If you’ve ever sat through a weekend “get rich with real estate” seminar, you’ve probably heard this pitch:
St. Louis is the affordable Midwest market with strong cash flow, stable renters, and easy entry points.
And for many investors, that sounds like the perfect recipe for a better retirement, a nest egg for the family, or a shot at financial freedom.
But here’s the truth: without the right guidance, St. Louis can turn from opportunity into nightmare—fast.
This is the real story of one out-of-state investor who trusted the hype, bought “off market” without local representation, and walked straight into a $150,000 mistake.
🎯 The Investor’s Dream
My client is a hard-working man in his mid-fifties living on the East Coast. Like many in his shoes, he was looking for a way to build long-term wealth and provide for his family.
He heard what countless others are told: “St. Louis is the place to buy.”
So he jumped in, wiring $150,000 for his first turnkey rental property.
- No Realtor® commissions (because it was an “off market” deal).
- A property management company already lined up.
- Fresh-looking siding and new stainless steel appliances.
- Promises of strong rent and easy passive income.
It looked like the perfect start.
🚨 The Reality Check: What Went Wrong
Within months, the shiny promises started peeling away—literally.
- Bad Tenants + Weak Management
The property management company was unresponsive. Their “repairs” were more about lipstick on a pig than real fixes. Within seven months, the tenants had to be evicted for nonpayment. - Vacancy = Higher Risk
During the turnover period, his brand-new furnace and stainless appliances were stolen. A stolen car was even dumped in the backyard. - Neighborhood Surprises
He installed cameras only to discover neighbors using his electrical outlets, kids climbing his trees, and strangers cutting through his property daily. - The Siding Illusion
That “new siding” from the distance photos? Up close, it was a patchwork of leftover pieces, spray-painted to match. - The Pricing Bombshell
When we pulled records, I had to deliver devastating news: the property had been on the market for months with no takers. The listing was canceled, only to close seven days later—with him paying tens of thousands more than the previous asking price.
❓ Why Do Out-of-State Investors Get Burned in St. Louis?
St. Louis is a complex market. Its very strengths—affordability, diverse neighborhoods, investor-friendly pricing—are what attract both legitimate buyers and predatory operators.
Here are the common traps:
- “Off Market” Doesn’t Mean Better
It often means no MLS data, no comps, and no protection. - Neighborhood Nuance
St. Louis is a block-by-block city. One street may be a rental goldmine; the next could be plagued with vacancy and crime. - Conflict of Interest in Management
Some turnkey sellers recommend (or own) the management company—so they’re getting paid twice, while the investor absorbs the risk. - Compliance Costs
From municipal occupancy inspections to lead-safe rules, new investors often underestimate the true cost of staying compliant.
🎤 But Wait—Do These Seminars Ever Work?
Here’s the truth: the people on stage running these weekend investor bootcamps? Many of them really are successful investors.
So yes—can it work? Absolutely.
But here’s the difference:
- They know how to vet properties, management companies, and contractors.
- They’ve built teams who protect their money when they invest out-of-state.
- They understand the neighborhoods where they’re buying—sometimes because they’ve lived there or studied the market for years.
You, the brand-new investor? You don’t have those systems yet. And that’s where the danger lies.
They may be friendly. They may seem incredibly helpful. But at the end of the day, they don’t protect you if the deal goes sideways.
Their bank account doesn’t take the hit—yours does.
Think of it this way: watching a celebrity chef on TV might inspire you to try soufflé at home. But if you don’t know how to separate the eggs or preheat the oven correctly, you’re more likely to end up with a collapsed mess than a five-star dessert.
It’s not that soufflé doesn’t work. It’s that you need the skill and support before you can pull it off.
🧮 The Numbers Have to Work (“The Math Has to Math”)
One of the biggest mistakes new investors make is treating their first property like an emotional purchase.
They fall in love with the idea of passive income. They get excited by the photos. They want to believe the pitch.
But here’s the reality: real estate investing is a numbers game.
- If the rent doesn’t cover your mortgage, taxes, insurance, and reserves, it’s not a deal.
- If the rehab budget is too low to fix the real problems, it’s not a deal.
- If you can’t see a path to positive cash flow in the first year, it’s not a deal.
That’s why I tell my investor clients: “The math has to math.”
Once the numbers line up, then it’s time to pull the trigger. That first successful deal becomes the foundation for many more. But you’ve got to have the confidence that the person you’re working with is truly interested in your success—not just in selling you a property.
🏘️ Why Having a Realtor Who’s Also an Investor Matters
Here’s where my perspective comes in: I’m not only a Realtor® in St. Louis—I’ve personally owned rental properties and flipped homes for profit.
That means I don’t just run the numbers on a spreadsheet; I’ve lived what it means to handle tenants, manage contractors, and make (or lose) money on a deal.
When I walk a property, I’m looking at it through both lenses:
- As a Realtor® trained to protect your legal and financial interests, and
- As an investor who knows the difference between a money-maker and a money pit.
That combination is exactly what was missing in my client’s first purchase—and it cost him dearly.
📊 St. Louis Investor FAQs
Q: Is St. Louis still a good place to invest in 2025?
A: Absolutely—if you’re strategic. Properties priced right in stable neighborhoods still deliver strong returns. The key is local expertise and due diligence.
Q: Can’t I just trust a property manager recommended by the seller?
A: That’s like asking a used car dealer to pick your mechanic. Always interview multiple managers and ask for references from current clients.
Q: How do I know if I’m overpaying?
A: A Realtor® with access to MARIS MLS can pull comps, rental histories, and days-on-market data that “off market” sellers won’t show you.
✅ How to Avoid a $150K Mistake
If you’re considering buying in St. Louis, here’s your investor safety checklist:
- Work with a Realtor® who understands investing firsthand. Not just someone who sells houses, but someone who’s owned them, managed them, and flipped them.
- Get independent inspections. Don’t trust seller-provided reports.
- Check neighborhood trends. Look at vacancy rates, crime reports, and appreciation patterns.
- Verify rent comps. Use MLS data and public records, not seminar slides.
- Budget realistically. Factor 10–15% vacancy/maintenance—not the 2% “pro forma” number often pitched.
📝 Final Word
St. Louis offers incredible opportunities for investors—but it’s not a city you can buy into blindly.
For my client, the difference between a solid portfolio and a six-figure mistake came down to one choice: he had no one protecting his interests.
If you’re thinking about investing here, don’t let your first $150K be a tuition payment in the school of hard knocks.
I’ve worked with first-time investors, out-of-state buyers, and seasoned pros alike. Before you buy, let’s talk strategy, neighborhoods, and numbers—so your story ends with cash flow, not caution tape.
Karen Moeller
STLKaren.com
Karen.McNeill@STLRE.com
314.678.7866
According to ATTOM’s Q1 2025 U.S. Home Flipping Report, home flipping remained an active segment of the real estate market in both Missouri and Illinois, although investor performance varied. In Missouri, 1,576 homes were flipped during the quarter, representing 11.0% of all home sales—well above the national average. Flippers in Missouri earned a median gross profit of $36,000, which translated to an 18.0% return on investment (ROI). Meanwhile, Illinois saw higher profitability with 2,001 flips and a 6.5% flipping rate. The median gross profit for Illinois investors reached $85,981, yielding a strong ROI of 52.8%. While Illinois investors had to hold properties longer—averaging 182 days compared to Missouri’s 165 days—the higher margins more than compensated for the wait. The ATTOM report reflects how flipping conditions can differ sharply even between neighboring states, emphasizing the importance of market-specific strategies and cost structures for investors seeking consistent returns.
For buyers, sellers, or investors in the St. Louis area looking to navigate the local real estate landscape—whether you’re flipping, buying, or selling—working with a knowledgeable agent from MORE, REALTORS® can help you make informed decisions with local expertise and proven results.
St. Louis stood out as one of the top-performing rental markets in the nation in early 2025, with single-family rents rising 6.1% year-over-year through March. That’s the second-highest increase among the 50 largest U.S. metros and well above the national average of 4.1%, according to the Q2 2025 Arbor Single-Family Rental Investment Trends Report:contentReference[oaicite:0]{index=0}.
This growth comes despite national trends showing a slowdown in rent escalation and a slight dip in occupancy. Occupancy rates for single-family rentals nationwide averaged 93.7% in Q1 2025, marking the fourth straight quarterly decline. Retention rates, however, are on the rebound after dropping from a high of 87.3% in mid-2022 to 79.2% in early 2024—now climbing back to 84.3% by year-end.
Build-to-rent construction, a key driver in the single-family rental space, has also stabilized. Nationally, about 84,000 units were started over the past year, making up 8.4% of all single-family home starts. Meanwhile, cap rates for single family residential (SFR) properties rose to 6.8%, and debt yields climbed to 10.8%, reflecting higher borrowing costs and investor caution:contentReference[oaicite:2]{index=2}.
Despite slight cooling in the broader housing market, St. Louis continues to see strong demand for single-family rentals—benefiting from affordability pressures, limited for-sale inventory, and a steady renter base. These conditions position St. Louis as a resilient market for rental investors, even as the national market moves toward more balanced conditions.
For those interested in exploring opportunities or evaluating options, reach out to MORE, REALTORS® for trusted guidance.
According to the just-released Independent Landlord Rental Performance Report – June 2025 from Chandan Economics, Missouri finds itself far from the top in terms of on-time rental payments. The national on-time payment rate dropped to 84.3%, down 85 basis points from the month before, while the forecast full-payment rate slid to a post-pandemic low of 94.0%. While western states like Montana (93.5%) and Utah (92.3%) led the nation, Missouri did not crack the top 10 — or even top 20 — states for on-time rent performance. This matters for St. Louis landlords and property managers who rely on timely rent to meet mortgage and maintenance obligations.
The report, using data from over 73,000 independently managed rental units tracked via RentRedi, is a key indicator for “mom-and-pop” landlords. Properties with 2-4 units performed best at 84.6% on-time payment, compared to just 83.6% for larger multifamily properties. For St. Louis investors managing smaller portfolios, this suggests resilience in duplexes and fourplexes. But with rising credit card delinquencies and resumed student loan payments, economic pressure on renters is growing. It’s more important than ever for landlords to stay informed, use solid tenant screening practices, and explore tools for efficient rent collection. For support navigating this changing landscape, connect with MORE, REALTORS®.
Source: Chandan Economics – Independent Landlord Rental Performance Report, June 2025
According to ATTOM’s just-released April 2025 U.S. Foreclosure Market Report, foreclosure activity across the U.S. continues to rise gradually. A total of 36,033 properties had a foreclosure filing last month, which includes default notices, scheduled auctions, or bank repossessions. This marks a 0.4% increase from March and a 13.9% jump from April 2024. Rob Barber, CEO of ATTOM, commented that while foreclosure volume is still below historical norms, “the year-over-year increases may suggest that some homeowners are beginning to feel the effects of persistent economic pressures.”
In the Midwest, Illinois stood out with one of the highest foreclosure rates in the nation—one in every 2,405 housing units—while Chicago led major metros with 220 completed foreclosures. Although Missouri wasn’t highlighted individually in ATTOM’s release, local data compiled by MORE, REALTORS® paints a revealing picture. Our exclusive STL Market Chart below shows the number of distressed home sales (including foreclosures, REOs, short sales, etc.) across the St. Louis MSA over the past 15 years. While there has been a modest uptick recently, the green line on the chart illustrates that current levels remain dramatically below the peaks seen in the aftermath of the 2008 housing crisis. Back in 2010, over 10,000 distressed sales occurred in a single year. Today, we’re seeing fewer than 500.
This is encouraging news, but also a reminder that opportunities and challenges still exist. For homeowners struggling with mortgage payments or facing foreclosure, MORE, REALTORS® can help you explore options like selling before foreclosure, lease-back solutions, or short sales. For buyers, we can help you identify and pursue distressed properties in a smart, informed way.
Whether you’re looking to avoid foreclosure or take advantage of foreclosure-related buying opportunities, we’re here to help you make informed, strategic decisions in today’s market.
St Louis MSA Foreclosures (Distressed Sales) Past 15 Years – Chart
The latest Independent Landlord Rental Performance Report from Chandan Economics, covering April 2025, shows on-time rental payments nationally hitting 86.3% — an improvement of 45 basis points from the prior month, and notably the first year-over-year increase in on-time payments since July 2023. While this is encouraging news overall for small to medium landlords, the story for Missouri and Illinois isn’t quite as rosy when you dig into the state-level data.
Missouri posted an on-time payment rate of just 83%, putting us at 42nd out of the 47 states and districts that met reporting standards. That’s a full 330 basis points (3.3%) below the national average. Making matters worse, Missouri saw a significant 267 basis point decline compared to the previous month. Illinois didn’t fare much better, with an 84% on-time rate, ranking 38th nationally. Illinois’ on-time payment rate fell 248 basis points from last month and is still about 230 basis points under the national average.
When you put it side by side, both Missouri and Illinois are underperforming the nation on rent collections. It’s not catastrophic, but it’s definitely a caution flag for rental property investors here. With national collections firming up and western states like Utah and Idaho pulling over 92% on-time, it’s clear that our region isn’t bouncing back at the same clip. For small and mid-size landlords, staying ahead of tenant risk and local economic shifts is going to be just as important this year as watching interest rates and property values.
The interactive chart below shows national on-time payment rates broken down by property type—single-family rentals, small 2–4 unit properties, and larger multifamily buildings. In April, 2–4 unit rentals led the pack nationally with an 87.0% on-time payment rate, just ahead of single-family homes at 86.5% and larger multifamily at 86.2%. While states like Utah and Idaho are posting eye-popping numbers over 92%, it’s a different story here closer to home. Missouri and Illinois both fell short of the national averages across the board, reminding us that local market conditions can look very different even when national trends seem positive. For independent landlords here, staying dialed into those local shifts will matter just as much as watching national stats.
A recent survey from Knightvest Capital highlights a clear shift in the mindset of today’s renters—nearly half (48%) now view renting as a deliberate lifestyle choice rather than just a financial necessity. Even more telling, 42% of renters say they expect to remain tenants for five years or more. It’s a strong indication that the flexibility, lower maintenance, and built-in community aspects of renting are becoming more appealing—especially when compared to the demands of homeownership.
One of the more surprising takeaways from the report is that nearly a third (31%) of current renters previously owned a home. That tells us this isn’t just about affordability—it’s a lifestyle decision. These trends carry real implications for property owners, managers, and multifamily investors here in the St. Louis area.
As more tenants settle into renting for the long haul, expectations are rising. Renters are looking for well-maintained properties in locations that make sense for their daily lives, with amenities that add value. Strong property management and a sense of community are key factors that help attract and retain long-term tenants.
For anyone investing in or managing rental property in the St. Louis metro area, the message is clear—quality matters more than ever. The infographic from the Knightvest Capital study is included below and offers a snapshot of the evolving preferences among today’s renters.
And if you’re thinking about investing in rental property or need help managing one you already own, the experienced agents at MORE Realtors INLINE TEXT Link – goes to agent website
MORE, REALTORS®.
Zombie foreclosures—homes abandoned during the foreclosure process—remain a rare issue nationwide, according to ATTOM’s latest Q1 2025 report. Nationally, only one in every 14,700 homes sits vacant due to foreclosure, holding steady from last quarter and slightly improved from a year ago. While overall foreclosure activity has declined for five consecutive quarters, the share of zombie foreclosures remains a fraction of the U.S. housing market.
In Missouri, the number of zombie foreclosures rose 85% over the past year, from 27 to 50 homes, while St. Louisrecorded an 8.9% zombie foreclosure rate among properties in foreclosure. Peoria, Illinois, continues to see higher rates, with 15.5% of its foreclosures sitting vacant. Despite these localized increases, zombie foreclosures remain a small concern in Missouri and Illinois compared to past housing downturns.
At MORE Realtors INLINE TEXT Link – goes to agent website
MORE, REALTORS®, we stay on top of market trends to help clients make informed real estate decisions. Whether you’re looking to buy, sell, or invest, our team provides expert guidance in a constantly evolving housing market.
The on-time payment rate for single-family rentals dropped to 85.3% in August 2024, marking its lowest point since September 2021, according to the chart below from Chandan Economics. This decline reflects a potential shift in tenants’ financial situations, as the rate had generally been stable over the past two years. Landlords, especially independent operators, may now face increased challenges maintaining cash flow as timely rental payments become less consistent.
The chart below highlights the historical fluctuations in rental payment punctuality, showing that single-family rental payments were on a recovery trend from earlier dips in 2020 and 2021. However, the latest figures suggest renewed pressures on tenants, possibly due to inflation or rising household costs. Landlords will need to keep a close watch on this trend as it could signal deeper issues in the rental market.
Rental Payment Tracker – On-time Payment Rate by Property Type
(click on chart for live, interactive chart with up to date data)
President Biden’s recent proposal for a 5% corporate rent cap has stirred significant debate among housing experts. The Housing Solutions Coalition (HSC) has criticized the plan, labeling it as “typical election year rhetoric” and warning that rent caps exacerbate housing shortages, leading to higher rents and lower quality housing. They argue that the nation’s massive housing deficit requires solutions that prioritize building more housing, not restricting development.
The HSC advocates for regulatory and financial incentives for home builders and multifamily owners/operators, along with increased subsidies for low-income families. They contend that these measures would effectively address affordability issues, whereas rent caps would hinder new development and limit the availability of existing rental units. Echoing this sentiment, Jason Furman, former chair of the Council of Economic Advisers, stated, “Rent control has been about as disgraced as any economic policy in the tool kit,” emphasizing that such policies could worsen housing supply problems.
Based on the data from the recent ATTOM report on U.S. commercial foreclosures, there is a noticeable trend that highlights the challenges and changes in the commercial real estate market over the past decade. The report indicates a significant increase in commercial foreclosures, rising to 625 in March 2024 from a low of 141 in May 2020—a time characterized by pandemic-induced economic shocks and responsive fiscal interventions. This sharp rise represents a 117% year-over-year increase and underscores a broader economic narrative where, despite short-term stabilizations, long-term market corrections have been a constant presence.
States like California, New York, and Florida have borne the brunt of these fluctuations. For instance, California experienced a dramatic 405% increase from last year, showcasing how regional factors and state-specific economic conditions have influenced foreclosure rates. This analysis not only offers insights into the challenges faced by the commercial real estate market but also highlights the sector’s resilience and capacity to navigate through a continuum of economic cycles.
The recent spike in commercial foreclosures has raised questions about the interconnectedness of the commercial and residential real estate markets. Historically, these two sectors have shown some level of correlation, as economic factors affecting businesses often spill over into the residential sphere. For instance, a downturn in commercial real estate can lead to job losses and reduced consumer spending, which in turn can soften the residential market. However, the current trends suggest a more complex relationship, with the residential market remaining relatively stable despite significant upheavals in commercial real estate. In the coming months we’ll see if that trend continues.
US Commerical Foreclosures 2014 – 2024 (Chart)
The latest residential vacancy rate data from the U.S. Census Bureau for the St. Louis Metropolitan Statistical Area (MSA) shows that the rental vacancy rate for 2023 was an average of 7.73% and increase of over a percentage point from the previous year. As the chart below illustrates, the average St Louis rental vacancy rate for 2023 was the highest in four years.
St Louis MSA Rental Vacancy Rate 2015-2023
The St. Louis MSA has seen a notable decrease in foreclosure filings in the fourth quarter of 2023, with the numbers falling to 851, a 19% reduction from the previous quarter. When we look at the year-over-year data, the decline is even more significant, showing a 46% drop from the fourth quarter of 2022. This downward trend suggests a potentially stabilizing real estate market in the St Louis metro area, with fewer properties entering foreclosure.
Within this broader picture, certain counties have experienced remarkable changes. Monroe County, for instance, recorded a sharp increase of 60% in foreclosure filings from Q3, while Madison County saw filings decrease by 7% in the same period. Saint Clair County, which had faced a high volume of foreclosures, saw a 13% decrease from Q3 2023 and a substantial 79% drop from Q4 2022, reflecting a positive shift for homeowners in the area. This data, encapsulated in the accompanying table, offers a snapshot of the current market conditions and emerging trends in the St. Louis housing landscape.
St Louis Metro Area Foreclosure Filings – 4th Quarter 2023
© 2024 St Louis Real Estate News – Data Source: Attom Data Research
The St. Louis MSA recorded 311 foreclosure actions in October 2023. This represents a significant decrease of 12% from September 2023 and a substantial decline of 71% compared to October 2022. This suggests a strong recovery or stabilization in the real estate market in the St. Louis area, indicating fewer homeowners are facing foreclosure compared to the previous year.
Month over Month and Year Over Year Change in Foreclosure Activity in the St Louis MSA (By County)
In the ever-evolving landscape of real estate transactions, the threat of fraud has become increasingly sophisticated and pervasive. Recent alerts from Westcor and other title insurance underwriters highlight a worrying trend in real estate fraud, impacting not just foreign-owned unimproved lots but also residential and commercial properties across the board. As a leading voice in the St. Louis real estate market, it’s crucial to address these concerns and reinforce the importance of vigilance among our agents and clients.
The Escalating Threat of Real Estate Fraud
- Seller Impersonation: No longer confined to foreign-owned, unimproved land, fraudsters are now targeting all types of properties, including those with owner-occupied homes and commercial entities. This form of deception involves impersonating the property owner to illegally sell the property.
- Earnest Money Fraud: A newer tactic involves the fraudster acting as both the buyer and seller, using counterfeit checks for earnest money deposits. These checks, often drawn from foreign banks, are for amounts higher than typical in a purchase agreement. The scam unfolds as the fraudster cancels the deal before the check clears, demanding a wire transfer refund of the deposit.
- Fraudulent Contract Assignments: In some cases, a fraudulent buyer assigns their contract to an unsuspecting third party. This complex scam involves posting online listings for properties that aren’t actually for sale, leading to conflicting demands on escrow deposits and creating a dilemma for title agents.
Red Flags and Preventative Measures
To safeguard against these scams, it’s essential to recognize potential red flags:
- Unusual Communication Patterns: Be wary of sellers who avoid in-person meetings or insist on communicating only via phone, text, or email.
- Inconsistencies in Identity: Pay attention to discrepancies like accents not matching the owner’s name, inability to answer property-specific questions, or documents signed or notarized in unexpected locations.
- Urgency and Aggression: A seller in a hurry or who becomes belligerent when asked for verification is a potential red flag.
- Suspicious Financial Requests: Be cautious of sellers requesting fund transfers to foreign bank accounts or presenting foreign checks, especially for amounts exceeding typical earnest money.
Best Practices for Real Estate Professionals
- Verification: Always verify the identity of all parties involved in a transaction. Utilize state websites for license authenticity checks and refer to resources like the European Union’s PRADO website for passport verifications.
- Payment Methods: Avoid accepting foreign checks. Instead, insist on wired funds for transactions.
- Legal Consultation: In cases of uncertainty, seek advice from a licensed real estate attorney, especially regarding escrow arrangements.
- Reporting: If you encounter fraudulent activities, report them immediately to the relevant authorities, including providing copies of fraudulent identification and documents.
Staying Informed and Prepared
For more detailed information on these scams, visit the Federal Trade Commission’s guide on fake check scams and the Financial Crimes Enforcement Network’s resources on title and escrow fraud.
Conclusion
The real estate industry in St. Louis, like many others, is not immune to the threat of fraud. It’s imperative that we, as professionals, remain vigilant, informed, and proactive in our efforts to protect our clients and ourselves from these deceptive practices. By staying aware and adhering to best practices, we can continue to uphold the integrity and security of real estate transactions in our region.
This article aims to educate and alert the St. Louis real estate community about the increasing sophistication of fraud in the industry, emphasizing the importance of vigilance and adherence to best practices to safeguard against these threats.
During the 3rd quarter of this year, there were 1,200 properties with foreclosure filings in the St. Louis MSA, according to the U.S. Foreclosure Market Report by ATTOM Data. This marks a 17% increase in St. Louis foreclosures from the prior quarter and an increase of 32% in St Louis foreclosure activity from a year ago.
The table below reveals that the city of St Louis saw the most foreclosures during 3rd quarter, followed by the Illinois counties of St Clair and Madison.
St Louis Foreclosures – 3rd Quarter 2023
With changing regulations, subdivision restrictions, municipal ordinances, state and federal laws, landlords certainly have a lot to keep up with today to make sure they stay compliant in their rental business. I’ve been in the business over 40 years, have an interest-and a fair understanding of- laws that affect real estate, yet still find it challenging to stay updated. Given this, I can only imagine the challenge faced by someone with a full-time career who also owns rental properties as an investment. Perhaps, this might be a compelling reason to consider hiring a professional property manager for your rentals. However, that decision brings its own complexities, which I’ll delve into in a future article.
A recurring issue for landlords, which prompts many questions from agents in our firm, clients, and other landlords, revolves around service animals. The question is usually framed something like, “I don’t want any pets in my rental properties, so I have a strict no-pet policy but am I obligated to allow dogs or other pets if the tenant claims it’s a ‘service animal’?” Before I go further, let me remind you, I am not an attorney, this isn’t legal advice—in fact, it’s not advice at all. I’m merely sharing what I’ve learned on the topic to heighten awareness of the issue and to encourage those that are not familiar with it to learn what they need to learn or to seek out proper legal guidance to avoid problems.
There were 788 homes and condominiums “flipped” during the second quarter of this year in the St Louis M.S.A., according to data just released by ATTOM Data Solutions. As the infographic below illustrates, these flips represent 8.7% of all sales during the quarter, a decrease of 23.9% from the prior quarter and a decline of over 22% from a year ago.
St Louis Home Flipping Report Q2 2023
(click on infographic to see complete report including prices and profits)
Last month, city of St Louis mayor, Tishaura Jones, signed into law a new ordinance which provides “access to legal representation for tenants facing eviction or equivalent proceedings”. Surprisingly, it does not appear that the tenant needs to show a final hardship or need for “full legal representation” to be provided at no cost as the bill defines a “covered individual” as “any residential tenant who occupies a dwelling located within the City under a claim of legal right, other than the legal property owner of the dwelling.” Another interesting thing in the ordinance is that it appears to include legal representation for not only in the case of an eviction but also in the case of a non-renewal of a lease as Section Four of the ordinance (General Provisions of Right To Counsel for Tenants In Covered Proceedings) states “A covered individual may access legal representation as provided in this ordinance as soon as a landlord provides notice to terminate or not renew a tenancy, or as soon thereafter as is practicable.”
Then, according to reports, yesterday, St. Louis Aldermanic President Megan Green announced that legislation was being drafted to require landlords in the City of St Louis to provide contact information as part of the City’s occupancy permit process. Aldermanic President Green stated “It will help the city better keep track of who is owning certain properties so if there’s issues with properties there’s a local agent requirement, instead of trying to track down a random person registered to an LLC, which is often a challenge,” Landlords will also be required to report the rental amount they are charging according to Green.
Green also announced that the Board of Aldermen plan to consider a “tenants bill of rights” as well.
Ordinance 71694 – Providing Legal Representation to Tenants Facing Eviction
(click on image below for entire ordinance)
So far this year, up until June 30, there have been 1,973 properties with foreclosure filings in the St. Louis MSA, according to the U.S. Foreclosure Market Report by ATTOM Data. This marks a 5% increase in St. Louis foreclosures compared to the same period last year, a surge of 119% from 2021, and a 5% uptick from 2020.
Now, let’s turn our attention to the counties in Illinois with the most significant increases in foreclosures: Macoupin and Bond…
As depicted in the table below, Macoupin County in Illinois experienced a 63% rise in foreclosure activity this year compared to last, and Bond County saw a similar upward trend with an increase of 60%.
On the other hand, let’s check out the Missouri counties of Jefferson and Warren, where we’ve seen the largest decreases in foreclosures…
The table below reveals that both Jefferson and Warren Counties in Missouri enjoyed a 50% reduction in foreclosure activity this year compared to the previous year.”
[xyz-ips snippet=”Foreclosures-For-Sale-and-Homes-For-Sale”]
St Louis Foreclosures – Jan-June 2023
Last month, there were 460 properties with foreclosure filings in the St Louis MSA, according to ATTOM Data’s U.S. Foreclosure Market Report. This represents an increase of 36% in St Louis foreclosures from April 2023 to May 2023 and a 28% increase from a year ago.
Counties of Macoupin, St Charles and St Louis see biggest increases…
As the table below shows, Macoupin County in Illinois saw an increase of 113% in foreclosure activity in May from the month before, St Charles County a 71% increase and St Louis County a 67% Increase.
[xyz-ips snippet=”Foreclosures-For-Sale-and-Homes-For-Sale”]
St Louis Foreclosures – May 2023
A new report just released by ATTOM Data revealed that nearly one of every four homeowners (24.3 %) in the city of St Louis that have a mortgage, are underwater on equity (meaning property owner owes at least 25% more on their home than the current value). At the other end of the spectrum was St Charles County where just 3.9% of homeowners with a mortgage are underwater.
Below is a list of the larger counties in the St Louis MSA and the percentage of the mortgages in the respective county that was underwater during the 4th quarter of 2022:
- City of St Louis, MO (24.3%)
- Saint Clair County, IL (15.5%)
- Madison County, IL (13.4%)
- Franklin County, MO (10.5%)
- St Louis County, MO (9.7%)
- Jefferson County, MO (8.1%)
- St Charles County, MO (3.9%)
[xyz-ips snippet=”Foreclosures-For-Sale-and-Homes-For-Sale”]
Last month, there were 307 properties with foreclosure filings in the St Louis MSA, according to ATTOM Data’s U.S. Foreclosure Market Report. This represents an increase of 25% in St Louis foreclosures from January 2022 to January 2023.
It’s not as bad as it sounds…
While a 25% increase sounds bad, the chart below, which shows foreclosure filings for the St Louis MSA since 2006, puts it in perspective. Last year, there were 4,066 total foreclosure actions for the year so even if our foreclosure activity for 2023 would continue to be 25% higher than last years level, it would put us at a little over 5,000 foreclosures for 2023. As the chart below illustrates, if we finished 2023 at that level we would still be on the low end of the spectrum during the past 17 years.
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According to data released by ATTOM Data Research, during the fourth quarter of 2022, 35.7% of the homeowners with a mortgage within the 63118 zip code, were seriously underwater on their mortgage, meaning their mortgage balance exceeds the value of their home by 25% or more. The table below shows the 10 St Louis zip codes with the highest percentage of seriously underwater mortgages. Half of zip codes on the list are located within the City of St Louis and the other half are located in North St Louis County.
Also shown on the table is the percentage of homeowners with an equity-rich mortgage, meaning their loan balance is 50% or less of the current home value. Six of the 10 zip codes on the list have a higher percentage of equity-rich mortgages than that of seriously underwater mortgages.
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St Louis Seriously Underwater Homeowners By Zip Code – Top 10 Highest
During 2022, there were 4,066 properties with foreclosure filings in the St Louis MSA, according to ATTOM Data’s U.S. Foreclosure Market Report. This represents an increase of 46% in St Louis foreclosures from 2021 and a 48% increase from 2020.
It’s not as bad as it sounds…
While the 2022 increase sounds bad, the chart below, which shows foreclosure filings for the St Louis MSA since 2006, puts it in perspective. The foreclosure activity in St Louis last year, while higher than the two prior years mentioned above, was lower than the 14 years prior. As the chart illustrates, as recently as 4 years ago, there was over 50% more foreclosure activity in St Louis than in 2022 and 5 years ago, in 2017 it was nearly double.
Having said that, we will likely see the foreclosure activity continue to increase and I am confident that the St Louis foreclosure activity in 2023 will surpass 2022, but hopefully we won’t get to the levels we’ve hit in the recent past.
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Continue reading “St Louis Foreclosures Increased 46 Percent Last Year“
During November, there were 255 properties with foreclosure filings in the St Louis MSA, according to ATTOM Data’s U.S. Foreclosure Market Report. This represents an increase of 42% in St Louis foreclosures from November of 2021 but is a decline of over 76% from the prior month, according to the report.
As the chart below shows, 8 counties reported an increase in foreclosures from a year ago, 2 counties had a decrease in foreclosure activity and 5 had no change in activity. Macoupin County, Illinois saw the largest increase at 367% followed by Warren County, Missouri at 300%.
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St Louis MSA Foreclosure Activity – November 2022 vs November 2021
Data source: ATTOM Data Research – Copyright 2022 St Louis Real Estate News
According to results just released by Lending Tree from a survey they conducted in October, 61% of tenant’s surveyed feel their rent is more expensive than it should be. Twenty-six percent of tenants felt their rent was about what it should be, 9% didn’t know if their rent was the right amount or not and 5% actually felt their rent was too low.
How Renters Feel About Their Rent
Nearly Forty Percent Of The Renters In Missouri Feel They May Face Eviction Within The Next 2 Months
According to the results of the Household Pulse Survey conducted by the U.S. Census Bureau during the week of October 5 – October 17, about 1 in 8 tenants in Missouri reported they are not current on rent and a staggering 37.87% said they are somewhat likely to face eviction in the next 2-months.
Tenant Delinquencies In Missouri (Infographic)
(click for full-size version)
During the third quarter of this year, there were 907 properties with foreclosure filings in the St Louis MSA, according to ATTOM Data’s U.S. Foreclosure Market Report. This represents an increase of 44.43% in St Louis foreclosures from the same quarter a year ago but is a decline of 16% from the second quarter of this year, according to the report.
As the table below shows, with the exception of Bond County in Illinois, all 15 counties reported had an increase in foreclosure activity during the 3rd quarter over last year, and all at least a double-digit increase. Lincoln County, Missouri saw the largest increase at 325% followed by Macoupin County, Illinois at 293%. Only five of the 15 counties saw an increase in foreclosure activity from the prior quarter.
Given the inflation numbers announced yesterday, rising interest rates and the rest of the economic challenges that exist we are likely to see a continued increase in foreclosure activity for the foreseeable future.
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St Louis MSA Foreclosure Activity – 3rd Quarter 2022
Data source: ATTOM Data Research – Copyright 2022 St Louis Real Estate News
