Chad Hegrat
The U.S. homeownership rate dropped to 65.1% in the first quarter of 2025, according to Realtor.com, the lowest level since 2019. With rising mortgage rates, limited inventory, and elevating home prices, more Americans are putting their homebuying plans on hold and choosing to rent instead. While we see renting gain traction nationwide, St. Louis continues to stand out as one of the most affordable and attractive markets to buy. If there’s one place where buying still makes more sense than renting, it’s here.
There is no doubt that home prices have risen in St. Louis like everywhere else, it’s just that it’s been happening at a much slower pace than the rest of the U.S. As of early 2025, the median home price in the St. Louis metro area is around $280,000 which is below the national median of $348,000. Your dollar simply goes further in St. Louis, as buyers face fewer obstacles such as lower down payments, more affordable monthly payments, and less competition from institutional buyers than in markets like Austin, Phoenix, or Nashville. Those with stable income and decent credit, have the opportunity for their monthly mortgage payments to be equal to or even less than average rent, which currently sits around $1,400/month in the city.
Of course, renting does offer convenience and flexibility, ideal for short-term needs, life transitions, or uncertain plans. But in popular St. Louis neighborhoods like Soulard, The Grove, and Central West End, renters are facing rising lease prices and limited availability. And while renting may be easier upfront, it doesn’t build equity or provide protection against long-term cost increases. If you’re planning to stay in St. Louis for several years, buying a home may offer far more financial stability and long-term value especially in a market where your investment still stretches further than in most U.S. cities.
The national market might be leaning toward renting, but St. Louis defies the trend. With affordable prices, negotiable terms, and strong neighborhood appeal, buying in St. Louis is still a smart move and, in many cases, it’s the better one. If you’re debating whether to rent or buy, consider what your long-term goals look like. If you’re planning to stay in the area, want to build equity, and are tired of rising rents, St. Louis just might be the best city in America to invest in a home.