Kansas City 2Q23 Multifamily Market Insights Report: Vacancy tightens as absorption gains momentum


  • Property performance metrics in the Kansas City multifamily market were mixed during the second quarter, as rents inched lower even as vacancy conditions tightened.
  • Area vacancy tightened a bit during the second quarter, after trending higher in the previous six months. The vacancy rate declined by 20 basis points in the last three months to 5.3%. Year over year, vacancy ticked higher by 10 basis points.
  • Asking rents dipped in recent months, offsetting some of the rent growth posted in the first three months of the year. Rents in Kansas City fell 0.3% in the second quarter to $1,165 per month but are still up 4.7% from one year ago.
  • Sales velocity fell 14% from the first quarter to the second quarter, with Class C properties accounting for the bulk of the transactions. The changing property mix that has been sold has resulted in a sharp price decline, following a spike in 2022. Cap rates rose nearly 50 basis points in the second quarter.

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