News Flash

Economic Development

Posted on: July 14, 2017

Multifamily Housing Debate

As Jackson County residents do you believe too many apartments are coming online, at the right pace for coming demand or is more development needed? The debate on the multifamily housing supply has perspectives from all sides.


If you’d like to share your thoughts with the Economic Development team please do so at econdev@jacksongov.org

Read below for takes on multiple opinions on the issue:


• “Demand for multifamily housing is expected to maintain a brisk pace through 2030” - Hoyt Advisory Services, GlobeSt.com http://www.globest.com/sites/erikamorphy/2017/06/13/rewriting-the-narrative-on-apartment-demand-and-oversupply/) via MetroWireMedia

• “There is some downward pressure on high-end apartment rentals due to soaring supplies.” – https://blogs.wsj.com/dailyshot/2017/05/14/wsjs-daily-shot-lenders-cut-back-on-multifamily-housing-amid-weak-apartment-sales-and-rising-supplies/

• “With 10,000 people a day turning 65 through 2030, the boomer generation will continue to be a major influence on the changing dynamics of apartment development.” – http://www.colliers.com/-/media/files/marketresearch/unitedstates/markets/kansas%20city/1q17_multifamily.pdf

• “In a sign that consumers may be shifting preferences from renting to homeownership, a new TransUnion (NYSE:TRU) analysis found that 55% of those who shopped for a mortgage in Q1 2017 were non-homeowners - most of whom are renters.” - http://www.nasdaq.com/press-release/rent-or-buy-2017-begins-with-spike-in-number-of-renters-shopping-for-homes-20170622-00178

• “The decline of the American single-family home looks more like a problem of supply than demand” – https://qz.com/992519/the-decline-of-the-american-single-family-home/

• “The multifamily market is expected to remain healthy, although investors may forecast slight moderations in rent growth and occupancy as record supply is delivered throughout the remainder of the year.” – http://www.colliers.com/-/media/files/marketresearch/unitedstates/markets/kansas%20city/1q17_multifamily.pdf

• “Many of those projects are going up in downtown Kansas City and similar places such as old Overland Park, where developers say renters both young and old covet a walkable environment.” – http://kcur.org/post/millennials-baby-boomers-fuel-apartment-growth-kansas-city#stream/0

• “Landlords of upscale properties across the U.S. are bracing for rough conditions in 2017 that will likely force them to slash rents and offer deep concessions as a glut of supply brings a seven-year luxury-apartment boom to an end.” – https://www.wsj.com/articles/luxury-apartment-boom-looks-set-to-fizzle-in-2017-1483358401

• “The turnaround follows a more-than-26% jump in U.S. apartment rents since early 2010, far outstripping inflation and income growth.” – https://www.wsj.com/articles/luxury-apartment-boom-looks-set-to-fizzle-in-2017-1483358401

• “Multifamily permits rose quicker, perhaps reflecting the increased demand for rented units over owned” - http://www.kansascity.com/news/business/article143634064.html

• “Multifamily housing retreated 10% following increases over the previous two months that saw activity rise 20%.” – http://www.builderonline.com/money/economics/construction-starts-rise-slightly-in-may_o

•"...the U.S. Census Bureau reported a seasonally adjusted annual rate of 284,000 units (in the 5+ per building category throughout the U.S.). The May figure represented a 9.8% decline from April and a 25.7% decline year-over-year. Year-to-date, a total of 135,100 multifamily units have been started nationwide, a 5.4% decline from the same period a year ago." - https://www.cbre.us/research-and-reports/US-MarketFlash-Good-New-for-Multifamily-Market

• According to a housing study commissioned by Lee’s Summit, MO by Vogt Strategic Insights, released in June 2017, shows Lee’s Summit, MO can support another 2,500 luxury or Class B apartments, city officials said “In 2016, the city approved five new apartment complexes, for a total of 1,419 living units.” - http://www.kansascity.com/news/local/community/lsjournal/article158663494.html

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