Why St. Louis Is Among the Hottest Housing Markets in 2025 — What It Means for You

If you’re thinking about buying or selling a home in St. Louis anytime soon, you’re in luck, as St. Louis was recently named one of the hottest housing markets of 2025 by Zillow. With homes selling in less than a month on average, it pays to have a solid strategy whether listing your home or making your next offer. 

Let’s explore what makes buying a home in St. Louis so appealing, and why having a good realtor by your side can help you get the most bang for your buck. 

There are several great reasons that Zillow ranked St. Louis number 6 on its 2025 list:

With average home values around $256,958, St. Louis remains one of the most affordable major metro areas. The city ranked at the top of Zillow’s list of best markets for first-time buyers in 2024, largely because young people can comfortably afford to buy a home spending no more than 30% of their income on mortgage payments. And in 2025, the Wall Street Journal/Realtor.com deemed St. Louis number one in the Top 10 Luxury Housing Markets because the median price for a home in the top 10th percentile was around $650,000 — vs. well over a million in say Chicago, Denver, or Tampa.

Not only is St. Louis one of the hottest housing markets; it landed at #18 on the Wall Street Journal’s latest ranking of the 20 hottest job markets in the U.S. The study shows that the unemployment rate is low and employment is rising. With jobs being created faster than homes can be built, people relocating to St. Louis for work are scooping up houses as soon as they hit the market.

Even though St. Louis did endure multiple tornadoes this spring, the weather here is generally safer than coastal cities. Without wildfires or hurricanes to worry about, there’s a much lower risk of major climate disasters which appeals to buyers, especially those investing in higher priced luxury homes.

According to St. Louis Realtors April Monthly Housing Report, there are around 8% more homes to choose from this year than a year ago, but most homes are on the market for just 28 days before selling. Zillow says that homes in St. Louis are selling in about 8 days. In such a high demand market, finding a property that fits your needs—and making an offer on it—requires a carefully planned strategy to prevent your dream home from slipping out from under you. 

Before making any offers, be sure that you are pre-approved for a loan in a price range you can afford. It can be heartbreaking to fall in love with a house in the $400,000 range only to find out that you’re only approved for $300,000. Plus, sellers in the hot St. Louis housing market will likely not even consider an offer without a pre-approval letter.

Banks and mortgage lenders (Nations Lending is the in-house lender for Berkshire Hathaway HomeServices Select Properties) will help you determine a reasonable budget for a house and lock in an interest rate. Especially if you are a first-time buyer, you will want to explore government-backed loan programs from the VA, USDA, and the state you live in.

You may have saved up what you think is enough for a downpayment, either from savings or proceeds from your last home sale. But keep in mind that there will be closing costs consisting of lender fees, title insurance, and attorney fees that can add up to 6% of your total loan value. Buyers are also financially responsible for most inspections, and you may decide to purchase a home warranty. Planning on having those extra funds can prevent you from being stuck without enough money on closing day — and losing the home to another buyer.

Even though inventory may be low in the price range you’re looking for, you don’t want to live in a home you don’t love (or even like). If you have two kids and work remotely, it might not make sense to tour a house with two bedrooms (unless your realtor can verify there is an office space). Need a garage to protect your classic car? Don’t waste your time on a house with street parking. And if you’re nearing retirement and don’t want to climb steps to your bedroom, skip the two-story listings altogether.

When it comes to landing a home in this tight market, priorities are different from preferences. For instance, many millennial buyers want a dedicated room for a home gym, and smart features like a Nest thermostat and remote-controlled blinds. If a house you love checks other boxes except things that “would be nice,” it might be worth compromising. A treadmill and weights can fit nicely in an unfinished basement, and those smart features can always be purchased later. 

When you find the perfect house, chances are you’ll want to jump on it—and we agree that’s necessary in one of the hottest markets. But buying a home is a big investment, and you don’t want to get stuck with a money pit, or overpaying for something that just isn’t worth it. An experienced realtor will point out flaws that you might miss, and demand inspections that will uncover hidden future repairs or dangers. A good agent who knows the area will also be honest about the top price you should be willing to pay, and help you make a solid offer.

Low inventory and steady demand for housing in St. Louis create an ideal environment to list now. However, because homes typically sell fast, if yours doesn’t draw interest in the first few days it may end up sitting on the market for months…with buyers wondering why it hasn’t sold. Here are a few tips to bring offers in right away and choose the best buyer.

No matter how desperate buyers are, they will turn away from dirty, messy homes. Plus, a Top Agent Insights study by Homelight found that a decluttered home can add as much as $6,500 to a sales price, and a deep clean can add $3,700. Go through closets, cabinets, and the garage to get rid of things or put them in storage, clean carpets, and dust and mop every nook and cranny to make your property sparkle.

Buyers will notice broken things like light fixtures, door handles, and toilets that don’t flush. These are easy fixes with a quick trip to the hardware store. If a refrigerator or dishwasher is broken, fix or replace it, too, since having working appliances can help increase the value of your home. You should also consider making other affordable updates that might boost your asking price, like replacing stained carpet or leveling a sunken sidewalk.

While a move-in-ready home in a desirable neighborhood will probably see multiple offers, that will only happen if the property is priced fairly. Buyers will know (especially if they’re working with a good agent) what comparable homes in the area are worth, and won’t even look at your home if it’s overpriced. Ask for what it’s worth, and chances are you’ll receive offers over your listing price anyway.

With so many buyers frantically searching for the right home, it’s highly possible that you’ll receive multiple offers. One might be a contingency because the buyer still needs to sell their home. One might be a lower bid but with cash in hand. And one might be way over asking price but with no pre-approval. It can be overwhelming to decide which is best. A realtor who has your best interest in mind will look over each offer and tell you which one will get you the highest profit and the best chance of a quick, easy transition.

Whether you’re selling or buying a home in St. Louis, a Realtor at Berkshire Hathaway HomeServices Select Properties would love to help. We’re here to discuss your needs and concerns, so contact us today.