Kansas City’s new rental housing stock has led to a slowdown in rent growth, but the addition of high-earning jobs should lead to quick absorption of the high-end units slated to come online. The metro’s downtown is seeing the most development activity, followed by surging construction activity in Johnson County. The two submarkets account for roughly half of the 8,200 total units now underway.
Employment growth was strongest in professional and business services, as companies expand or relocate to the metro. Shamrock Trading Corp. is looking to consolidate its presence in the Midwest by building three new office towers in Overland Park. More than 1,000 employees are expected to join the company in the next five years. Kansas City’s industrial sector is also thriving. CVS Health opened a new retail distribution center that will house 360 employees once fully operational, while Kubota Tractor Corp. will build two logistics facilities totaling 2 million square feet in Phase II of Logistics Park Kansas City in Edgerton.
Significant job gains—27,400 in the 12 months ending in June—draw a consistent number of young professionals looking for well-positioned rental units. With roughly 2,400 units anticipated for completion, rent growth in the metro is expected to come in at about 2.2 percent for the whole year.