There continues to be a strong demand for multifamily residential units throughout the Wichita area. New projects quickly attract tenants and often have waiting lists. The demand is for all types of properties ranging from large complexes to duplexes and townhomes. According to the mid-year Savage Report, the vacancy rate for the apartments they surveyed was just 6.9%. This is down from 7.9% at the end of 2018 and is the lowest vacancy rate the market has seen in the last eleven years. The vacancy rates in the northwest and northeast sectors were the lowest in the city at 4.7% and 5.3%, respectively.
Vibrant Multifamily Market
The rate of new construction slowed in 2019. The slowdown was helpful in that it allowed the market to absorb much of the inventory that had been available the previous two years. Large complexes opened at Kellogg and 127th Street on the east side and at 37th Street North and Maize Road on the far west side of the city. Forty new units opened in the Spaghetti Works project bringing the total number of apartments in the core area to just under 3,000. Some new projects did start construction last year. Three different housing projects were started near the Wichita State University campus, and construction began on a 203-unit development in the Delano Historic District. Construction began on a large number of duplexes and townhomes. Demand for these types of properties is particularly strong, with many developments reporting waiting lists of prospective residents.
Apartment complexes are the most sought after investments in Wichita and throughout the country. Real Capital Analytics reported that multifamily acquisitions rose by 4.4% in the United States last year. The $184 billion spent on apartment purchases was the highest volume since 2005. Locally there were over two dozen complexes sold. The largest were Southlake Village Apartments, 288 Formatted: Superscript units, The Farmington Place Apartments, 253 units, and the 240-unit Westlink Village.
Over two dozen apartment complexes were sold. The largest was the 288 unit Southlake Village Apartments at 4141 S. Seneca.
Construction began on a new 203-unit complex south of the public library in the Delano Historic District.