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St. Louis, Other Metro Areas Rank High as Multifamily Markets to Watch—for Distress
Trepp has identified the St. Louis metro area as the number one multifamily market to watch in 2023. In this case, being a market to watch isn’t a positive: the data and analytics provider ranked the top 10 for potential distress.
“Multifamily properties have recently been considered the darling commercial real estate (CRE) property type,” Trepp says in a new report. “However, now is the time to monitor the multifamily market as there may be potential pockets of distress. Although multifamily demand tends to trend on the lower side in the second half of the year, the final months of 2022 looked particularly anemic.”
In the case of St. Louis, approximately 14% of the metro area’s multifamily properties have a DSCR of less than 1x. Others in the top 10 include San Francisco-Oakland-Hayward, Seattle-Tacoma-Bellevue, Chicago-Naperville-Elgin, Minneapolis-St. Paul-Bloomington, San Jose-Sunnyvale-Santa Clara, New York-Newark-Jersey City, Houston-The Woodlands-Sugar Land, Kansas City and Detroit-Warren-Dearborn.
- ◦Financing
- ◦Economy
