Kansas City Q3 Multifamily Market Report: With Demand Consistent, New Development Gains Momentum
Highlights:
- Multifamily development in Kansas City has been active in 2020, offsetting healthy levels of renter demand. Vacancy rose, but rent growth accelerated and investment activity gained momentum after a lull in the second quarter.
- Vacancy rose during the third quarter, reaching 4.8 percent. The rate is up 20 basis points year over year.
- Fueled by healthy absorption levels, asking rents rose more than 1 percent from the second quarter to the third quarter, reaching $989 per month. During the past 12 months, local asking rents have increased 2.7 percent.
- Sales of apartment properties regained momentum during the third quarter after a slow start to the year. In sales that have closed thus far in 2020, the median price has reached approximately $74,400 per unit, while cap rates have compressed to 5.3 percent.