Mirroring trends observed in most apartment markets nationwide, the growth rate of rent prices in Wichita is showing signs of deceleration. However, the city still achieved a healthy 3.1% annual increase in average rent, elevating the monthly rate for new leases to $862. This performance not only surpasses Wichita’s ten-year average growth rate of 2.9%, but also significantly outstrips the national average of 0.4% for Q3 2023. Although Wichita did not experience the extreme rent hikes seen in many markets post-pandemic, it has adeptly avoided the steep rent reductions that are now plaguing those areas. Looking ahead, the stable nature of Wichita’s economy is expected to contribute to a reversion to the mean in apartment fundamentals, thereby minimizing the likelihood of rent cuts in the near term.
On the submarket level, West Wichita led the metro area, boasting the highest rental growth rate at 5.1%, which elevated the monthly rental rate to $877. In contrast, the Central Wichita/Riverside submarket, which has recently seen an influx of new units, lagged behind, registering a more moderate annual gain of 1.3%. When examining the local apartment market by asset class, Class C properties outperformed with an annual rent growth rate of 4.1%, lifting the average monthly rate for new leases to $685. Class B properties maintained steady yearly growth at 3.5%, closely mirroring the rate of 3.6% observed in the previous quarter. Meanwhile, Class A properties recorded a modest annual increase of 2.1%, bringing the average rental rate for highly-amenitized assets to $1,144 for Q3 2023.