Research 9/ 9/ 2021

Kansas City Q2 Multifamily Market Report: Rents and Prices Rise as Local Economy Gains Momentum

Highlights:

Kansas City Q2 2021 Market Snapshot
  • The Kansas City multifamily market recorded mixed performance during the second quarter. Rents rose and investment activity gained momentum, but the vacancy rate continued to creep higher in response to an active pace of new apartment construction. As new units are absorbed and the economy strengthens, the outlook for the local multifamily market will continue to brighten.
  • Vacancy trended higher in Kansas City, rising 50 basis points to 5.7 percent in the second quarter. Year over year, the rate is up 130 basis points, following an active 18 months of new development. The vacancy rate is forecast to be mostly stable through the remainder of this year.
  • Asking rents rose 1.8 percent in the second quarter, reaching $1,010 per month. In the past 12 months, rents have advanced 3.6 percent.
  • Far more multifamily properties sold during the second quarter than changed hands at the beginning of the year. As activity has picked up, prices have pushed higher; the median price in transactions in 2021 is up to $84,800 per unit, while cap rates have compressed to 4.4 percent.

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