Kansas City Q4 Multifamily Market Insights: Cap Rates Compress to Close 2021
Highlights:
- Renter demand in Kansas City is slowly returning to more typical levels as rents trended higher and absorption levels jumped in 2021. The multifamily market should gain momentum in the year ahead as the economy reaches a full recovery.
- Vacancy ticked up 10 basis points during the fourth quarter, after inching lower in the third quarter. The rate ended 2021 at 5.6 percent, up 70 basis points from 2020.
- Asking rents continued to rise in the final quarter, though the pace of growth slowed from previous periods. Asking rents increased 0.8 percent in the fourth quarter, reaching $1,058 per month.
- Transaction volume held fairly steady in the second half of the year, increasing slightly in the last few months of 2021. The median sales price pushed higher throughout the year, rising 41 percent in 2021to $106,900 per unit. Cap rates continue to compress, averaging 3.8 percent in the fourth quarter.
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