Kansas City Multifamily Report – December 2023

The metro outperformed its Sun Belt peers in 2023.

Kansas City recorded solid fundamentals at the start of the year’s fourth quarter, though the metro showed some signs of moderation. The average asking rent was up 0.2 percent on a trailing three-month basis through October, to $1,250, while the U.S. saw its second consecutive month of short-term decreases. The average occupancy rates in stabilized assets fell 20 basis points year-over-year, to 95.3 percent as of September. While Renter-by-Necessity properties registered a 40-basis-point drop to 94.8 percent, the Lifestyle segment saw a 30-basis-point improvement, to 95.8 percent.

The metro added 27,500 new jobs in the 12 months ending in August, up 3.0 percent and 50 basis points above the U.S. rate. Kansas City registered its highest employment growth in the government sector, a 4.6 percent increase, with 7,400 positions added to the workforce. The metro’s unemployment rate was 2.7 percent as of September, 110 basis points lower than the U.S. average, according to preliminary data from the Bureau of Labor Statistics. Nevertheless, employment could get a boost, as Google submitted plans for a data center campus in Kansas City, a project valued at $600 million.

Developers had 8,355 units under construction as of October. Of these, 4,132 units broke ground this year, 27 percent more than the number of apartments that started construction during the same period in 2022. In the 10 months ending in October, multifamily deals totaled $340 million, as the sales slowdown persisted.

Read the full Yardi Matrix report.

You May Also Like