average rent
average occupancy rate
annual sales volume
YoY rent change
yoy occupancy change
annual individual transactions
QUARTERLY DEMAND
YTD: 141
QUARTERLY COMPLETIONS
YTD: 473
Average Monthly Mortgage Payment
Average Monthly Rent
* The Average mortgage payment is based off a Average home sales price of $241,800 as reported by the Central Kansas Association of Realtors as of September 2023.
Occupancy rates in Wichita appear to be stabilizing around the 94% mark, a figure consistent with the 10-year historical average. This follows a period of exceptionally high occupancy in 2021 and 2022. Within the metro’s submarkets, occupancy rates remained relatively uniform. The East Wichita submarket led with a rate of 94.8%, while the Central Wichita/Riverside submarket posted the lowest—yet still robust—rate of 93.2%. In terms of asset classes, Class A properties boasted the highest occupancy rate at 95.5%. Classes B and C were closely matched, with average occupancy rates of 94.2% and 92.3%, respectively. While minor fluctuations are expected over the next four quarters due to new supply entering the market, the overall impact is projected to be minimal. Occupancy rates are forecasted to remain stable, hovering around the lower bounds of the 94% range.
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.
| Submarket | Average Occupancy | Annual Occupancy Change | Average Monthly Rent | Annual Rent Change |
|---|---|---|---|---|
| Central Wichita/Riverside | 93.2% | -1.5% | $850 | 1.3% |
| East Wichita | 94.8% | -1.2% | $777 | 2.5% |
| North Wichita/University | 94.2% | -1.8% | $935 | 2.3% |
| West Wichita | 93.8% | -0.7% | $877 | 5.4% |
| Wichita, KS | 94.0% | -1.3% | $862 | 3.1% |
| Property Name | Address | City | Zip | Submarket | Construction Start Date | Leasing Start Date | Construction Finish Date | Developer | Total Units |
|---|---|---|---|---|---|---|---|---|---|
| HiTone Lofts | 701 E 2nd St N | Wichita | 67202 | Central Wichita/Riverside | 04/01/2022 | 11/01/2023 | 03/01/2024 | Ferguson Property Group | 72 |
| Uptown Landing II | 3221 E 1st St N | Wichita | 67214 | Central Wichita/Riverside | 04/01/2021 | 01/01/2024 | 04/01/2024 | Brand Investments | 125 |
| North Andover Road & East 21st Street | N Andover Rd & E 21st St | Andover | 67002 | East Wichita | 10/01/2022 | 06/01/2024 | 01/01/2025 | Private Developer | 250 |
| East 17th Street North & North Gentry Drive | E 17th St N & N Gentry Dr | Wichita | 67208 | North Wichita/University | 10/01/2022 | 11/01/2023 | 09/01/2024 | Private Developer | 277 |
| Fairmount Flats | 1728 Fairmount St | Wichita | 67208 | North Wichita/University | 12/01/2022 | 12/01/2023 | 02/01/2024 | Bonavia Properties | 50 |
| Plazzio Place | E 13th St N & N Greenwich Rd | Wichita | 67206 | North Wichita/University | 04/01/2023 | 01/01/2024 | 07/01/2024 | Laham Development | 40 |
| Stoney Pointe II | 11587 E Agate Ln | Wichita | 67206 | North Wichita/University | 01/01/2022 | 11/01/2023 | 11/01/2024 | Edward Rose and Sons | 216 |
| K-96 & North Ridge Road | K-96 & N Ridge Rd | Wichita | 67205 | West Wichita | 05/01/2022 | 01/01/2024 | 06/01/2024 | Private Developer | 166 |
| Liberty Gardens | 13550 W 13th St N | Wichita | 67235 | West Wichita | 05/01/2023 | 03/01/2024 | 11/01/2024 | Private Developer | 108 |
Deal flow for individual conventional multifamily transactions totaled $85 million for the year ending in the third quarter of 2023. This aligns closely with the five-year annual average of $80 million for individual property transactions. Notably, the third quarter of 2023 alone saw two sales, contributing $11.3 million to the annual total.
* Trailing 4Q average PPU
* Preliminary Data from RCA – Individual transaction $2.5M +
In August 2023, Wichita continued to demonstrate economic resilience with an unemployment rate of 3.6%, slightly better than the U.S. average of 3.8%. According to the latest data, the metro area experienced varied job growth across different sectors. The Leisure and Hospitality sector led in terms of growth, adding 2,500 jobs—an impressive 7.5% increase from the previous year. Manufacturing also showed positive momentum, contributing an additional 1,000 jobs, marking a 2.0% growth rate. Government roles increased by 600, with a 1.5% growth rate, while Education and Health Services grew by 500 jobs or 1.1%. The Mining, Logging, and Construction sector expanded modestly, adding 200 jobs at a growth rate of 1.1%.
August Annual Jobs Created
August 23 Employment growth
August 2023 Unemployment rate
3.8% us August rate
| Sector | Change from August 2022 to August 2023 | Percent Change |
|---|---|---|
| Leisure and hospitality | 2,500 | 7.5% |
| Manufacturing | 1,000 | 2.0% |
| Government | 600 | 1.5% |
| Education and health services | 500 | 1.1% |
| Mining, logging & Construction | 200 | 1.1% |
| Other services | 0 | 0.0% |
| Information | 0 | 0.0% |
| Financial activities | (100) | -0.8% |
| Trade, transportation, and utilities | (300) | -0.6% |
| Professional and business services | (1,400) | -3.9% |
$256,000
$1,981
39.3%
20.0%
$60,539
The northern region of Wichita’s apartment market is set on a favorable course for the next four quarters, buoyed by robust demand and key economic developments. A significant contributor to this optimistic outlook is the forthcoming establishment of Integra Technologies’ headquarters in Bel Aire. This venture alone is expected to create 2,500 local jobs, thus intensifying housing demand in the area.
While the market is set to welcome new supply in upcoming quarters, only minor fluctuations in apartment fundamentals are anticipated. Such changes are not expected to significantly impact the market’s inherent stability. This resilience, even in the face of minor variations, is a bullish indicator for apartment owners and operators in the Wichita region. It suggests a healthy market environment that is well-positioned to navigate future shifts and continue on a growth trajectory.
