Buying vs. Renting in St. Louis: Which One Makes More Financial Sense?

by Rhonda Fischer

The decision to buy or rent in St. Louis isn’t just about today’s costs—it’s about your long-term financial goals, lifestyle preferences, and market conditions.

According to ATTOM’s 2025 Rental Affordability Report, homeownership is more affordable than renting in nearly 60% of U.S. markets, including many parts of the St. Louis metro area. But does that mean buying is always the right choice? Not necessarily.

In this guide, we’ll break down:
✅ What the data says about buying vs. renting in St. Louis
✅ When buying makes sense
✅ When renting is the smarter choice
✅ Key factors to consider before making your move

Let’s dive in!

Buying vs. Renting: What the Data Says

Each year, ATTOM analyzes home prices, rental rates, and wages across hundreds of U.S. counties to determine whether buying or renting is more affordable. The 2025 report found three key takeaways:

🔹 Buying a home is cheaper than renting a 3-bedroom in nearly 60% of U.S. markets.

In St. Louis, rising rent prices make homeownership a more budget-friendly option for many.

🔹 Housing is expensive—whether you rent or own.

In Missouri, housing costs take up 25% to 60% of the average worker’s wages, making affordability a key challenge.

🔹 Down payments remain a barrier for homebuyers.

Even though monthly homeownership costs are lower than rent, saving for a down payment and closing costs can be a major hurdle.

When Buying a Home in St. Louis is the Right Move

Despite rising home prices, ATTOM’s data shows that in most cases, monthly mortgage payments are lower than rent for a comparable home.

Buying is the best option if:

✅ You Plan to Stay in St. Louis for a Few Years

Real estate is a long-term investment. If you plan to live in your home for at least five years, you’ll have time to build equity and offset upfront costs like closing fees.

✅ You Can Afford the Upfront Costs

In St. Louis, the average home price is around $250,000, which means:

A 3% down payment = $7,500
A 20% down payment = $50,000

Plus, you’ll need to budget for closing costs, home inspections, and emergency savings. If you have enough savings without stretching your budget, buying makes more sense.

✅ You Want to Build Wealth

Renting is like paying for a service—you get a place to live, but you don’t build equity. Every mortgage payment increases your homeownership stake, helping you build long-term wealth.

✅ You Need More Space

In St. Louis, renting a three-bedroom home can cost more than a monthly mortgage payment. If you’re looking for more space for your family, buying may be the better financial move.

However, if you’re comfortable in a one-bedroom or two-bedroom rental, renting could still be the cheaper option.

When Renting in St. Louis is the Better Choice

Even though homeownership is often more affordable, renting still has key advantages—especially if flexibility and financial security are your top priorities.

❌ You Need Flexibility

Not sure about your job situation, relationship status, or long-term plans? Renting gives you the freedom to move without the stress of selling a home.

❌ You Don't Have an Emergency Fund

Owning a home comes with unexpected costs:

HVAC repairs ($5,000 – $10,000)
Roof replacement ($3,000 – $15,000)
Plumbing issues ($2,000 – $10,000)

If you don’t have 3–6 months of savings, it may be better to rent until you have a financial cushion.

❌ You Live in a High-Cost Area

Certain neighborhoods in St. Louis have higher home prices that may require a large down payment and high mortgage payments. If owning would stretch your budget too thin, renting may be the safer choice.

❌ You Don't Want Maintenance Responsibilities

Homeownership means handling repairs, maintenance, and property taxes. If you’d rather call a landlord when something breaks, renting is the hassle-free option.

Key Takeaways: Should You Buy or Rent in St. Louis?

The right choice depends on your finances, lifestyle, and goals:

✔️ Buy if you want stability, are financially prepared, and plan to stay in one place.
✔️ Rent if you need flexibility, aren’t ready for homeownership costs, or live in a high-cost area.