Economic Overview

Missouri’s economy has demonstrated resilience and growth in recent years. In 2023, the state’s gross domestic product (GDP) reached $430 billion, marking a real growth of 2.6% compared to the previous year. This growth rate, while slightly below the U.S. average of 2.9%, positioned Missouri 25th nationwide. Notably, approximately 82% of the state’s 115 counties, including St. Louis City, experienced economic expansion from 2022 to 2023, a significant improvement from the prior period. 

Housing Market Trends

Home Prices and Sales

The Missouri housing market has witnessed a steady increase in home prices. As of December 2024, home prices in Missouri rose by 7.4% year-over-year. Concurrently, the number of homes sold increased by 10.2%, and the inventory of homes for sale expanded by 5.6%. These trends indicate a robust market with active buyer participation and a gradual increase in available properties. 

Affordability and Inventory

Missouri remains one of the more affordable states for homebuyers. The median listing price stands at $289,900, approximately 32% lower than the national average. The median sale price is $267,900, about 35.3% lower than the national average. With a median household income of $57,290, Missouri has an affordability ratio of 4.7, ranking it as the 10th most affordable state based on home prices relative to income. 

Regional Highlights

St. Louis and Kansas City

St. Louis and Kansas City are emerging as significant players in the 2025 housing market. According to Zillow’s recent forecast, these cities are among the top housing markets for 2025, characterized by strong demand and limited housing supply. This dynamic leads to increased competition among buyers, with homes often selling quickly at or above asking prices. 

Economic Indicators

Manufacturing Sector

Manufacturing continues to be a vital component of Missouri’s economy. The industry accounts for 11.6% of the state’s private-sector employment, with over 286,000 jobs across more than 8,300 establishments. Since 2018, the sector has added over 13,600 jobs, reflecting a 5% growth over five years, nearly three times the national growth rate of 1.7% during the same period. 

Bankruptcy Filings

Despite economic growth, Missouri has seen a surge in bankruptcy filings amid economic pressures. Business bankruptcy filings rose by 33.5% nationwide, while personal filings increased by 15.5%. This trend underscores the financial challenges faced by some residents and businesses, even as the broader economy expands. 

As of January 2025, Missouri’s real estate market reflects a blend of growth and challenges. The state’s economy is on an upward trajectory, with significant contributions from the manufacturing sector. The housing market shows robust activity, with rising home prices and sales, particularly in urban centers like St. Louis and Kansas City. However, the increase in bankruptcy filings highlights underlying economic pressures that warrant attention. For stakeholders in Missouri’s real estate market, staying informed about these trends is essential for making strategic decisions in the year ahead

If you have a seller who is not making sure their home is presentable to a potential buyer, remind them that, in a competitive market with more inventory than we’ve seen in some time, presentation is everything! By eliminating points the potential buyer may find fault with and bringing out the positive amenities, they are more likely to sell the home and get the price they are asking for. Here are just a few tips that will help them support your efforts as their representative in the transaction:

Let There Be Light. Buy some 100-watt bulbs to brighten the rooms, and open curtains or blinds to let light in. Unless a window faces a brick wall or some type of eyesore, open the drapes!

Garage, Not Garbage. Have a garage sale to clean out the clutter and make the garage more spacious. Your clients are moving and will need to start organizing anyway, so why wait until the last minute? Clean up oil spots in the garage or carport with a good cleanser to remove that “lived-in” appearance. The home may not be brand new, but it’s new to the potential buyer.

Make Scents. Get a nice potpourri air freshener, or keep some refrigerated cookie dough on hand to throw in the oven when a prospect is coming over. Make the house smell like a home.

Paint-relief. Consider re-painting any areas that need to be touched up, especially the front door and entryway, and any appliances that are showing their age.

Power Plants. Trim down any jungles outside, especially if they cover the house. Get rid of any half-dead houseplants. Water the lawns briefly before any visit, and keep the lawns mowed and edged.

The Price is Right. Price may be a sensitive issue, but with increased inventories and declining home values in many neighborhoods, remind your clients that every shopper in a buyers’ market is determined to get the best deal possible. Let them know that now is a good time to compare their house with others on the market in the same area, because the right price is the one thing that will sell their house faster than anything else.

The World is Your Stage. Professional staging can help to showcase the best side of a home, create more interest, and get your clients top dollar. With increased inventories, staging could provide the competitive edge you need.