Multifamily

Multifamily has proven historically to be among the most solid of investments. The 2024 figures show that the Wichita market has remained strong and stable.

New development in the Wichita MSA decreased from 2020 through 2022 with under 1,000 unites completed during this three-year period due to COVID-19, followed by pricing increases on construction materials and labor shortages.

New development in the Wichita market was steady from 2013 to 2019, adding approximately 650 units to the market each year. However, development experienced a sharp decline from 2020 through 2022 with under 1,000 units completed during this three-year timeframe.

Multifamily investments in the Wichita MSA stayed strong through the end of 2020 and throughout 2021. The total value of transactions in the market hit a record level in 2020, and the 2021 surpassed it.

New development in the Wichita market was steady from 2013 to 2019, adding approximately 650 units to the market each year. However, development experienced a sharp decline in 2020 with just over 300 units completed.

COVID-19 has affected every aspect of life and business in 2020. This holds true for commercial real estate and the multifamily market accross the country. According to the US Census Bureau, nationally 27% of renters reported struggling to pay rent–in Kansas the figure was 25%.

An increasing number of households are renting duplexes as the property type continues to appeal to a variety of age range demographics. Empty-nesters often require less living space than they once did and no longer want the maintenance that comes with home ownership.

The Wichita multifamily market remains strong after a year of negligible fluctuations in rents, occupancy rates and new units built in market, though owners and developers are cautious given the unexpected shock of global pandemic.

The past few years of Wichita has seen numerous new complexes enter the market through redevelopment of older structures. More than 1,000 proposed units are on the drawing board across Wichita. From 2014 to 2016 an average of 650 units were added per year with a spike in 2017 as over 800 units were added.