changes influenced by economic trends, demographic shifts, and evolving buyer preferences. Understanding these dynamics is crucial for buyers, sellers, and investors aiming to navigate the market effectively.
Economic Overview
Missouri’s economy has demonstrated resilience and growth in recent years. In 2023, the state’s gross domestic product (GDP) reached $430 billion, marking a real growth of 2.6% compared to the previous year. This growth rate, while slightly below the U.S. average of 2.9%, positioned Missouri 25th nationwide. Notably, approximately 82% of the state’s 115 counties, including St. Louis City, experienced economic expansion from 2022 to 2023, a significant improvement from the prior period.
Housing Market Trends
Home Prices and Sales
The Missouri housing market has witnessed a steady increase in home prices. As of December 2024, home prices in Missouri rose by 7.4% year-over-year. Concurrently, the number of homes sold increased by 10.2%, and the inventory of homes for sale expanded by 5.6%. These trends indicate a robust market with active buyer participation and a gradual increase in available properties.
Affordability and Inventory
Missouri remains one of the more affordable states for homebuyers. The median listing price stands at $289,900, approximately 32% lower than the national average. The median sale price is $267,900, about 35.3% lower than the national average. With a median household income of $57,290, Missouri has an affordability ratio of 4.7, ranking it as the 10th most affordable state based on home prices relative to income.
Regional Highlights
St. Louis and Kansas City
St. Louis and Kansas City are emerging as significant players in the 2025 housing market. According to Zillow’s recent forecast, these cities are among the top housing markets for 2025, characterized by strong demand and limited housing supply. This dynamic leads to increased competition among buyers, with homes often selling quickly at or above asking prices.
Economic Indicators
Manufacturing Sector
Manufacturing continues to be a vital component of Missouri’s economy. The industry accounts for 11.6% of the state’s private-sector employment, with over 286,000 jobs across more than 8,300 establishments. Since 2018, the sector has added over 13,600 jobs, reflecting a 5% growth over five years, nearly three times the national growth rate of 1.7% during the same period.
Bankruptcy Filings
Despite economic growth, Missouri has seen a surge in bankruptcy filings amid economic pressures. Business bankruptcy filings rose by 33.5% nationwide, while personal filings increased by 15.5%. This trend underscores the financial challenges faced by some residents and businesses, even as the broader economy expands.
As of January 2025, Missouri’s real estate market reflects a blend of growth and challenges. The state’s economy is on an upward trajectory, with significant contributions from the manufacturing sector. The housing market shows robust activity, with rising home prices and sales, particularly in urban centers like St. Louis and Kansas City. However, the increase in bankruptcy filings highlights underlying economic pressures that warrant attention. For stakeholders in Missouri’s real estate market, staying informed about these trends is essential for making strategic decisions in the year ahead
