In Q2 2023, Kansas City apartment operators and investors had reason to celebrate as rental demand rebounded in conjunction with an influx of newly completed properties. This revival in rental demand boosted the occupancy rate by 10 basis points from the previous quarter, reaching 94.9%. Despite the occupancy rate still lagging behind the rate of the same quarter last year, the quarter-to-quarter increase halted the trend of four consecutive quarters of declining occupancy rates. Class B properties remained highly occupied with an average rate of 95.3%. Concurrently, Class A properties, which had been suffering from a severe drop in occupancy due to an influx of new supply, saw a 20-basis point quarterly improvement, bringing the occupancy rate up to 94.6%. Class C properties also improved by 10 basis points, rounding off the market with an occupancy rate of 94.7%.
North Overland Park boasted the highest occupancy rate, while the emerging South Kansas City / Grandview submarket had the lowest rate at 93.1%. Overall, the rental market in Kansas City stands out as one of the top performers among the county’s top 50 apartment markets, demonstrating its stability even in uncertain times.