Real-Estate Values

PUBLISHED AUGUST 2025

As the U.S. housing market continues its uneven recovery in mid-2025, sellers still command near-peak pricing from the pandemic boom—despite interest rate fluctuations—while buyers face a tough calculus: wait for potential rate cuts or buy now before prices climb further. But in Missouri, the equation tilts decisively in favor of opportunity, with home values offering unmatched affordability and commercial real estate costs providing a competitive edge for businesses.

The Residential Advantage: Homeownership Within Reach

Nationally, the median home price sits at $447,054, heavily skewed by high-cost markets like California ($865,100). Missouri, however, stands out as a haven for affordability:

• St. Louis (median: $252,000)

• Kansas City (median: $255,000)

• Springfield (median: $230,900)

With a statewide home median of $251,900—a 34 percent discount compared to the U.S. average—Missouri not only makes homeownership accessible but also enhances employee quality of life. Lower housing costs mean workers can secure more space for less, leaving greater disposable income—a key advantage for employers competing for talent.

Exploring affordability from another angle, Missouri homeowners are significantly less cost-burdened than Americans on average: While 17.4 percent of Show-Me State owners spend more than 30 percent of their monthly income on housing costs, that figure leaps to 22.2 on a national scale.

Commercial Real Estate: A Cost-Saving Powerhouse

The same value proposition extends to commercial real estate, where Missouri’s office and industrial markets deliver significant savings:

In the office market, for example, while remote work continues to pressure office demand nationally, Missouri’s Class A asking rents remain a fraction of coastal prices:

• St. Louis: $22.22/sq ft

• Kansas City: $23.25/sq ft

• National Average: $42.46/sq ft (85% higher)

Therein lies much of the magic behind what we call the Missouri Value Proposition. For Show-Me State businesses with coastal footprints, Missouri offers a built-in competitive cost advantage relative to their big-city peers, making this an attractive hub for operations.

On the industrial front, the boom here continues. Industrial demand remains robust, with Kansas City and St. Louis outperforming national averages for affordability, but that comes with a slight downside—demand is stronger here, driving vacancy rates down:

• Kansas City: $6.31/sq ft asking rent (4.6% vacancy)

• St. Louis: $5.99/sq ft (5.2% vacancy)

• Nationally: $10.12/sq ft (7.1% vacancy)

With strong infrastructure—including Mississippi River logistics—Missouri’s industrial sector shows no signs of slowing.

The Bottom Line: Missouri Delivers Value

From affordable housing to below-market commercial rents, Missouri’s real estate landscape offers a compelling proposition for residents and businesses alike. In an era of economic uncertainty, the Show-Me State proves that low costs and high opportunity can coexist—making it one of the most strategic markets in the nation.

For investors, employers, and homebuyers, Missouri isn’t just an alternative—it’s a smart bet.