Kansas City Multifamily Market
Barriers to Homeownership and Regionally Low Rent
Prolong Vacancy Compression
Rising home prices tip the scales in favor of renting. Defying the national trend, vacancy in Kansas City declined through the first half of 2022. After achieving a record low of 3.3 percent at the end of 2021, the vacancy rate dropped another 20 basis points by June, and the market is expected to retain this compacted rate through the duration of 2022. Renter demand is being bolstered by a widening affordability gap relative to homeownership. The disparity between the mean effective apartment rent and the typical mortgage payment on a median priced home is larger in Kansas City than any other major Midwest metro. The regionally high monthly payment on a home, paired with a tight single-family housing market, continues to prompt residents to consider the advantages of multifamily living.