Now that we are through Q1 of 2026, how are things looking for KC multifamily absorption and deliveries? The relationship between absorption and deliveries is a key one, along with "new starts." Absorption refers to the number of units that became occupied or vacant relative to the previous measurement. It is the net change in occupied units. If Kansas City had 100,000 occupied apartments as measured at the end of 2024 and 105,000 occupied apartments at the end of 2025, absorption would be 5,000 net units over that time frame. You can have negative absorption when the total occupied units goes down; 100,000 units occupied to 95,000 units occupied. In general, it is a reference point for demand in a market and can tell one side of the "what can we expect for occupancy in this MSA, county, or suburban district?" story. The other side of that story is told by deliveries. Deliveries refers to the number of completed new construction units that are ready to begin being leased and occupied over a given time frame. If there are 110,000 rentable apartments in a city at the end of 2024, and there are 117,000 rentable units at the end of 2025, this would mean that 7,000 new units have been added to that available supply over that 12-month time frame. Deliveries equal 7,000, or 6.4% of existing inventory (Deliveries % = Delivered Units / Initial Inventory). Absorption and deliveries are the supply and demand markers (along with many other variables that serve as leading and lagging indicators, but are still part of the same story) for multifamily in an MSA. If 5,000 units are delivered across a 12-month period and 5,000 units are absorbed, then occupancy rates will remain relatively stable for that time frame, all things being equal. If 10,000 units are delivered and only 5,000 are absorbed, then occupancy will trend down on average for that area because there was more new product added than there was immediate demand for. Usually when this happens, especially multiple quarters in a row, average rents will begin to stagnate or even decrease to facilitate more demand. Cheaper apartments means more people can afford them, which means more people will move into them instead of getting a mortgage or living in another city, which means occupancy rates will climb.

Over the last 3 years assisting with operations across 1,600 apartments in 5 states, I have helped to recruit, hire, train, and develop numerous maintenance supervisors of varying talent levels. In doing so, I thought I would synthesize some of the lessons I learned along the way to help other operators with their recruiting process based on what I found worked well. Vetting Past Results References matter more than the resume. IF AT ALL POSSIBLE a word of mouth referral to “head hunt” a great supervisor who is locked up at another company is invaluable. You may get lucky sometimes, but many times the best talent is not actively putting out resumes during your hiring spree so without these word of mouth referrals you may not have access to them. If you have property managers or regular technicians that you trust and are performing very well, then ask them who their supervisor was at their last job and ask them for the contact info so you can reach out to plant a seed/start a conversation. Ask your GC who they interface with that is awesome at other companies and try to find out that way. Ask your HVAC supplier who comes in often and is organized and in charge at another company doing apartment work. Read the resume for objective measures that match your operation. Converting 10,000 sq ft of warehouse space into office use is a real accomplishment. It tells you nothing about whether someone can execute 50 apartment turns per month on a repeatable schedule. Match their past scope to your actual scope as closely as you can. This is the “been there, done that” factor. If they come in with the knowledge you need (and sometimes even more) they will show you what it is like to hire “A” talent. I have had this in my last 2 supervisor hires and they both stabilized their assets in a way that no supervisor before them could. One stabilized a highly distressed 250 unit portfolio with a few subordinates and coordinated all the subcontractors for 100+ unit turns in his first 9 months, while the other has taken on and stabilized 900 units with minimal hand holding and improving the talent level of all technicians he oversees through accountability and clear communication.