Kansas City 1Q23 Multifamily Market Insights Report: With renter demand steady, deliveries continue

Highlights:

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• The Kansas City multifamily market posted a mixed performance in the last three months — as asking rents ticked higher, but the vacancy rate rose. Development activity has remained consistent with approximately 1,300 units coming online during the first quarter.
• The vacancy rate inched higher, increasing 20 basis points in the first quarter to 5.5%. Despite vacancy conditions softening slightly in recent months, the rate improved by 10 basis points year over year.
• Asking rents rose modestly during the first quarter, climbing 0.8% to $1,168 per month. Year over year, rents advanced by 6.3%.
• Transaction volume in the multifamily investment market fell during the first quarter, and sales were limited to a handful of Class B and Class C properties. The median sales price in the first quarter was $100,200 per unit, while cap rates are ranging between 4.75% and 5.5%.

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