Conversion rates for property managers in St. Louis, MO

Goals

To inform benchmarking of conversion rates for a company, by obtaining publicly available stats surrounding the conversion funnel rates for property managers in St. Louis, MO. These conversion rates should show the number of people to whom property managers show homes, the percentage of those people that are qualified renters, and the percentage of the total that become tenants. This data should be delivered in a Google spreadsheet.

Early Findings

  • 300,000 people live in St. Louis, which is the second largest city in Missouri.
  • However, the housing market includes up to 3 million people, making it the 20th largest metro area in the USA.
  • The area is projected to see stable growth over the next few years, as workers move from more expensive coastal cities and new corporate campuses open.
  • Single-family detached homes are the most common type of housing in the city. Single family rental properties have grown up to 30% within the last three years.
  • The current median home value in St. Louis is $124,919.
  • The city is a seller's market. While 15.3% of the listings in St. Louis had a price cut in November 2019- meaning that sellers were willing to negotiate and sell them for a lower price- most sellers were able to sell a property for 98.16% of the asking price. (90% is what a buyer usually prefers.)
  • It is also a good place for investment properties, as St. Louis. In downtown, about 60% of residents rent. Even when you include the suburbs, total renting would be about 20%.
  • Home prices are forecasted to increase by 1.7% in 2020. House prices have increased every year since 2014.
  • Most homes only received one offer and were sold within 33 days. A "hot" property can command maybe 1% over the list price and will be listed as pending sale within 8 days.
  • The best time to close a house sale in Missouri is in May, with listing in March or April at the earliest. This can bump price up by about 8.22% above the yearly average. However, houses that go on the market in June sell fastest and are only on the market for 28 days.

Proposed next steps:

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While early findings has shown that the conversion from offer to sale is basically 1:1 in St. Louis, our background research shows that it’s highly unlikely there will be publicly available information on conversion rates focusing on thow many customers homes are shown to, and how many of those customers are qualified renters. However, to help with an understanding of how your company can increase its conversion rates earlier on, we recommend analyzing the consumer journey for possible buyers of property in St. Louis. Specifically we will divide this journey into 1) Awareness 2) Engagement 3) Consideration 4) Purchase and 5) Post-Purchase. We recommend doing this for two customer segments: those purchasing properties to rent them out, and second, those that are purchasing homes to live in themselves.
We also recommend doing a case study on Homelight, as they have quantitative records that show their agents have faster turnover and do more sales than other agents. Specifically, we would look at their website to identify their claims, reasons to believe, any tagline/s, tone of voice, and brand personality. We would support this with screenshots of their website where necessary. We would also pay special attention to their top St. Louis agent. We would highlight the agent's bio, education, areas of focus, and what people most like about him/her. This latter agent profile would be based on his/her agent's page.