Kansas City Hasn’t Seen Annual Rent Cuts in 16 Years

Kansas City’s apartment market has enjoyed steady rent growth for more than a decade, supported by the market’s ability to absorb supply.

Effective asking rents increased by 1.7% in Kansas City in the year-ending May 2026, extending a streak of positive gains the market has maintained for more than a decade. Although rent growth has cooled considerably from the drastic increases recorded in 2021 and 2022, Kansas City has avoided the outright rent cuts seen elsewhere in the U.S. Instead, the market has sustained modest, steady increases, supported by stable occupancy and dependable demand. The last time annual rent cuts took place in Kansas City was in July 2010, according to data from RealPage Market Analytics.

Inspiring recent rent growth, apartment occupancy in Kansas City has steadily run above the national norm since June 2024, pacing an average of 70 basis points (bps) ahead during that period. As of May, Kansas City saw occupancy hit 96.2%, well above the U.S. average of 95.5%.

Over the past year, occupancy in Kansas City has largely hovered in the mid-95% to low-96% range, demonstrating resilience even as new units come online. This consistency highlights Kansas City’s relative insulation from the sharper occupancy declines seen in more supply-heavy markets.

Apartment demand essentially matched new supply in Kansas City in the past year. The market absorbed 2,955 units in the year-ending 1st quarter, while 3,331 units delivered concurrently. Both supply and demand have moderated following the post-pandemic surge seen nationwide. Annual deliveries in Kansas City peaked above 5,000 units in 1st quarter 2021, while annual demand surged above 8,000 units in 1st quarter 2022. More recently, the market has seen a more stable equilibrium. Still, the near one-for-one relationship between completions and absorption in the past year underscores the market’s ability to digest new inventory without significant disruption to occupancy.

Looking ahead, Kansas City appears well positioned to navigate its next phase of supply growth relatively well. While demand is expected to trail deliveries slightly in the near term, the market’s demonstrated ability to maintain occupancy in the mid-95% range should help limit downside risk. With rent growth expected to continue as well, Kansas City stands out as a market defined by stability.