Kansas City Q1 Multifamily Market Insights: Prices continue to push higher to start 2022
Highlights:
- The Kansas City multifamily market posted improved performance at the start of the year. Asking rents trended higher while the vacancy rate held steady. Area employers continued to expand payrolls in recent months, strengthening the local economy.
- The average vacancy rate remained at 5.6 percent in the first quarter. Year over year, the rate is up 40 basis points, but vacancy has been essentially flat since the second half of 2021.
- The pace of rent growth accelerated to this point in 2022. Asking rents rose 3.9 percent in the first quarter to $1,099 per month. Year over year, average rents jumped 10.7 percent.
- Transaction volume held steady in the first quarter, matching the number of sales from the fourth quarter of last year. The median sales price surged in recent months, reaching $250,000 per unit. Cap rates continue to compress, averaging 3.6 percent in the first quarter.
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