Kansas City is HOT
The Kansas City real estate market has been HOT the last few years. Even with all the problems/challenges that Covid brought to every market/industry, demand for housing in KC has increased. The downward trend in available housing has led to several construction projects and permits for both single and multi-family homes. In this post we will take a look at some factors that have played a role in keeping the real estate market in KC strong through the last couple years.
1. One factor to note is that home prices in Kansas City have risen significantly over the past year. According to Zillow the average home price in KC currently sits around $222,000, up about 6.3% over the last year and these homes go to pending on average of about 9 days on market. A few reasons for the rise in home prices are low interest rates, several development/infrastructure projects all around the city, and thousands of people moving into the area. The lack of inventory across the city is the biggest driver of the rising prices.
2. The inventory of available homes in Kansas City has seen a decline over the last few years leading to a significant increase in building permits issued in 2022. There has been a cooling off period for these permits in early months of 2022, but as summer comes expect to see these numbers to go up once again. Developers have their eyes on creating a 40-story skyscraper next to the Kauffman Center in Downtown KC, with the prospect of having a second skyscraper to follow. Lux Living has also proposed a 30-story residential and hotel tower on the corner of Wyandotte and 14th, right next to the Power and Light District.
3. Another key factor to the consistency in the Kansas City real estate market is its affordability when compared to other cities in the US. According to a couple recent articles by Forbes and Rocket Mortgage, KC ranks in the top 10 for most affordable cities for homebuyers, along with several other midwest cities. Investing in the Midwest has brought many investors a lot of success as they try to diversify out of their more expensive markets.
4. Growth in several key industries has brought Kansas City many new jobs which in turn has brought thousands of people to the city. Meta has constructed a data center on the outskirts of the city, with rumors of a potential campus in the future. A Google affiliate has been in talks for over a year about a potential $600 million data center in the Northlands. The expansion of the Kansas City International Airport has brought a record number of travelers to the city, with one of the busiest months at the airport since 2019. Saint Luke’s East Hospital announced a $52 billion expansion project in April. Panasonic began construction of a $4 billion electric vehicle battery plant in De Soto in November and placed the first steel beam in April.
These are just a few of the many factors that have led to high demand in the Kansas City real estate market. Kansas City is on the rise, keep the city on your radar as the potential in the city for investors continues to grow. As always, happy to discuss the market with you or to learn more about your market. Until our next post Bigger Pockets!
(Average Home Price) https://www.zillow.com/home-values/18795/kansas-city-mo/
(Affordable Cities) https://www.forbes.com/advisor/mortgages/real-estate/most-affordable-cities-to-buy-a-home/
(Affordable Cities) https://www.rocketmortgage.com/learn/best-places-to-invest-in-real-estate
(Active Listing Count) https://fred.stlouisfed.org/series/ACTLISCOU28140
(Google Affiliate) https://huntmidwest.com/google...
(Kansas City: Why Invest Here?) https://www.biggerpockets.com/forums/48/topics/1112691-kansas-city-market-why-invest-here
(KCI Airport) https://www.kmbc.com/article/m...
(Lux Living) https://cityscenekc.com/lux-li...
(Meta) https://fox4kc.com/business/me...
(Panasonic) https://fox4kc.com/news/panasonic-sets-first-steel-beam-for-4b-electric-vehicle-battery-plant/
(Saint Lukes Hospital) https://www.constructiondive.c...
(Skyscraper) https://flatlandkc.org/news-is...