St Louis Housing Affordability - St Louis Real Estate News

Trump Signs Executive Order to Lower Homeownership Costs, Including Mortgage Insurance and Refinancing Fees

By Dennis Norman, on October 24th, 2026

Trump Order to lower home ownership costs

President Trump signed a new executive order on October 22, 2026, aimed at reducing the cost of homeownership, and there are a couple of provisions that could make a real difference for homeowners, including here in St. Louis. The order focuses on eliminating unnecessary mortgage insurance, reducing refinancing costs, and making it easier and less expensive to build homes.

One of the more interesting provisions would require Fannie Mae and Freddie Mac, subject to approval by the Federal Housing Finance Agency (FHFA), to establish a pilot program to automatically identify homeowners who have built up enough equity to cancel their Continue Reading →

Could This SpaceX-Inspired Homebuilder Change the Way We Build Starter Homes?

By Dennis Norman, on August 17th, 2026

For years we’ve heard plenty of talk about America’s housing affordability problem, but most of the proposed solutions seem to come down to some version of the same thing: lower interest rates, loosen zoning, subsidize buyers or somehow convince traditional homebuilders to build less expensive homes. A relatively new company in Austin, Texas, is taking a very different approach. The American Housing Corporation is trying to reinvent how the house itself is built.

What caught my attention is that this isn’t simply another modular-home manufacturer. American Housing is attempting to combine real estate development, manufacturing, software and engineering into one Continue Reading →

St. Louis Lands in Top 15 Most Affordable Housing Markets… Opportunity Is Still Here

By Dennis Norman, on April 15th, 2026

St Louis Housing Affordability -Ranked 11th in Nation

St. Louis continues to stand out nationally for something that matters to just about every homebuyer… affordability. According to the latest rankings, St. Louis is now the 11th most affordable housing market in the U.S., reinforcing what many local buyers and investors already know… you simply get more for your money here than in most major metro areas.

As the graphic shows, cities like Pittsburgh, Cleveland, and Oklahoma City top the list, but St. Louis sits comfortably in the upper tier, ahead of markets like Grand Rapids, Little Rock, and Columbus. That’s impressive when you consider St. Louis offers not Continue Reading →

Mortgage Rates Aren’t Dropping—Here’s a Reason Most Buyers Aren’t Seeing

By Karen Moeller, on April 10th, 2026

What’s happening overseas is quietly influencing mortgage rates here at home—and most buyers don’t realize it

Buyers across the St. Louis market have been watching mortgage rates closely, waiting for signs of relief. Many expected those signs to show up by now. They haven’t.

Part of the reason is playing out far from St. Louis, and most buyers never see it. Mortgage rates are closely tied to the bond market, particularly long-term Treasury yields and mortgage-backed securities, but not always in the way people expect. In simple terms, when investors demand higher returns to lend money, borrowing becomes Continue Reading →

We Keep Talking About Housing Affordability Because We Refuse to Ask the Right Questions…

By John Donati, on February 7th, 2026

We have been “debating” housing affordability for years now, but the conversation keeps circling the same drain. There are not enough smaller, attainable homes for first‑time buyers. Nobody disputes that. Everyone agrees it is a problem, most are willing to call it a crisis, and yet, after countless panels, policy papers, incentives, and task forces, the bottleneck is still right where we left it.

If demand for starter housing has been obvious for more than a decade, why does the market still fail to produce it? Is it land costs? Labor shortages? Interest rates? Zoning? Materials? Regulation? Capital? Or is Continue Reading →

If We Really Want Affordable Housing, Here Are the Levers That Actually Work

By Karen Moeller, on February 6th, 2026

In my last article, we stepped back from the headlines and looked at what really drives affordability. Not political sound bites. Not whether prices should go up or down. Just the fundamentals. Supply, construction costs, financing, and whether the monthly math works for everyday families.

Once you see it that way, the next question becomes obvious. If those are the levers, how do we actually move them? Just “build more homes” sounds simple until you talk to a builder who cannot make the numbers work. There is no big red easy button, but the good Continue Reading →

Is St. Louis Still Affordable? See How Missouri and Illinois Stack Up in New Housing Report

By Dennis Norman, on May 7th, 2025

According to a recent report by Realtor.com, Missouri and Illinois rank in the middle of the pack when it comes to home affordability, with Missouri landing at #22 and Illinois at #30 among all 50 states and the District of Columbia. While neither state earned a top grade, both remain relatively affordable compared to coastal and western markets. Missouri received a “C” grade with a REALTORS® Affordability Score of 0.82 and a median listing price of $298,696. Illinois, also graded “C”, had a slightly higher affordability score of 0.86, a median home price of $316,613, and a notably higher median Continue Reading →

Looking for Affordable Housing? St. Louis Ranked 3rd in the World for 2024!

By Dennis Norman, on September 4th, 2024

In a newly released report by the Center for Demographics and Policy at Chapman University, St. Louis has been ranked the third most affordable housing market in the world for 2024. The Demographia International Housing Affordability report highlights that St. Louis continues to offer buyers some of the best value when it comes to housing, beating out major cities across the U.S. and globally.

For homebuyers in St. Louis, this is exciting news. While inflation and rising costs are still on the minds of many, the fact that the metro area remains such an affordable place to own a home Continue Reading →

Missouri Ranks 9th for Lowest Mortgage Payments in the U.S.

By Dennis Norman, on August 5th, 2024

States with the lowest monthly home payments

According to a recent study by LendingTree, Missouri ranks 9th in the nation for the lowest monthly mortgage payment. The report reveals that while the average monthly payment on a new mortgage in the U.S. is $2,317, Missouri’s average monthly payment is $1,792. This makes Missouri’s payments approximately 23% less than the national average, positioning it favorably among states with more affordable housing costs. This is particularly notable considering the current economic climate, where mortgage rates remain relatively high, and home prices continue to be steep.

The LendingTree analysis, which examined mortgages offered across the nation from January 1 through Continue Reading →

Luxury Living In St Louis: The Top 10 Cities with Highest Home Prices

By Dennis Norman, on April 11th, 2024

Top 10 Luxury Home Markets in St Louis, MO

The real estate market in St. Louis is notably diverse, featuring homes that are, on average, quite affordable. However, this affordability doesn’t preclude the existence of luxury markets within the city. Presented below is an exclusive list from MORE, REALTORS® detailing the top 10 cities in the St. Louis MSA where homes command the highest average selling prices.

Key takeaways from this list include:

Huntleigh dominates with the highest average sale price of $2,097,249 and impressively quick transactions, with homes spending an average of just 20 days on the market. It’s important to note that these figures are based on Continue Reading →

Smaller, Personalized Homes Dominate 2024 Trends: Insights from NAHB Study

By Dennis Norman, on February 29th, 2024

The dynamics of the new home market are shifting significantly as we advance into 2024, with a clear trend towards smaller, more personalized living spaces emerging nationwide. This evolution reflects a broader change in homeowner preferences and market conditions, according to the latest “What Home Buyers Really Want” study by the National Association of Home Builders (NAHB).

Recent data points to a decline in the average size of new homes, continuing a trend that began following a brief uptick in 2021. The average new home size has decreased to 2,411 square feet in 2023, marking the smallest average size in Continue Reading →

St. Louis Housing Affordability Increases Slightly In Last Quarter of 2023

By Dennis Norman, on February 8th, 2024

The latest figures from the NAHB/Wells Fargo Housing Opportunity Index reveal that 70.8% of people in the St. Louis MSA, with a median income of $101,200, could afford to buy a median-priced home. This percentage has seen a slight increase from the 3rd quarter of 2023, when it was 69.3%. As demonstrated in the chart below, this positions St. Louis as the 31st most affordable metro area for home purchases, out of the 242 that were ranked.

Search St Louis Homes For Sale Search St Louis Upcoming OPEN HOUSES

St Louis MSA Housing Affordability & National Rank (2014-2023)

Continue Reading →

Exploring the 2024 Rental Affordability Report: Insights for the St. Louis Real Estate Market

By Dennis Norman, on January 18th, 2024

Today, ATTOM released its ‘2024 Rental Affordability Report,’ presenting a comprehensive analysis of the current state of home rental and ownership in the United States. The report indicates that renting a median three-bedroom home is more affordable than owning a similarly-sized property in nearly 90% of the U.S. markets. This trend continues despite rents growing faster than home prices. A significant finding for our industry is that both renting and owning pose substantial financial burdens on average workers, consuming over a third of their wages in most county-level housing markets.

Data for St. Louis County is consistent with the report.

Continue Reading →

Report Shows Average Wage Earner can Afford to Buy a Home In over half of the St Louis Areas Largest Counties

By Dennis Norman, on December 21st, 2023

A report just released by ATTOM Data Research details housing affordability for the largest counties in the St. Louis metro area for the 3rd quarter of 2023. Affordability, measured by the percentage of wages needed to buy a home, shows considerable variation across counties in Illinois and Missouri. This metric is influenced by factors such as median sales prices and average wages.

For instance, in the County of St. Louis City (yes, it’s odd, but it’s a county), it only takes 17.3% of the annualized wages of an average earner to buy a median-priced home. In contrast, in St. Charles Continue Reading →

Interest Rates Hit Two-Month Low, Easing from 23-Year High

By Dennis Norman, on November 14th, 2023

The 30-year fixed mortgage interest rate has experienced a significant drop, reaching 7.4% – the lowest since September 20th, nearly two months ago. This shift provides a much-needed reprieve in the housing market, particularly following the rate’s surge to 8.03% on October 19th, a peak unseen since August 7, 2000, 23 years ago.

The October high had introduced uncertainty and slowed down the real estate market, impacting buyer affordability and seller activity. The recent decline to 7.4%, though still high historically, is a positive sign, potentially reinvigorating interest and activity in the housing market.

This change in rates is key Continue Reading →

St. Louis Ranks 9th Lowest for Average Down Payments among Top 50 U.S. Metros

By Dennis Norman, on November 14th, 2023

In the world of real estate, down payments have emerged as a significant financial factor for homebuyers across the United States, and St. Louis is no exception. A recent report from LendingTree sheds light on the dynamics of down payments, and it’s essential for prospective buyers and sellers in St. Louis to understand how the local market fares in this regard.

St. Louis Down Payment Statistics:

St. Louis ranks 42nd out of the nation’s 50 largest metropolitan areas in terms of average down payments. This ranking places it 9th in terms of the lowest down payment amount in the 50 Continue Reading →

St Louis Home Affordability Declines Double Digits From a Year Ago

By Dennis Norman, on September 29th, 2023

As a result of rising interest rates and home prices at levels higher than increases in income, homes in St Louis continue to become less affordable. In fact, according to data just released by ATTOM Data Research, home affordability declined double digits during the 3rd quarter of this year in all five counties that make up the St Louis core market. As the info graphic below illustrates, the percentage of wages needed to buy a home have, depending upon county, increased about a third to almost half from the historical “norm”.

Least affordable ever…

Three of the five counties that Continue Reading →

Do the Fed Funds rate and M2 money supply really matter to the St Louis real estate market?

By Dennis Norman, on March 25th, 2023

For the past several months there have been many reports anticipating the moves of the Federal Reserve regarding interest rates then followed by tons of articles, blog posts and videos analyzing then predicting the impact of the Fed’s decision on the economy. The other popular topic in this area is the “Money Supply”, usually M2 money supply and whether it’s increasing or decreasing as well as the impact on the economy.

Should St Louis homeowners and potential home buyers really care about the Fed Funds rate or M2 money supply?

First, let’s talk about the Fed Funds rate and what Continue Reading →

FHA Loans Just Became A Little More Affordable

By Dennis Norman, on February 22nd, 2023

Today, the U.S. Department of Housing and Urban Development (HUD) announced a reduction in the mortgage insurance premium charged to borrowers on FHA loans. The mortgage insurance premium is a charge over and above the interest on the loan that is the fee to HUD for insuring the loan. Currently, the FHA mortgage insurance premium varies from 0.45% to 1.05% of the loan amount depending upon the loan term (15 or 30 years) and the LTV (loan to value). Effective with FHA mortgages endorsed for insurance by FHA on or after March 20, 2023, the rate will be reduced by Continue Reading →

St Louis Home Prices and Rental Increasing Faster Than Wages

By Dennis Norman, on January 19th, 2023

A report just released by ATTOM data shows that St Louis home prices are rising at a rate significantly higher than the rate wages in St Louis are rising and St Louis rental rates are increasing at rates higher than home prices. As the chart below shows, during the past year, wages in the St Louis metro area increased 3.8% however, home prices in St Louis increased 7.9% and rental rates increased 11.2%.

Search St Louis Homes For Sale Search St Louis Upcoming OPEN HOUSES St Louis MSA – Housing Affordability

Data source: ATTOM Data – Continue Reading →

Builders’ Housing Affordability Index Drops To Lowest Level Since Inception

By Dennis Norman, on November 9th, 2022

The National Association of Home Builders (NAHB) and Wells Fargo, jointly publish quarterly their Housing Opportunity Index (HOI) which shows the affordability, or lack thereof, of homes to a typical family. To arrive at an index value the median home price of recently sold homes for an area is taken into account as well as the median income for a family in that area. From this data the index is computed to show how affordable the typical home is to a typical family. The higher the index, the more affordable homes are to buyers in that market and the lower Continue Reading →

Why St Louis Home Prices Are Going To Decline

By Dennis Norman, on October 6th, 2022

A little over two weeks ago I wrote my most recent article addressing St Louis home prices titled “Will St Louis Home Prices Decline?” in which my short answer was “yes”, but kind of tongue in cheek and based upon the seasonality of home prices, but my longer answer was more vague. I mentioned that there certainly is a correction coming but pointed out that there are so many variables that will affect prices that it is hard to say to what extent this correction will be. While this is still true, a lot has happened in the short time Continue Reading →

Will St Louis Home Prices Decline?

By Dennis Norman, on September 20th, 2022

The short answer is yes. They decline every year as we head into winter due to the seasonal nature of the business. If you look at the first chart below which depicts the median price of homes sold in the St Louis 5-County core market since 1998, you will notice a very consistent pattern of prices rising in the spring and summer, then declining in the fall and winter. For the most part, the other pattern you will see is that the peak each spring is higher than the spring before and the bottom each winter is higher than the Continue Reading →

Mortgage Interest Rates Fall For Two Consecutive Weeks

By Dennis Norman, on May 27th, 2022

On May 12th the 30-year fixed rate mortgage interest rate hit 5.3%, the highest rates since June 2009, according to Freddie Mac’s Primary Mortgage Market Survey®. As the chart below illustrates, mortgage interest rate have declined the last two consecutive weeks falling to 5.10% yesterday, the lowest rate since April 28th.

There are more affordable options…

The chart I selected to show below also shows the mortgage interest rates for 15-year mortgages as well as something almost no one has had a reason to talk about for several years, adjustable rate mortgages (ARM’s). With mortgage interest rates as low as Continue Reading →

Stop! Who Goes There? A Smart Lock Knows…

By John Donati, on February 24th, 2022

How ‘smart’ can a smart home be if its locks can’t tell you who is coming and going and when they came and went? In my opinion, that’s not a very ‘smart’ house. Nowadays, we use our phones for much more than talking to other people. To name a few, we use them for directions, email, and paying for groceries. So why wouldn’t we use them to remotely lock and unlock our doors too?

From my previous articles you might remember that one of the primary requirements in a smart home is either smart temperature control or a smart security Continue Reading →

Why St Louis Is Not Headed Toward Another Housing Market Bubble or Crash

By Dennis Norman, on May 5th, 2021

Lately, I’ve noticed several articles questioning whether the kind of crazy real estate market we’ve in for a while now is reminiscent of the early 2000’s which lead to a housing bubble that eventually burst in 2008. Granted, even in St Louis where we tend to not see the market extremes one way or the other like the coasts do, one could get the idea that maybe we’re headed that way with buyer’s fighting over new listings and bidding wars that have homes often selling for over the list price. However, in my humble opinion, this market is very different Continue Reading →

St Louis’s Most Expensive Home Sale In The Last Two Years

By Dennis Norman, on February 20th, 2021

One of the many benefits to living in St Louis is it’s a very affordable place to live and much easier to be a homeowner than in most other major metro areas. Having said that, we do have areas, such as Ladue, Huntleigh, and Clayton to name a few where we do see home prices that are out of reach for most of the folks living here. One such example is a magnificent 10,000+ square foot Ladue manse that sold earlier this month. At a final sales price of $6,150,000, it is the highest-priced home sale in the REALTOR® MLS Continue Reading →

St Louis Has 5 Municipalities Where Average Sold Home Is Over $1 Million

By Dennis Norman, on January 25th, 2021

One of the benefits to living in St Louis we often hear about is how affordable it is compared with many other metro areas around the country. Granted, one of the things that contribute to the “affordability” is the price of homes but that doesn’t mean we don’t have areas with pricey real estate here. The list below is part of the list showing what the average price homes sold for in every municipality in the St Louis MSA during the past 12 months and reveals the five municipalities where the average home price exceeded $1 Million.

Leading the list Continue Reading →

Have Home Prices Increased Too Much Too Fast? Is A Correction Coming?

By Dennis Norman, on July 2nd, 2020

Not only has it become common today for homes to sell as soon as they hit the market but receiving offers from multiple buyers and at prices that equal or even exceed the asking price is common as well. While this is an illustration of Economics 101, the rule and supply and demand, when the demand exceeds the supply (such as in the housing market in many price ranges and areas), prices increase this can also be a reminder of times past when home prices rose quickly for several years, then retreated rather abruptly. The most recent example of Continue Reading →

St Louis Real Estate Market Update VIDEO – May 2020

By Dennis Norman, on May 14th, 2020

The St Louis real estate market continues to be on the upswing and recovering from the impact of COVID-19. The pandemic did slow the St Louis real estate market down for a while but it appears to be recovering quite quickly. Get all of this and more in this month’s update. Interest rates, the “cherry on top”. In case the market rebound isn’t enough, mortgage interest rates are at near historic lows making now a great time, and an affordable time, to buy a house if you are in a position to do so. [xyz-ips snippet=”Market-Update-Video-Package”] [xyz-ips snippet=”Seller-Resources—Listing-Targeted”] Continue Reading →