How Much Income Do You Need to Buy a Home in St. Louis in 2025?

Written by David Dodge 

Buying a home is one of the biggest financial decisions many of us will ever make, and if you’re thinking about taking the plunge in St. Louis, Missouri in 2025, there’s a lot to consider. St. Louis is known for its affordable housing market compared to other major cities in the U.S., which is great news for prospective buyers. Whether you’re a first-time homebuyer or looking to upgrade, it’s essential to understand what kind of income you need, how home prices are trending, and what programs are available to make homeownership more attainable.

In this blog, we’re diving into the details about how much you need to earn to afford a home in St. Louis, the differences between renting and buying, and the factors that could impact your home-buying decision. If you’re wondering whether it’s a good time to buy, keep reading—this guide will help you make an informed choice.

How Much Does a Home Cost in St. Louis in 2025?

The first step in understanding if you’re ready to buy a home is knowing how much it will cost. As of January 2025, the median sale price for a home in St. Louis is about $236,667. This price is considered fairly affordable, especially when you compare it to the national average, which is much higher.

So, how much income do you need to comfortably afford this median-priced home? Based on standard lending guidelines, you’ll need to make about $74,263 a year. This estimate assumes you’re making a 20% down payment and are working with typical mortgage rates for 2025.

Let’s break it down a bit further. Lenders typically recommend that no more than 28% of your gross monthly income should go toward your housing costs. For a home priced at $236,667, your monthly mortgage payment would likely be around $1,731. If that fits within your monthly budget, then you’re in a good spot to start exploring homeownership in St. Louis.

How St. Louis Stacks Up to Other U.S. Cities

When you hear about the cost of buying a home in St. Louis, you might wonder: How does this compare to other cities across the country?

To put things into perspective, the national median home price as of January 2025 is around $418,489. This means that across the U.S., you’d need an income of about $117,000 to afford a home at that price. That’s a huge difference compared to St. Louis! While home prices have been rising in many parts of the country, St. Louis remains one of the more affordable places to buy, which is a significant advantage for buyers looking for value. If you're tired of feeling priced out in bigger cities like New York, Los Angeles, or Chicago, St. Louis offers an attractive option where your dollar can go much further. For those considering relocation or wanting to get started in real estate, this is a huge draw.

Buying vs. Renting in St. Louis: What’s the Smarter Financial Move?

One of the most important decisions when considering homeownership is whether to buy or rent. While renting may seem like the easier option in the short term, it may not always be the most financially wise choice in the long run.

In St. Louis County, the median home price is even lower than the city’s, sitting at around $235,000. When you do the math, you’ll see that homeownership is quite affordable for many people. In fact, the percentage of income spent on a mortgage in St. Louis County is around 23%, while renters are paying about 24.9% of their income on rent. This difference is key because it suggests that, in many cases, buying a home could actually be more affordable than renting. That’s because, with a mortgage, you’re building equity—something you don’t get when you rent. If you’re paying rent, you’re helping to pay off someone else’s property, but if you buy, your payments are working toward something you’ll eventually own. Additionally, homeownership offers long-term financial benefits. Property values tend to rise over time, and owning a home can provide stability, whereas rent can increase year after year. If you’re on the fence, it may be worth considering whether buying might be more beneficial for you in the long run.

St. Louis Home Prices in 2025: What’s the Outlook?

Home prices in St. Louis have been steadily climbing, with the average home value increasing by about 4.1% over the last year. The average price of a home is now around $252,067. While this is a relatively modest increase compared to some other major markets, it still shows that the St. Louis housing market is strong, and demand is increasing.

Why does this matter? A steady rise in home values often means there is more interest in the area. For homebuyers, this is an encouraging sign that property values are likely to keep increasing, making it a good time to lock in a deal before prices go even higher. But even with the increase in home values, St. Louis is still considered one of the most affordable cities for homebuyers in the U.S. Compared to places like San Francisco, Boston, or Miami, St. Louis continues to offer good value.

Affordable Housing Programs: Support for St. Louis Homebuyers

The city of St. Louis is also making strides to keep homeownership accessible through various programs and grants. In March 2025, the City of St. Louis announced a $16 million Neighborhood Transformation Grant to support housing developments, infrastructure improvements, and green spaces.

This initiative is part of a broader effort to revitalize neighborhoods and improve access to affordable housing. Programs like this are incredibly helpful for first-time homebuyers, as they often provide down payment assistance, lower interest rates, and other financial resources that make buying a home more attainable.

If you’re interested in purchasing a home in St. Louis, be sure to research these programs and see if you qualify. They can make a significant difference in reducing your upfront costs and helping you get into a home faster.

What to Keep in Mind Before Buying a Home in St. Louis

While St. Louis is a great place to buy a home, it’s essential to take a moment and evaluate your personal financial situation before you dive in.

• Can you afford the down payment? While many buyers aim for 20%, there are also programs that allow for smaller down payments, so don’t assume that 20% is your only option.

• Consider mortgage rates: Interest rates can fluctuate, so it’s important to lock in a good rate when you can. A lower interest rate can save you thousands over the life of your loan.

• Think about long-term expenses: In addition to the mortgage, homeownership comes with other costs, like property taxes, insurance, and maintenance. Make sure your budget accounts for these ongoing expenses.

By planning ahead and being realistic about what you can afford, you can set yourself up for success in the St. Louis housing market.

Is Now the Right Time to Buy a Home in St. Louis?

All things considered, 2025 is a great time to buy a home in St. Louis. With affordable home prices, a steady increase in home values, and plenty of government programs to support buyers, it’s a market that offers opportunities for both first-time buyers and seasoned investors. However, it’s important to do your research, assess your financial health, and consult with local real estate professionals before making any major decisions. Homeownership is a big commitment, but if you’re ready and prepared, St. Louis offers an affordable and thriving market to begin your journey. By staying informed, keeping an eye on the market, and taking advantage of available resources, you can make the most of what St. Louis has to offer and set yourself up for long-term success as a homeowner.