Kansas City Multifamily Market Report
Kansas City Metro Area, Third Quarter 2017
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Record-Setting Hiring Supporting Rent Growth Despite Rising Supply

Professional and business services headcounts surge. Kansas City metro employment continues to grow at a pace well above the national rate due to substantial gains in the professional and business services sector. The 11,400 jobs added in this segment in the past 12 months represent the largest gain in more than 25 years. Rental demand by employees filing these jobs helped keep effective rent gains at healthy levels in the last year; however, the construction pipeline caused concession offerings to expand. More than 2,170 units, all market rate, are underway in the Central Kansas City submarket, with 710 rentals expected to be completed before the end of the year. The majority of the late-year completions are in and around the Power & Light District. Although this submarket’s vacancy is up 160 basis points in the past four quarters, the midyear rate of 6.3 percent remains slightly below the long-term average. Additionally, while concessions grew in Central Kansas City, the submarket’s effective rents grew at twice the marketwide pace, indicating resilient demand for new apart-ments despite the short-term surge in local supply.