Market Report
Kansas City Multifamily Market Report
2025 Investment Forecast
Demand Proving Resilient Amid Heavier Arrivals;
City Initiatives Aid Investment
Regionally favorable demographics backstop apartment performance. Kansas City will see historic delivery volume this year, inching vacancy up and slowing rent growth compared with 2024. That said, the metro also expects the third-largest net in-migration and employment market expansion among major Midwest metros, which will help alleviate supply pressures. As a result, vacancy should stay under the 6 percent threshold and rent growth above the U.S. mean. With arrivals focused near the urban core, operations in suburban submarkets with scant 2025 pipelines are poised to hold or improve, including Olathe-Gardner and South Kansas City-Grandview. Each saw Class A vacancy decline during 2024, but the former boasted the largest increase in Class A average rent, even with the heaviest deliveries among submarkets. Corporate expansions here like SelectRx’s new fulfillment center opening in the first half of 2025, along with the construction of a new entertainment hub at the Olathe Gateway, may continue to drive renter demand.
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