Metro Reports Multifamily Market Real Estate Trends

Kansas City Real Estate Market Trends – Fall 2020

kansas city real estate market fall 2020
Image by Jacob Boomsma/iStockphoto.com

Underlying Fundamentals Sustain Multifamily Sector

Several months into the economic deceleration, the national pattern of lower-cost metros outperforming primary markets is becoming apparent in Kansas City. While the crisis has undeniably impacted the metro’s economy, Kansas City’s multifamily fundamentals have endured, with overall rents up 0.4% to $1,011 on a trailing three-month basis as of October, below the $1,464 national average.

In line with national trends, leisure and hospitality was the most impacted sector in the metro, down 21,800 positions in the 12 months ending in September. Job gains occurred in construction
and government, with the sectors adding a combined 3,800 positions. According to a forecast from the Center for Economic Development and Business Research, employment is projected to gradually rebound for the remainder of the year and into 2021. Contingent on national patterns and the pandemic’s evolution, Kansas City is forecast to add 14,500 jobs through 2021, with leisure and hospitality expected to lead job gains.

As of October, 7,204 units were underway, with the bulk of those targeting high-income renters. Developers added 2,872 units to inventory year-to-date, accounting for 1.8% of existing stock. Some $471 million in assets traded in 2020 through October. While deal velocity slowed, investors continued to deploy capital, with a strong focus on the Renter-by-Necessity segment.

Read the full Matrix Multifamily Kansas City Report-Fall 2020

 

About the author

Timea-Erika Papp

Timea Papp is a Senior Associate Editor with Commercial Property Executive and Multi-Housing News. She joined CPE and MHN in 2017 and has been working in the real estate industry since 2011. Timea's key focus areas include finance pieces for the CPE Capital Markets and MHN Finance & Investment newsletters and metro-focused multifamily market reports for Yardi Matrix.

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