Kansas City Q4 Multifamily Market Report: After an Active Year of Development, Supply Growth Slated to Slow in 2021
Highlights:
- The Kansas City multifamily market posted a year of elevated supply and demand in 2020. Vacancy rose, but rents also crept higher for the year.
- Apartment vacancy ended 2020 at 4.9 percent, up 40 basis points from one year earlier. The rate inched up 10 basis points during the fourth quarter.
- Asking rents ended 2020 at $984 per month, up 2.1 percent year over year. Rents contracted slightly during the fourth quarter.
- Projects totaling approximately 1,000 units were delivered in the fourth quarter, and more than 5,600 units came online in 2020. Apartment construction should return closer to recent levels beginning in 2021; currently, more than 4,200 rental units are under construction.
- Sales of multifamily buildings gained momentum in the second half of the year, with the most activity occurring during the fourth quarter. The median price in 2020 was approximately $75,600 per unit, while cap rates compressed to 5.2 percent.
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