Kansas City Multifamily Market
Locales a Short Commute to Reopening
Downtown Offices at the Forefront
CBD revival and growing suburbs foster metrowide gains. Kansas City ended last year with all 11 major submarkets reporting positive net absorption and the 10 suburban areas seeing vacancies below 5.0 percent, coinciding with the second-fastest year of rent gains since at least 2000. Rents in the CBD grew by 8.8 percent last year, after falling 1.8 percent amid the pandemic shock in 2020, evidence that the recovery is underway. The area registered a five-year vacancy low in the first quarter, falling 370 basis points year-over-year to 4.5 percent, marking a rapid but still-progressing resurgence. At the same time, suburban rents grew by 11.4 percent in 2021, as renter preferences for larger units and more spacious communities helped drop vacancy in the suburbs to 3.2 percent entering this year.