Yardi Matrix: New Life for Kansas City
Kansas City might not be top of mind as a spot for urban living, but revitalization projects are luring residents and developers downtown and breathing life into a slow-moving Midwestern market.
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Kansas City might not be the first metro that comes to mind when the topic of urban living comes up, but revitalization projects are luring residents and developers downtown and breathing life into a slow-moving Midwestern market. Millennials and empty nesters are choosing to rent in the metro’s center. The city is paving the way, with a downtown streetcar transit system and approval of redevelopment projects to help create a live-work-play lifestyle and boost demand for apartments. The trend is set to continue, since more than 6,300 units are currently under construction and another 16,000 are on the drawing board.
Though the metro is trailing the nation in job growth, it is a regional center for business services, trade and health care. The local economy is expected to improve further, as large employers such as Cerner Corp. and United Parcel Service have announced significant expansion plans.
Transaction volume rose last year, with investors attracted by steady fundamentals and the potential for higher yields. Last year, volume increased by more than 50 percent to a record high of $800 million. We expect demand to remain healthy, which, along with steady job creation and increasing supply, will generate a moderate rent growth of 3.1 percent.
