Kansas City Q4 Market Insights: Strong fundamentals supported investment market in 2022

Highlights:

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• The Kansas City multifamily market recorded a strong year in 2022. Apartment development activity accelerated in 2022, as both completions and permitting activity surpassed levels recorded during 2021.
• Vacancy tightened by 30 basis points in 2022, ending the year at 5.3 percent. While the rate fell for the full year, vacancy ticked up 20 basis points during the fourth quarter.
• Area rents continued to rise at a healthy pace during the fourth quarter; average rents increased by 1.8 percent in the last three months, reaching $1,159 per month. Asking rents advanced by 9.5 percent in 2022.
• The multifamily investment market remained active throughout 2022. Sales activity gained momentum, and prices pushed higher. The median sales price was $183,900 per unit in 2022, considerably higher than in the preceding year. Cap rates trended higher in the fourth quarter.

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