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.
