Kansas City’s Development Slowdown Strengthens Existing Assets

New CoStar data shows apartment construction in Kansas City has fallen back to pre-2020 levels — down nearly 46% from the market’s peak. While that may sound like a cooling market, it’s actually welcome news for current owners and investors.

With borrowing costs high and new projects slowing, the city’s development pipeline has dropped to its lowest level since 2018. That means fewer new units competing for renters — especially important as vacancy rates have inched higher over the past few years.

For existing properties, this environment can create real advantages:

✅ Reduced future supply pressure — fewer lease-ups competing for tenants

✅ Stabilizing vacancy rates — demand absorption catching up with new inventory

✅ Healthier rent growth outlook heading into 2026

Kansas City’s fundamentals remain steady — strong job growth, population inflow, and downtown expansion along the Main Street streetcar corridor continue to drive long-term housing demand.

For well-operated assets, this is a market that rewards efficiency and staying power while new development takes a breather.

📊 Source: CoStar, August 2025

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