Metro Multi-Family Construction

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AlkaliAxel
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Re: Metro Multi-Family Construction

Post by AlkaliAxel »

If this holds for several more quarters...then it's possible to say the urban core is the fastest growing region in the metro and no longer the suburbs. That would be incredible and a gamechanger for the metro.
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Re: Metro Multi-Family Construction

Post by Sani »

Is there a map showing the boundaries of the submarkets? I'm curious to see where they draw the boundary between Northern Johnson County and Southern Johnson County. If you make the mistake of listening to neighbors talk about potential apartment projects in Shawnee or reading comments on Nextdoor, you'd think the city was approving a new, unaffordable, ultra-lux apartment complex on every block that will also somehow become a tenement slum and destroy property values within the next few years.
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Re: Metro Multi-Family Construction

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^Cushman doesn't' show a map for the multifamily report but they do have one for the office report...
https://cw-gbl-gws-prod.azureedge.net/- ... 1_2022.pdf
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Re: Metro Multi-Family Construction

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AlkaliAxel wrote: Thu Apr 28, 2022 6:28 pm If this holds for several more quarters...then it's possible to say the urban core is the fastest growing region in the metro and no longer the suburbs. That would be incredible and a gamechanger for the metro.
Would like to see what Colliers and Berkadia detail reports show as well. And this doesn't include absorption of single family homes, which tend to have more in household. Would be impressive though if RCP corridor maintains over 50% of metro MF absorption for many quarters, last Cushman report shows nearly 70%.
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Re: Metro Multi-Family Construction

Post by earthling »

Another source agreeing metro demand looking good. With water problems looking to become more serious in the West this year, wouldn't be surprising to see some migration toward Midwest sooner than most may think.

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AlkaliAxel
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Re: Metro Multi-Family Construction

Post by AlkaliAxel »

Jeez that's a huge jump in multi-family units over the previous year. Is KC actually beating trends in that category or is everyone doing that?
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Re: Metro Multi-Family Construction

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AlkaliAxel wrote: Wed May 04, 2022 12:57 pm Jeez that's a huge jump in multi-family units over the previous year. Is KC actually beating trends in that category or is everyone doing that?
national trend, probably only a few cities in the entire country that are not seeing this. Single family homes are now out of reach for most young people due to cost and inflation etc so multi family is picking up the slack.

This is why KCMO needs to be careful on how hard they are on developers. The apartment trend in KC could easily trend to the suburbs to fill the need if KCMO is too difficult to make the numbers work. And every development that ends up in the burbs vs the city will have massive long term effects on the city.
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Re: Metro Multi-Family Construction

Post by earthling »

AlkaliAxel wrote: Wed May 04, 2022 12:57 pm Jeez that's a huge jump in multi-family units over the previous year. Is KC actually beating trends in that category or is everyone doing that?
The jump is proportionally higher for KC but nearly all markets have some gains compared to previous year. However as posted on last page, for this quarter KC appears to have more actual absorption than even some larger markets.

viewtopic.php?p=639023#p639023
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Re: Metro Multi-Family Construction

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GRID wrote: Wed May 04, 2022 1:03 pm This is why KCMO needs to be careful on how hard they are on developers. The apartment trend in KC could easily trend to the suburbs to fill the need if KCMO is too difficult to make the numbers work. And every development that ends up in the burbs vs the city will have massive long term effects on the city.
According to Cushman, RCP corridor had 70% of metro absorption last quarter...
viewtopic.php?p=639087#p639087
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Re: Metro Multi-Family Construction

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earthling wrote: Wed May 04, 2022 1:09 pm
AlkaliAxel wrote: Wed May 04, 2022 12:57 pm Jeez that's a huge jump in multi-family units over the previous year. Is KC actually beating trends in that category or is everyone doing that?
The jump is proportionally higher for KC but nearly all markets have some gains compared to previous year. However as posted on last page, for this quarter KC appears to have more actual absorption than even some larger markets.

viewtopic.php?p=639023#p639023
What I meant to ask was is KC's trending faster than most of the markets, or are they all moving rapid like that
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Re: Metro Multi-Family Construction

Post by earthling »

Proportionally, KC is trending faster than many. IE, Atlanta absorbed more total but had less growth (640 units) over previous year than KC did (2216 units) in same period.
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Re: Metro Multi-Family Construction

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earthling wrote: Wed May 04, 2022 1:11 pm
GRID wrote: Wed May 04, 2022 1:03 pm This is why KCMO needs to be careful on how hard they are on developers. The apartment trend in KC could easily trend to the suburbs to fill the need if KCMO is too difficult to make the numbers work. And every development that ends up in the burbs vs the city will have massive long term effects on the city.
According to Cushman, RCP corridor had 70% of metro absorption last quarter...
viewtopic.php?p=639087#p639087
And the city needs to try and maintain that as it can change quickly.
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Re: Metro Multi-Family Construction

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^There will need to be some change on incentives approach. At least match Minneapolis incentives program, which is a little less strict yet still has a lot of city MF construction momentum.
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Re: Metro Multi-Family Construction

Post by Sani »

GRID wrote: Wed May 04, 2022 1:03 pmThis is why KCMO needs to be careful on how hard they are on developers. The apartment trend in KC could easily trend to the suburbs to fill the need if KCMO is too difficult to make the numbers work. And every development that ends up in the burbs vs the city will have massive long term effects on the city.
I dunno... Developers may not want to contend with some of the city's demands, but the suburbs are challenging in other ways. Have you seen what developers in Shawnee have had to contend with in the last few years? By the reaction of the neighbors to every proposal, you'd think they were proposing a low-security prison for convicted baby eaters or something, and sometimes the city council feels the same way.
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Re: Metro Multi-Family Construction

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Sani wrote: Wed May 04, 2022 10:00 pm
GRID wrote: Wed May 04, 2022 1:03 pmThis is why KCMO needs to be careful on how hard they are on developers. The apartment trend in KC could easily trend to the suburbs to fill the need if KCMO is too difficult to make the numbers work. And every development that ends up in the burbs vs the city will have massive long term effects on the city.
I dunno... Developers may not want to contend with some of the city's demands, but the suburbs are challenging in other ways. Have you seen what developers in Shawnee have had to contend with in the last few years? By the reaction of the neighbors to every proposal, you'd think they were proposing a low-security prison for convicted baby eaters or something, and sometimes the city council feels the same way.
Also a major issue in OPs mayoral race, which the current mayor barely beat a political novice.
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Re: Metro Multi-Family Construction

Post by earthling »

Permits up to April. KC metro still in top 25 for multifamily YTD. Note that KC still building slightly more multi-family than single family, more inline with older urban areas than most of Sun Belt.

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https://www.census.gov/construction/bps ... 202204.xls
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Re: Metro Multi-Family Construction

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Newmark Q1 national report puts KC in top 25 for new supply and absorption over year, 3rd in Midwest.
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https://www.nmrk.com/storage-nmrk/uploa ... Report.pdf
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Re: Metro Multi-Family Construction

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This shows project phase of various MF projects in Jackson County, including some that have been delayed/abandoned. About 150 project updates since start of 2022.

https://www.construction.com/projects/? ... rtments%2F
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Re: Metro Multi-Family Construction

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May Metro Permits. Permit momentum slowed down for KC metro overall. But still in top 25 for YTD MF permits...

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https://www.census.gov/construction/bps ... 202205.xls
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