"Missouri Real Estate Market Update [2025]: What Buyers & Sellers Need to Know"
- Lizzy Dooley
- May 24
- 8 min read
Updated: Jun 23
Missouri’s real estate market in 2025 is shifting. Here's what you need to know:
- Median Home Price: $251,500 (up 5.9% from 2024).
- Inventory: 20,982 homes available (6.5% increase).
- Days on Market: Homes average 47 days before selling.
- Price Trends: 23.6% of homes reduced prices; 16.1% sold above list price.
- Migration Impact: 55.4% inbound migration in 2024, driving demand in cities like Kansas City and St. Louis.
Key Takeaways:
- For Buyers: Be prepared for competition in hot markets. Get pre-approved and act quickly.
- For Sellers: Accurate pricing and strategic updates are critical to attract buyers.
- Investors: Focus on urban areas with population growth (e.g., Kansas City, St. Louis, Columbia).
Missouri’s growing economy (3.3% unemployment rate) and increasing urban demand are keeping the market dynamic. Stay informed and adapt to these trends for success.
Current Market Data
Market Numbers and Stats
Missouri's real estate market is on the rise. As of April 2024, median home prices hit $261,000, marking a 4.4% increase from the previous year. Median home values also jumped to $225,067, reflecting a 16.2% year-over-year growth.
Statewide, 7,188 homes were sold, showcasing strong demand. The average selling price across Missouri stands at $237,100, with the median selling price slightly higher at $238,500. Some areas, like St. Joseph, saw notable price increases, with a 19.9% rise in median sale prices.
Here’s a quick look at key metropolitan areas:
City | Median Home Price | Market Trend |
Kansas City | $190,000 | Strong market activity |
Independence | $140,000 | Competitive pricing |
These trends highlight Missouri's dynamic real estate market and set the stage to explore how economic factors are influencing housing demand.
Economic Impact on Housing
Missouri's broader economic environment is playing a big role in supporting its housing market. With an unemployment rate of just 3.3%, the state enjoys market stability and consistent demand. Population growth in urban areas further fuels activity.
Take a look at how some major cities are performing:
City | Current Population | Projected Growth (2025) | Growth Drivers |
Kansas City | 495,000 | +6% | Tech sector growth, cultural attractions |
St. Louis | 301,000 | +5% | Job opportunities, urban development |
Columbia | 123,000 | +7% | University influence, business expansion |
Springfield | 167,000 | +4% | Growth in healthcare industry |
The tech industry in Kansas City and the healthcare sector in Springfield are key contributors to this growth. Combined with stable unemployment rates, these factors are driving demand in Missouri's housing market, particularly in its metropolitan areas.
2025 Market Changes
Supply and Demand Changes
The Missouri real estate market is undergoing noticeable changes in 2025. In St. Louis, unit sales have slowed, and inventory levels are rising due to economic uncertainty. This reflects a more cautious approach from buyers. However, properties that are priced strategically continue to draw competitive offers, highlighting the importance of setting the right price.
Price and Cost Updates
Updated homes remain popular, with stable or even rising prices. On the other hand, fixer-uppers are seeing less interest unless priced aggressively. Properties in prime locations consistently attract multiple offers, maintaining their value.
Property Type | Market Performance | Pricing Trend |
Updated Homes | High demand | Stable or increasing |
Fixer-Uppers | Low interest | Declining unless discounted |
Premium Locations | Competitive offers | Holding value |
"Accurate pricing remains critical for market success." – Mark Gellman
New Home Construction
Nationally, the construction of new homes is expected to reach 1.1 million units in 2025, marking a 13.8% increase compared to 2024. This gradual rise in supply is particularly noticeable in the St. Louis area.
"I don't see 50 homes coming on the market Jan. 1 in a neighborhood. It's still going to be trickle, trickle, trickle." – Tina Siebert, 2024 president of the St. Louis Realtors
Housing inventory has grown from 990,000 units in December 2023 to about 1.3 million units by the end of 2024. These developments in construction and pricing set the stage for further analysis of Saint Louis's leading and up-and-coming neighborhoods.
Saint Louis Area Analysis
Top Neighborhoods
Real estate in Saint Louis shows notable variation by neighborhood. As of June 2024, the median sale price reached $304,000, reflecting a 6.7% rise compared to last year’s $285,000.
Property Size | Current Value | Annual Change |
1-Bedroom | $127,500 | +6.3% |
2-Bedroom | $183,600 | +4.9% |
3-Bedroom | $271,700 | +3.0% |
4-Bedroom | $346,400 | +5.2% |
5+ Bedrooms | $405,900 | +1.5% |
When it comes to sales trends, 41.3% of homes sell above the list price, while 42.9% close below asking price, based on data from May 2024. In addition to established neighborhoods, newer areas are showing interesting market trends.
Up-and-Coming Areas
The market performance in emerging areas has been mixed. For example, Pine Lawn saw a 12.9% growth, whereas University Township experienced a 11.4% decline. The median list price climbed to $325,000 in June 2024, up from $310,000 in 2023. Homes are taking 53% longer to sell compared to the previous year, indicating a shift toward a market that benefits buyers.
For those looking for affordable options, the median sale price rose just 2.2% year-over-year, reaching $235,000 in May 2024. This creates opportunities for first-time buyers and investors focused on long-term growth.
2025 Home Buying Guide in Missouri
Market Success Guide
This guide provides practical strategies for buyers, sellers, and investors navigating Missouri's changing housing market.
Buyer Guidelines
For buyers, preparation and quick decision-making are key in competitive areas:
- Get pre-approved: Secure your financing before starting the home search.
- Set realistic expectations: Understand what you can afford and be ready to make decisions quickly.
- Be prepared for competition: In-demand areas often see bidding wars.
While buyers must stay proactive, sellers need to position their properties to stand out.
Seller Guidelines
Sellers should focus on accurate pricing, targeted updates, and professional marketing to attract buyers.
"Sellers of great homes, priced right and marketed to the highest level, are in many cases still experiencing competitive bidding situations, often resulting in multiple offers and final sale prices above asking." - Mark Gellman
Strategy | Impact | Approach |
Accurate Pricing | Attracts buyers | Use recent sales data to set a competitive price. |
Property Updates | Increases appeal | Focus on kitchens, bathrooms, and other key areas. |
Effective Marketing | Draws attention | Use professional photos and virtual tours to stand out. |
By focusing on these areas, sellers can maximize their property's market potential.
Investment Options
Missouri offers solid real estate opportunities, especially in its growing urban areas:
City | Current Population | Growth Rate | Monthly Rent Range |
St. Louis | 301,000 | +5% | $800 - $2,500 |
Kansas City | 495,000 | +6% | $1,200 - $2,500 |
Columbia | 123,000 | +7% | $800 - $1,600 |
Investors should carefully assess property type, location, and costs to ensure profitability. For example, single-family homes typically rent for $1,500–$2,500 per month, while 2-bedroom apartments range from $1,200–$1,600.
Key considerations for investors:
- Diversify: Invest in different property types and locations to reduce risk.
- Track trends: Focus on areas with job growth and increasing populations.
- Account for costs: Include property taxes and maintenance in your calculations.
Updated properties remain in high demand, particularly in areas with strong economic growth and population increases.
Market Research Tools
Making informed real estate decisions in Missouri starts with accurate data and expert insights. The following online resources and professional services can enhance your understanding of the market.
Online Tools and Reports
Redfin Market AnalysisCheck out Missouri housing trends on Redfin, where the median home price stands at $257,800 (a 7.5% increase) with 21,363 active listings as of February 2025.
City Planning ResourcesThe City of St. Louis Planning and Urban Design Agency (PDA) offers reports with key market data:
Report Type | Key Information |
Economic Indicators | Data on population, income, and vacancies |
HMDA Reports | Insights into lending patterns |
"This quarterly report examines basic demographic and economic indicators in the City of St. Louis. Topics include population, economy, housing and development, with a wide range of data covering personal income growth, unemployment rates, building permits, vacancy, and more." - City of St. Louis Planning and Urban Design Agency
Missouri REALTORS® StatisticsFind monthly updates on:
- Sales and pricing trends
- Inventory statistics
- Overall market conditions
Lizzy Dooley Real Estate Services
For more personalized insights, Lizzy Dooley Real Estate provides tools and services to shape your market strategy.
Market Analysis Tools
- Detailed property valuations and neighborhood trend insights
- Assessments of investment opportunities
Professional Guidance
- One-on-one market consultations
- Property listing evaluations
- In-depth knowledge of Saint Louis neighborhoods
Specializing in luxury and exclusive properties, the team also offers access to listings not available through standard channels. Combine these resources with expert advice for well-informed real estate decisions.
Key Points Summary
Here's a quick overview of Missouri's real estate market in 2025, based on the latest data and trends:
Market DynamicsThe St. Louis real estate market presents a mixed outlook. While unit sales are slowing, properties with competitive pricing are holding their value - or even seeing increases. Cities like St. Louis, Kansas City, and Columbia are experiencing population growth of 5% to 7%, keeping housing demand steady.
Weather-Related CostsProperty owners should prepare for potential weather-related expenses:
- Flooding: $15,000–$50,000 on average
- Storm damage: $7,500–$20,000 on average
- Snow damage: $5,000–$15,000 on average
Tips for Buyers and SellersBuyers should keep an eye on market trends, while sellers should focus on accurate pricing and remain open to adjustments.
"As always, staying informed and responsive to the market dynamics will be key to achieving success in this evolving environment." - Mark Gellman
Property Tax RatesUnderstanding local property taxes is essential for long-term planning. St. Louis has an average rate of 1.21%, while Kansas City's rate is lower at 0.80%.
FAQs
How is Missouri's growing population impacting housing demand in cities like Kansas City and St. Louis?
Missouri's increasing inbound migration is driving higher demand for housing in major cities like Kansas City and St. Louis. With more people relocating for job opportunities, affordable living, and quality of life, these urban areas are seeing heightened competition for homes, particularly in desirable neighborhoods.
For buyers, this means acting quickly in a competitive market and being prepared for potential bidding wars. Sellers, on the other hand, may benefit from higher property values and quicker sales. Whether you're buying or selling, staying informed about local market trends and working with a trusted real estate professional can help you navigate these changes effectively.
What are the best strategies for sellers to price their homes competitively and attract strong offers in Missouri's 2025 real estate market?
To price your home competitively and attract strong offers in Missouri's 2025 real estate market, start by researching recent sales in your neighborhood to understand current trends and pricing. With homes spending an average of just 41 days on the market, timing and accurate pricing are critical.
Consider hiring a professional appraiser or working with a trusted real estate agent to determine your home's fair market value. Highlighting key features of your property and staging it effectively can also make it stand out to potential buyers. Additionally, monitor the market closely as conditions may shift later in the year, potentially favoring buyers. Staying flexible and informed will give you the best chance to secure multiple competitive offers.
What economic factors are shaping Missouri's real estate market, and how do they create opportunities in cities like Kansas City and St. Louis?
Missouri's real estate market is being shaped by several key economic factors, including rising home prices, increased sales activity, and strong housing demand. In 2024, the median home price in Missouri reached $261,000, reflecting a 4.4% annual appreciation. Additionally, home sales volume grew by 9.2% compared to the previous year, signaling robust market activity.
Urban areas like Kansas City and St. Louis are particularly attractive for investors due to growing populations, expanding job markets, and rising property values. Missouri’s affordability, economic stability, and steady population growth make it an excellent market for buyers, sellers, and investors looking to capitalize on these trends. Whether you're purchasing your first home or exploring investment opportunities, now is a great time to take advantage of Missouri's thriving real estate landscape.
