New report projects downtown KC population boom
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Sunrise over downtown KCMO. Photo: Travis Meier/Axios
Kansas City's downtown population is projected to grow by roughly 33% over the next decade, according to a new report by the Downtown Council.
Why it matters: The unprecedented influx of nearly 11,000 new residents would require a lot more housing, even as city leaders and advocates struggle to balance affordability with developer incentives.
By the numbers: Downtown totals 33,297 residents as of Q1, per the report, which used data from Esri Business Analyst.
- The report projects 44,000 residents by 2035.
- That's almost 1,100 additional residents per year, a faster rate than previous decades.
Context: Kansas City has an affordable housing shortage of 68,000 homes, even as luxury towers obtain city tax incentives and rents rise.
- In 2021, the city mandated that new housing projects seeking incentives designate 20% of their units' rent for households making 60% of the median income, or pay $100,000 per unit to the city's Affordable Housing Trust Fund.
- An investigation last year by the Kansas City Business Journal found the policy had not directly contributed to affordable housing because developers found other funding sources.
The latest: Mayor Quinton Lucas last week introduced an ordinance that would reduce the $100,000 fee per unit to $5,000.
- The proposed change was part of a broader alignment with Port KC, which also closed a loophole with construction workers' prevailing wage standards.
What they're saying: A statement from Lucas' office to Axios says the previous policy "failed to yield meaningful affordable housing progress," but pointed to the city's Housing Trust Fund as "producing clear results."
- The mayor's office anticipates that, now that the fees are lower and in line with Port KC, developers will build using city incentives and ultimately contribute to the trust fund.
- The Housing Trust Fund has spent roughly $41 million to produce 2,600 affordable units since it was established in 2018.
Reality check: Downtown KC's growth since 2000 (147%) "only brought us back into competition with our peer downtowns, as their residential populations are still ahead of our own," Tommy Wilson, a business director for the Downtown Council, writes.
- "More residents in Downtown increases economic activity, contributes to a sense of safety, and provides steady foot traffic for our restaurants and retailers."
The bottom line: Several projects underway near downtown are anticipated to deliver roughly 1,000 apartments later this year.