Metro Reports Multifamily Market Real Estate Trends

Kansas City Multifamily Market Report – March 2024

Kansas City Multifamily Market Report March 2024
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Stable Rent Growth Despite Pipeline Boom

Taking all economic factors into account, the metro’s multifamily fared well in 2023, according to the latest Yardi Matrix Kansas City multifamily market report. The metro recorded moderate rent growth but managed to outperform most of the country last year. On a trailing three-month basis through January, rents were flat, at $1,253, while the U.S. rate was down 0.2%. The metro’s average occupancy in stabilized assets, however, fell 80 basis points year-over-year, to 94.5%, as of January. Both working-class Renter-by Necessity and Lifestyle rates declined.

Kansas City employment expanded 2.4%, or 14,400 net jobs, in the 12 months ending in November, 20 basis points above the U.S. rate, according to the latest national report. The government sector led growth, with 10,400 positions added, for a 6.3% increase. The area’s unemployment rate stood at 2.5% as of December, 120 basis points lower than the U.S. average, according to preliminary data from the Bureau of Labor Statistics. A longer-term boost could come from the development of a $2 billion new ballpark, announced by the Kansas City Royals.

Developers had 8,236 units underway as of January across metro Kansas City, with an additional 53,000 units in the planning and permitting stages. The number of construction starts doubled in 2023, with 5,119 units breaking ground, up from 2,505 in 2022. The sales slowdown continued, with multifamily deals totaling just $414 million in 2023.

Read the full Yardi Matrix Kansas City Multifamily Market Report March 2024

About the author

Madalina Pojoga

Madalina Pojoga has a background in film studies and performative arts. She has been an associate editor with Commercial Property Executive and Multi-Housing News since 2022. Her current work centers on self storage, the industrial and medical office building sectors, as well as data-driven reports on the multifamily market.

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