Kansas City rental rates are skyrocketing, according to one of the nation’s leading apartment seekers.
The Apartment Guide’s April 2021 Rent Report lists Kansas City with the largest rent increase among the nation’s 100 largest cities for a bedroom. The report says rates have jumped 33.5% since March of last year.
Average rental prices are based on data for March – a full COVID-19 pandemic year – from the Apartment Guide and Rent.com’s multi-family rental property inventory. Apartment Guide is a major resource used by apartment seekers.
Two-room rates in Kansas City also rose significantly, rising 21.4%, according to the report. That places Kansas City in 9th place for the biggest increases over the past year. Wichita followed closely, seeing rates jump 21.1%.
According to the study that looked at the 100 largest cities in the United States, here are the places where room rental prices have increased the most in the past year. Averages were based on available units.
Kansas City, MO (+ 33.5%)
Gilbert, AZ (+ 26.0%)
Las Vegas, NV (+ 25.3%)
Riverside, California (+ 24.9%)
Buffalo, NY (+ 23.3%)
Columbus, OH (+ 22.1%)
Durham, North Carolina (+ 20.0%)
Detroit, MI (+ 18.6%)
New Orleans, LA (+ 18.3%)
Virginia Beach, VA (+ 15.3%)
Here are the cities that have seen the biggest increases in two-bedroom rent prices over the past year.
Riverside, California (+ 56.0%)
North Las Vegas, NV (+ 39.9%)
Buffalo, NY (+ 38.6%)
Detroit, MI (+ 32.5%)
Las Vegas, NV (+ 31.1%)
Gilbert, AZ (+ 30.1%)
Memphis, TN (+ 24.2%)
Hialeah, Florida (+ 23.3%)
Kansas City, MO (+ 21.4%)
Wichita, KS (+ 21.1%)
The average Kansas City rent for one-bedroom apartments is $ 1,435 in March, according to Apartment Guide listings data. The average rate for two rooms is $ 1,774.
Kansas City Housing Market
Kansas City’s popularity may be partly to blame, said Brian Carberry, senior editor of Apartment Guide.
While he cannot speak directly to the Kansas City market, Carberry said that in general cities like Kansas City, Sacramento, St. Louis and Boise, Idaho, are increasingly popular and increasingly in demand by tenants.
“As such, we are seeing the prices go up there due to a very limited supply,” he said. “Landlords have the option to price a little higher because they know the rental market is strong.”
Some of the cities that have seen an increase in rental rates have also seen a large influx of people moving to the area, increasing demand and competition for apartments, he said.
Another reason cities are seeing a big increase is the declining inventory of affordable housing on the market, he said.
“When these cheaper apartments are taken off the market, whatever is available will drive that average up,” Carberry said.
Kansas City rental prices were based on the average of 450 units that were on the market on the last day of March, which was higher than units available the year before. The study only looks at apartments with an address in Kansas City, Missouri.
“This leads me to believe that another reason for the increase in prices could be that new properties have gone online or opened in the past year with luxury or high-end amenities that are higher than the city average, ”Carberry said. “We have seen similar trends in Saint-Louis.”
Another factor affecting rental rates could be the housing market itself.
“The housing market is just crazy,” Carberry said. “If people want to get into a house or have savings, they find that it is not possible to do so just because of the competition.”
This could lead some people to renting.
“I will say that one of the trends that we are seeing nationwide is that there is a demand for larger units and this comes a year after the start of the pandemic,” he said. he declares. “Everyone just wants a little more space.”
Rather than living in a bedroom, people who can afford it look for a two or three bedroom apartment. Even if that means moving in with a roommate, Carberry said. This could affect the two-bedroom rental rates in Kansas City.
“You know, it’s no fun working in a kitchen for a year,” he says. “I think a lot of people have had enough and are looking for more space where they can.”
The inventory included in the Apartment Guide database tends to focus primarily on large apartment complexes. This does not include a house that is rented out, Carberry said.
While Kansas City ranked 38th in terms of population, it had the 43rd highest rent for one-bedroom apartments and the 42nd highest rent for two-bedroom apartments. Meanwhile, Wichita, which ranked 51st in terms of population, had the 85th highest rent for one-bedroom apartments and the 92nd highest for two-bedroom apartments.
The rankings were affected by nine cities without rates for one-bedroom apartments and eight cities without rates for two-bedroom apartments.
“The pandemic has kind of put things on a loop when it comes to what the rental market is doing,” Carberry said. “Some of the cities where we’re seeing big declines are going to start to rebound and some of the cities where we’re seeing big increases are expected to start stabilizing as early as this summer.”
It could take longer, depending on how the economy develops.
“These trends are therefore temporary,” he said.