Kansas City 1Q23 Multifamily Market Insights Report: With renter demand steady, deliveries continue
Highlights:
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![Kansas-City-thumb_1Q23](/sites/default/files/styles/ckeditor_embed/public/wp-content/uploads/2023/06/Kansas-City-thumb_1Q23.jpg.webp?itok=EYC7WFRL)
- The Kansas City multifamily market posted a mixed performance in the last three months — as asking rents ticked higher, but the vacancy rate rose. Development activity has remained consistent with approximately 1,300 units coming online during the first quarter.
- The vacancy rate inched higher, increasing 20 basis points in the first quarter to 5.5%. Despite vacancy conditions softening slightly in recent months, the rate improved by 10 basis points year over year.
- Asking rents rose modestly during the first quarter, climbing 0.8% to $1,168 per month. Year over year, rents advanced by 6.3%.
- Transaction volume in the multifamily investment market fell during the first quarter, and sales were limited to a handful of Class B and Class C properties. The median sales price in the first quarter was $100,200 per unit, while cap rates are ranging between 4.75% and 5.5%.
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