The Kansas City metro is on track for another big year in apartment construction, even while the nation’s apartment boom slows.
Why it matters: KC’s pipeline is bucking the trend as higher building costs, higher interest rates and a surplus of supply in other markets make developers cautious to start new projects.
- The national numbers are still above normal for this decade, according to a report by listing site RentCafe.
The big picture: The metro’s strength in numbers comes from a high demand for luxury apartments, growing rental options in popular suburbs, and public investments in affordable housing.
By the numbers: More than 4,000 units opened for leasing in 2024, according to a Q4 report by commercial real estate company Northmarq.
- At least 4,000 additional apartments are projected to open in 2025, the report forecasts.
- As of July, 5,300 units had been built since the previous July, and 5,900 units are currently under construction, according to a report by multifamily real estate investment company GREA.
Zoom in: “Johnson County leads the metro with the most units under construction,” GREA’s report states, with other hot zones including downtown and the Northland.
- Cass County has increased its inventory by 55% since 2022.
- Key factors for developers include population growth, available land and strong employment bases.
Between the lines: Rent is up 3.8% year-over-year, the GREA report states, driven by high demand for luxury and workforce housing…