Whether you’re looking to invest in the Kansas City real estate market or find a home to call your own in the Kansas City area, now just might be the perfect time to do so. Real estate in Kansas City is booming at the moment and it doesn’t seem to be slowing down anytime soon.
Last year, NextAdvisor (a partner of TIME) included Kansas City, MO in their list of the top ten housing markets worth your consideration. The city comes with a lot of appeal, attraction, and incentivization for homeowners looking for a friendly, yet profitable place to call home.
The area has a lot to offer – two exciting sports franchises in the Chiefs (NFL) and Royals (MLB), some of the best barbeque and steaks in the world, a strong history that dates back to the early-1800s, a deep love for jazz music, and a beautiful atmosphere with friendly people.
There’s a lot to like about the Kansas City area and the current state of the KCMO real estate market is one of the most attractive things at the moment. In fact, real estate agents and real estate professionals are currently thriving in Kansas City.
We know what the city has to offer, but it’s the potential it brings that has many investors ready to invest and turn a massive profit.
Kansas City’s Population Has Been Growing
According to the 2020 census, over 509,000 people call Kansas City home and that number is on a steady incline to this day. In fact, we’re seeing the same type of growth in surrounding areas. The greater Kansas City area is currently the 36th most populous metro in the US.
Kansas City has seen its population increase by more than 10% over the past decade, seeing an increase of nearly 50,000 people. While downtown is seeing growth, it’s the suburbs that are seeing the most growth. The population is expected to grow by 400,000 people by 2040.
KCMO’s Job Market is Also Growing
When the job market is booming, so is the real estate market. Unemployment in Kansas City was down to a mere 3.0% in 2021, which was almost 1.0% lower than the national rate at the time. The GDP has also grown nearly 40% over the past decade, up to $142.5 billion in 2021.
Despite losing jobs during the COVID-19 pandemic, like most cities in the United States, Kansas City quickly regained more than 125,000 jobs last year. Not only that, but job postings are at an all-time high, which is why so many people are attracted to the Kansas City area.
Real Estate Supply Might Be Low, But Demand Is High
In Kansas City, demand remains much higher than supply, which is a big reason why we’re seeing an increase in home value. More people are looking to buy in the area and while active and new listings are down and there aren’t many homes for sale, that means homeowners looking to sell are seeing an increase in sale price.
The Kansas City, MO real estate market is driven by supply and demand, much like any other product or service. If you can find the right investment and get it at a price that makes sense, you can turn a good profit in the end because someone out there is ready and willing to pay extra to move to KCMO.
Home Values Are On the Up and Up
In November 2021, the Zillow Home Value Index for Kansas City homes was just under $210,000. As of March 2022, that number has risen to above $222,000. That number was as low as $131,000 in December of 2016. You can expect to see those numbers continue to rise.
South Plaza is one of the more expensive neighborhoods in Kansas City, with homes selling for an average price $450,000. Likewise, Blue Hills is one of the more affordable neighborhoods with a median list price of just over $120,000. It can be quite expensive, but also fairly cheap.
Kansas City is an Attractive Renter’s Market
Another reason why so many investors are loving the idea of investing in Kansas City real estate house is because of the renter’s market. Most people that are ready to live in a home aren’t willing to buy the home themselves. Instead, they’re choosing to rent it out from someone else.
You could be that someone else and if you are, you can make some good monthly income from it. Renting increased by 18% from 2020 to 2021 and the cost of renting has increased nearly 30% over the past three years. A lot of people are renting, but they first need a place to rent.
Kansas City is More Affordable Than Most Cities
With the way the economy is constantly changing, many people are interested in living in a city that’s affordable. Luckily, that’s exactly what Kansas City, MO is. In fact, the entire state of Missouri is listed as the 7th most affordable state in the United States – which is a good sign.
Not only that, but Kansas City’s affordability index is currently a 2 out of 10 – meaning it’s more affordable than most cities in the country. We live in a day and age where people need spending money if they want to live a healthy, happy, and rewarding life. Kansas City allows for just that.
Quality of Life in KC is Admirable, to Say the Least
Not only is Kansas City one of the most affordable places in the nation, it offers residents a higher quality of life than most other cities. In fact, it ranks 18th in the world (out of 232 cities) and 8th in the nation when it comes to quality of life. People are happy and people are thriving.
Not only that, but Kansas City ranks 10th in the world in purchasing power, 2nd in the world in property price-to-income ratios, 18th in the world in healthcare, 21st in the world in traffic commute time, and 56th in the world in pollution. If you want a nice place to live, you’ve found it.
