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Market Report

Kansas City Multifamily Market Report

3Q 2023

Top-Tier Assets in Affluent Suburbs Exhibit
Resilience to Mounting Supply Headwinds

Class A properties aided by high homeownership costs. Over the last year, Kansas City vacancy has risen from record lows. Despite an 80-basis-point uptick in vacancy from the end of 2019, total occupied stock will reach a high point in 2023. New inventory has placed upward pressure on vacancy, but renter demand is situated to continue growing. Among major Midwest markets, Kansas City had the third-largest affordability gap, or difference between the average Class A effective rent and the mean monthly mortgage on a median-priced metro home. As the cost of homeownership stays high, current renters may opt to stay so for longer, supporting new supply. Class A vacancy was at 5.4 percent in June, roughly in-line with the segment’s long-term average and equal to the Class C metric.
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