Why St. Louis Is One of Zillow’s Hottest Markets This Year

St. Louis has captured national attention as one of Zillow’s top housing markets for 2025, landing at #6 on the company’s list of Hottest Housing Markets in the U.S.1 What’s driving this surge in popularity? The answer lies in a unique blend of affordability, economic vitality, and fierce competition that’s transforming the Gateway City into a real estate hotspot.

Affordability Remains a Key Draw

Unlike many major metros where home prices have soared out of reach, St. Louis remains remarkably affordable. The typical home value in the metro area is around $256,958, with average values up 3.6% over the past year2. Even within the city, the average home value is $183,406, reflecting a modest 1.7% annual increase3. This affordability, coupled with steady price growth, makes St. Louis attractive to first-time buyers, families, and investors alike1.

Strong Job Growth and Economic Momentum

St. Louis’s economy is on the upswing, with job creation outpacing new home construction. Growth in sectors like healthcare, education, and technology is drawing in young professionals and families, fueling demand for both homes and rentals14. As employment opportunities rise, the city’s population is expanding, further boosting the housing market.

Tight Inventory and Fast-Moving Homes

One of the defining features of the St. Louis market in 2025 is its tight inventory. The number of homes for sale remains below pre-pandemic levels, and while new listings are slowly increasing, demand continues to outstrip supply14. As a result, homes are selling at a rapid pace—often going under contract in as little as 9 to 12 days123. In March 2025, more than 41% of homes sold above their list price, highlighting the competitive environment buyers face5.

Balanced Market Conditions

While sellers benefit from fast sales and strong demand, buyers are seeing some relief as price increases moderate and mortgage rates edge downward. Forecasts suggest 30-year fixed mortgage rates could drop from 6.8% to around 6.3% by the end of 2025, potentially drawing more buyers into the market1. This shift is creating a more balanced market, with opportunities for both buyers and sellers depending on neighborhood and price point.

Neighborhood Hotspots and Investment Potential

Certain neighborhoods—like Kirkwood, Webster Groves, and Lafayette Square—are especially hot, thanks to their charm, amenities, and top-rated schools4. Investors are also eyeing St. Louis for its stable rental demand and potential for appreciation, particularly in revitalizing areas and up-and-coming suburbs.

“St. Louis is heating up — a mix of affordability, economic strength, and tight inventory is drawing both buyers and investors.”
— Wes Burns, Midwest BankCentre1

The Bottom Line

St. Louis’s rise as one of Zillow’s hottest markets is no accident. With affordable homes, robust job growth, low inventory, and fast-paced sales, the city offers a dynamic environment for buyers, sellers, and investors. Whether you’re looking to purchase your first home, sell at a premium, or invest in a growing market, St. Louis is a place to watch—and act—this year