Kansas City Multifamily Investment Forecast
Enhanced Demand from Robust Industrial Sector
Employment Fortifies Investor Confidence
Diversified economy sustains historic conditions and demand for new units. Net absorption exceeded a record supply wave last year as unemployment in Kansas City held below the national average and the local rate of household formation improved. This performance slashed vacancy to a more than two-decade low and lifted the average effective rent by double digits. Looking to 2022, strong fundamentals are positioned to persist. The metro's standing as one of the largest industrial markets in the Midwest will support job creation in the trade, transportation and utilities sector, supporting demand in the Class B and C sectors. Meanwhile, the metro's populace of young professionals is expected to expand as traditional office-using companies return to in-person operations and bolster staffs. Projects slated to deliver units near employment centers will benefit. Rental additions this year will be concentrated in Johnson County, highlighted by a collection of properties in Overland Park and Shawnee. Deliveries in the city of Kansas City will be dispersed between eight different neighborhoods, minimizing the impact of supply additions on CBD vacancy.