Why Buying a Home in St. Louis is Still a Smart Move in 2025

Written by David Dodge 

According to Dennis Norman, a contributor to St. Louis News, a recent interactive map has provided valuable insights into the ongoing debate of whether it’s more financially prudent to buy or rent a home in various regions across the United States. The findings for the St. Louis metropolitan area reveal a compelling case for homeownership in 2025. Let’s delve deeper into the specifics and implications of this data.

The Landscape of Homeownership in St. Louis

The analysis focuses on three pivotal areas within the St. Louis region: St. Charles County, St. Louis County, and St. Louis City. Each of these areas presents unique characteristics that influence the affordability of buying versus renting. The data indicates that purchasing a home remains the more advantageous option in all three locales, although the degree of affordability varies significantly.

This graph includes data sourced from ATTOM and Tableau Public. It is for informational purposes only and should not be considered financial or investment advice.

St. Charles County

• Median Home Price: $358,698
• Home Affordability: 40.6% of income
• Rental Affordability: 45.9% of income
• Weekly Wages: $1,115

St. Charles County stands out as a strong market for buyers. With a median home price of $358,698, the area offers a relatively high level of home affordability, consuming about 40.6% of the average income. This is particularly noteworthy when compared to rental costs, which take up 45.9% of income. The higher weekly wages in this county contribute to a more favorable financial landscape for potential homeowners. The combination of solid income levels and better affordability makes St. Charles County an attractive option for those looking to invest in real estate.

St. Louis County

• Median Home Price: $235,000
• Home Affordability: 23.0% of income
• Rental Affordability: 24.9% of income
• Weekly Wages: $1,392

In St. Louis County, the median home price is significantly lower at $235,000, which enhances the appeal of homeownership. The data shows that buying a home in this area consumes only 23.0% of the average income, while renting takes up 24.9%. This indicates that homeownership is not only more affordable but also a more stable financial commitment compared to renting. The relatively high weekly wages further bolster the case for buying, as residents can allocate a smaller portion of their income toward mortgage payments compared to rental costs.

St. Louis City

• Median Home Price: $190,000
• Home Affordability: 17.4% of income
• Rental Affordability: 28.1% of income
• Weekly Wages: $1,436

St. Louis City offers the most affordable home prices in the metro area, with a median price of just $190,000. This translates to a mere 17.4% of the average income being spent on homeownership, making it an incredibly attractive option for many residents. In contrast, rental costs consume 28.1% of income, highlighting the financial burden that renting can impose. The higher wages in the city relative to home prices further enhance the appeal of buying, as residents can enjoy the benefits of homeownership while maintaining a comfortable lifestyle.

The Bigger Picture: Why Buying is Better

The overarching theme from the data is clear: despite rising housing costs, purchasing a home is still a more financially sound decision than renting in the St. Louis area. Homeownership not only provides stability and security but also serves as a long-term investment. As property values appreciate over time, homeowners can build equity, which is a significant advantage over renting, where monthly payments contribute to a landlord's wealth rather than the tenant's.

Moreover, owning a home often comes with tax benefits, such as mortgage interest deductions, which can further enhance the financial advantages of buying. Homeowners also have the freedom to customize their living spaces, which is typically not an option for renters.

Conclusion: A Bright Future for Homebuyers

As we move further into 2025, the evidence clearly supports the idea that buying a home in St. Louis is not only feasible but also a wise investment for the future. The data from St. Louis News underscores the benefits of homeownership in the current market, particularly in light of the significant disparities between buying and renting costs.

For those contemplating their housing options, the findings suggest that now may be an opportune time to enter the housing market. With favorable affordability metrics across the St. Louis metropolitan area, prospective buyers can take advantage of the current conditions to secure a home that meets their needs and aligns with their financial goals.

In summary, the St. Louis real estate market presents a promising landscape for homebuyers in 2025. With the data supporting the notion that buying is more advantageous than renting, individuals and families can confidently pursue homeownership as a pathway to financial stability and long-term wealth.