Missouri’s housing market in 2018–2023 underwent dynamic changes, especially for budget-conscious homebuyers earning under $250,000 annually. These moderate-income households make up the bulk of Missouri’s buyers, given that the state’s home prices have historically been well below the national average. This period saw a surge in home prices, shifts in where and what people bought, and evolving buyer behaviors largely influenced by economic ups and downs.
Statewide Market Overview (2018–2023)
Missouri’s housing market was robust from 2018 through 2021, followed by a notable cooldown in 2022–2023. Annual home sales reached near-record levels around the end of the 2010s. In 2018, nearly 102,000 properties were sold statewide – about a 40% jump from 2015’s volume. Sales dipped slightly in 2019 and 2020 but then surged again in 2021 during the pandemic housing boom.
Sales Volume and Homeownership
Missouri REALTORS® data show 96,764 homes sold in 2021, the highest in years, before transactions dropped about 15% in 2022 to 82,588 sales as rising interest rates put the brakes on demand. Even with fewer sales post-2021, homeownership remained common – roughly two-thirds of Missouri households owned their homes in 2023, a rate slightly above the U.S. average.
Price Appreciation
Home prices climbed dramatically in this period. The statewide median sale price rose from roughly $170,000 in 2019 to about $239,500 by 2022 – a 40% increase in just three years. This far outpaced income growth, squeezing budgets of many sub-$250k households.
In fact, 2021 alone saw Missouri’s median price jump over 25% (from ~$172k to $220k) amid frenzied pandemic buying. By early 2025, the median hovered around $252,000, reflecting continued though slower growth.
Despite these gains, Missouri homes remained relatively affordable compared to national figures. Even after recent spikes, Missouri’s median price in 2023 was still well below the U.S. median of ~$430k. This affordability attracted many first-time and budget-conscious buyers to the market during 2018–2023.
Property Types: What Buyers Chose
For Missouri buyers under $250k income, single-family homes have been the dominant choice. The vast majority of owner-occupied purchases in this bracket were detached houses on their own lot, which are plentiful and affordable across Missouri.
Single-Family Dominance
Even in the large metros, single-family residences (often suburban houses with yards) made up most sales. For example, in St. Louis County the typical home sold was a detached house around a $240k median price.
Condos and Townhomes
Condominiums and townhomes played a more minor role overall, though they are a factor in specific locales. In the St. Louis and Kansas City areas, condos/townhouses form a small but notable segment – often as affordable starter homes or urban dwellings.
St. Louis Realtors reported that by 2024 the median condo sale price was around $220,000, a bit lower than the $270,000 median for single-family homes in that region. This suggests condos have been a somewhat cheaper alternative for city-based buyers.
In university towns like Columbia, condos also attracted some younger buyers (e.g. near campus or downtown), but still, most families and individuals in our target income range opted for traditional houses.
Townhomes are not very common in most Missouri markets but have modest presence in newer suburban developments. They offer a middle ground on price and maintenance. However, given Missouri’s low land costs (compared to coastal cities), detached homes remained within reach for many moderate-income buyers.
Buyer Behavior: Demographic Trends
Buyer behavior in Missouri has been split by life stage. Many younger buyers and growing families have been upsizing – seeking larger homes or more space – while older homeowners often downsized to smaller, easier-to-manage homes.
Life Stage Patterns
Nationally, this pattern is well documented: buyers under 57 years old tend to purchase bigger homes than their previous ones, whereas those 57+ often move into smaller homes. Missouri reflects this trend.
For example, a millennial couple in Kansas City moving from an apartment or starter home likely upgraded to a larger suburban house in this period. Meanwhile, a retiree in Springfield might have sold the longtime family house to buy a cozier condo or a small ranch, pocketing equity.
The “Lock-In” Effect
Another notable trend, especially by 2022–2023, was homeowners staying put longer. Turnover slowed as more people held onto their homes, which contributed to low inventory for new buyers. National research shows the typical U.S. homeowner tenure reached about 12 years in 2023, roughly double the average duration two decades ago.
Missouri homeowners also exhibited this “lock-in” effect, especially those who bought or refinanced during the ultra-low interest rates of 2020–2021. By 2022, many were reluctant to sell and give up their 3% mortgage for a new 7% loan, so they delayed moving. This dynamic limited the supply of homes on the market, making it harder for budget-conscious buyers to find options.
Location Preferences: Shifting Patterns
One of the most interesting shifts in 2018–2023 was where Missouri households chose to buy homes. Broadly, the late 2010s already saw a gradual tilt toward suburban and smaller-city living, and the pandemic accelerated this.
Urban vs. Suburban Dynamics
In 2020, homebuying in dense urban areas dipped slightly relative to other areas, as some buyers sought more space or were freed from office commutes. Suburban and rural markets gained popularity: the pandemic “drive until you qualify” effect led many budget-minded buyers to look farther out for affordable, larger homes.
Post-Pandemic Rebalancing
However, the “urban exodus” narrative was not absolute. By 2021, urban homebuying rebounded as cities reopened. In Missouri’s biggest cities, St. Louis and Kansas City, many buyers stayed in the metro area but often chose outer neighborhoods or suburbs.
St. Louis City itself (the urban core) saw modest population decline, while suburbs in St. Louis County and St. Charles County remained highly sought after. Kansas City similarly saw strong demand in suburban parts of Jackson, Clay, and Platte counties on the Missouri side.
Small City Surge
Smaller cities like Springfield and Columbia also benefitted from shifting preferences. Springfield, with its lower cost of living, became a magnet for some first-time buyers and even remote workers coming from pricier regions. Home prices in Springfield remained under $200K (median) through much of this period, making it one of the most affordable metro areas in the state.
Columbia (a college town) saw solid demand too – its home values climbed above $300K on average by 2023, higher than many Missouri markets, as professionals and retirees alike were drawn to its amenities.
Rural Renaissance
Rural areas (from the Missouri Ozarks to farm counties) experienced increased interest in 2020–2021. With remote work, some buyers opted for rural properties – small acreage or country homes – seeking privacy and space. Lending data confirms an uptick in non-metropolitan home purchases during the pandemic years.
In summary, urban vs. suburban vs. rural preferences in Missouri shifted toward lower-density living in the 2018–2023 window, especially at the height of COVID. Suburbs and smaller cities gained relative to the big-city cores.
Regional Market Highlights
St. Louis (East Missouri)
The St. Louis metro (including Missouri-side counties) is the state’s largest market. Homebuying here from 2018–2023 saw rising prices but steady sales relative to inventory. Median sale prices increased from the mid-$100s in the mid-2010s to roughly $210,000–$270,000 by 2023, depending on the area.
Suburban St. Louis County and St. Charles County commanded the higher end of that range (mid-$200s), while the City of St. Louis proper remained cheaper (around $200k median) due to an aging housing stock and some disinvestment.
Budget-conscious buyers flocked to neighborhoods like South County, North County, and parts of St. Charles where $250k could buy a 3-4 bedroom house. Upsizing was common as many millennial families in St. Louis moved from starter homes into larger suburban homes with yards, especially during 2020–2021 when space became a priority.
By 2023, St. Louis had a very tight inventory – multiple offers were common on well-priced homes – but it was generally less frenzied than many coastal cities. Houses took about 40–50 days on market on average in late 2023, slightly slower than the national pace, giving patient buyers some room to negotiate.
Kansas City (West Missouri)
The Kansas City metro straddling Missouri and Kansas also experienced strong price appreciation. On the Missouri side, the median sale price was roughly in the mid-$200,000s by 2023, up significantly from the 2010s when it was under $180k.
Popular areas for moderate-income buyers included suburbs like Lee’s Summit, Blue Springs, and the Northland (Clay/Platte Counties), as well as revitalizing neighborhoods within Kansas City, MO city limits (Waldo, Brookside, etc.).
Kansas City’s market was somewhat more competitive than St. Louis’s, with a slightly higher growth rate (KC’s median price ~$255k, just above the state median). The city also saw considerable investor activity, which impacted first-time buyers.
By region, Jackson County (Kansas City proper) provided more affordable options (many homes $150k–$250k), whereas Clay and Platte counties’ newer homes pushed above $300k, appealing to those with upper-range moderate incomes.
Springfield (Southwest MO)
Springfield’s housing market remained one of the most affordable urban areas in Missouri. Through 2018–2023, median prices in Springfield rose from roughly $130k–$150k up to the $180k–$200k range.
This meant that many budget-conscious households could comfortably buy homes well below the $250k income affordability cap. Buyers in Springfield were often first-time homeowners or retirees from around the region. The area saw people moving in from more expensive states as well, drawn by the combination of low costs and Ozarks quality of life.
Most Springfield buyers purchased single-family houses, as the inventory of condos/townhomes is limited. The city’s growth spilled into surrounding Greene County and Christian County (Nixa/Ozark communities), where new construction homes popped up to meet demand.
Even by 2023, one could find a 3-bed home in Springfield for ~$200k, a price point virtually unheard of in bigger metros. This affordability made Springfield a refuge for moderate-income families during the overheated 2020–2022 national market.
Columbia (Mid-Missouri)
Columbia, home to the University of Missouri, saw robust housing demand and rising prices. Its median home values climbed to roughly $300k by 2023, making it relatively expensive by Missouri standards (on par with the larger metros).
Part of this is due to a strong local economy (education, healthcare, insurance industries) and limited housing supply in a growing city. Many first-time buyers in Columbia are young professionals affiliated with the university or state government (in nearby Jefferson City), and they often purchased starter homes in the $200k–$300k range in subdivisions on the city’s edges.
Moderate-income households under $250k/year could still buy in Columbia, but they might opt for smaller homes or those in neighboring towns (Fulton, Boonville) if Columbia city prices were too high.
Investment and Second-Home Trends
Though our focus is primary residences, second homes and investment purchases did influence Missouri’s market in this period.
Vacation Home Boom
Vacation homes saw a boom in 2020–2021: with remote work and travel restrictions, many families sought getaways within driving distance. Missouri’s lake regions – e.g. Lake of the Ozarks and Branson – benefited from this trend.
According to a Realtor.com analysis, Branson (in the Ozarks) saw a 16.5% jump in second-home purchases and has a median home price around $256,200. This signifies heightened interest in affordable vacation spots in Missouri during the pandemic.
Investor Impact
Investment properties – particularly single-family rentals – also played a growing role. Missouri’s low prices and healthy rents attracted investors, including large out-of-state companies, looking to buy homes to rent out.
By early 2024, investors were accounting for roughly 1 in 5 home purchases in Kansas City, St. Louis, and Springfield – a level higher than pre-2018 norms. During the pandemic housing frenzy, investors snapped up many entry-level houses (often paying cash), which sometimes put them in competition with budget-conscious first-time buyers.
For example, nearly 20% of Kansas City’s home sales went to investors (often out-of-state firms) in recent data. In some neighborhoods, this made it challenging for local buyers with limited budgets to win bidding wars. Similarly, St. Louis saw about 18–19% investor share, and Springfield actually led with just over 20%, illustrating how even smaller markets were targeted for their rental income potential.
Comparison to 2008–2017 Trends
Homebuying trends in 2018–2023 differ markedly from the prior decade (2008–2017), which encompassed the housing crash and a long recovery.
Market Conditions
One major difference is market conditions: the 2008–2012 period was defined by falling home prices, high foreclosures, and very low sales, whereas 2018–2023 saw rising prices, tight supply, and (for a time) a buying frenzy.
During the Great Recession, Missouri’s homeownership rate dropped sharply – it peaked around 73–74% in the mid-2000s and bottomed out near 63.4% by 2016 as many households lost homes or held off buying. From 2018 to 2023, by contrast, homeownership edged back up to roughly 68–69%, recovering to pre-crisis levels.
Price Trajectories
Home price trajectory differed as well. In 2008–2011, Missouri home prices stagnated or declined slightly (for example, the average St. Louis home sold for only ~$130k in 2009 amid the slump). From 2012 to 2017, prices rose gradually – the median sale price reached about $162,500 by end of 2018.
In contrast, 2018–2023 brought rapid appreciation, especially 2020–2022 when annual price gains of 8–15% became common. Essentially, the earlier decade was about digging out of a hole (regaining lost value), whereas the recent period overshot into new price highs.
Demographic Shifts
Buyer demographics and preferences also shifted. The 2008–2017 decade saw the rise of Millennials as first-time buyers, but many delayed purchases into their 30s, and urban living was in vogue in early 2010s.
In 2018–2023, those Millennials finally entered en masse, often looking for suburban houses for their growing families. This contributed to the upsizing trend noted earlier.
Moreover, the pandemic triggered a unique scenario where low- and moderate-income buyers actually jumped into the market at elevated rates – one analysis found homebuying participation by younger and moderate-income groups hit a peak during 2020–2021, partly due to stimulus savings, low rates, and desire for stability.
Location Preferences Then and Now
Location trends also flipped. The late 2000s to mid-2010s saw people moving back into cities (urban resurgence) and a construction slowdown in suburbs. St. Louis built apartments downtown; Kansas City launched hip urban districts – appealing to young professionals.
In 2018–2023, as detailed, the momentum shifted outward: suburban growth accelerated and rural/small-town markets gained appeal, especially during COVID. So whereas 2010 might have seen a budget-conscious buyer snapping up a foreclosed suburban home at a bargain, 2021 saw that buyer competing for a sparse set of listings, perhaps even considering a farther-flung exurban home to get a deal.
Interest Rate Impact
Finally, interest rates underline the contrast. The 2008–2017 era began with relatively high rates (6–7% in 2008) which then fell to ~3–4% by 2012–2016, greatly aiding affordability and refinancing.
2018–2023 saw rates hit record lows (~2.7% in late 2020) and then spike above 7% by 2023. This whiplash in financing cost created urgency and then hesitation. In earlier years, financing gradually got easier; in recent years, it was a rollercoaster – resulting in the 2021 buying frenzy and the 2023 slowdown.
Conclusion
Compared to 2008–2017, the 2018–2023 period in Missouri was characterized by higher prices, lower inventory, and more intense competition, yet also wider participation during the boom.
Despite these challenges, Missourians in the sub-$250k income range continued to achieve homeownership at a high rate, leveraging the state’s affordability advantage. Looking ahead, many of these trends – suburban preference, aging-in-place, and cautious moving – are expected to persist, while any relief in prices or new construction could improve conditions for budget-conscious buyers.
References
- Missouri is Affordable and Growing – Scotsman Guide
- What is the homeownership rate in Missouri? – USAFacts
- 2023 Home Buyers and Sellers Generational Trends Report – National Association of REALTORS®
- Homeowners Today Stay in Their Homes Twice As Long As in 2005, Driven Largely By Older Americans Aging in Place – Redfin
- Pandemic Homebuyers: Who Were They, and Where Did They Buy? – Federal Reserve Bank of SF
- St. Louis County, MO Housing Market: House Prices & Trends – Redfin
- Monthly Housing Report – St. Louis REALTORS®
- Springfield, MO Housing Market – Redfin
- Columbia, MO Housing Market: 2025 Home Prices & Trends – Zillow
- Missouri Housing Market – Bankrate
- Kansas City, MO Housing Market – Bankrate
- St. Louis Housing Market: House Prices & Trends – Redfin
- Realtor.com® Investor Report: Investor Share Peaks as Overall Home Sales Hit Decade-Plus Lows – Realtor.com
- Second Home Sales Are Up, and the New Real Estate Hot Spots Will Surprise You – GOBankingRates
- Comprehensive Housing Market Analysis for St. Louis, Missouri-Illinois – HUD User
- Are Hedge Funds and Private Equity Firms Driving Up the Cost of Housing? – The Sling
