Kansas City Real Estate – Market Trend & Forecast 2018
According to Zillow.com, the median home value in Kansas City is $136,200. Kansas City home values have gone up 10.5% over the past year and Zillow predicts they will rise 3.4% within the next year. The median list price per square foot in Kansas City is $127, which is lower than the Kansas City Metro average of $136. The median price of homes currently listed in Kansas City is $195,000. The median rent price in Kansas City is $995, which is lower than the Kansas City Metro median of $1,150. The percent of delinquent mortgages in Kansas City is 1.4%, which is lower than the national value of 1.6%.
Currently, Zillow has 3135 homes for sale and 2690 homes for rent in Kansas City Real Estate Market.
The Zillow Home Value Index for April, 2018 was $136,200. Zillow’s prediction of the Zillow Home Value Index for April, 2019 is $140,000, which means a growth rate of 3.4% in 1 year. As per Zillow, the homes in Kansas City metro gained $10.2B in value in 2017. In 2017, more than 1,000 homes have sold in the 66062 ZIP code, making it one of the Kansas City area’s top selling ZIP codes.
As per Trulia.com, the Trends in Kansas City Real Estate Market show a -3% week-over-week drop in average listing price and a 3% rise in median rent per month. Currently the median rent per month is $1000 and the average listing price is $129,101.
Top 10 Reasons To Invest In Kansas City Real Estate Market In 2018
The following are the top 10 reasons to invest in Kansas City Real Estate Market in 2018.
Real Estate Market Overview of Kansas City
In the metropolitan area, the population is estimated at 2.1 million with the median household income of $57,000. The unemployment rate is 4.4%, while the average home price is $86,000. Median rent is $993, with an estimated $667 monthly cash flow. It’s no wonder that the Kansas City real estate market is a great place to invest.
Kansas City is the largest city in Missouri and is the sixth largest in the Midwest. It hosts the Kansas City Chiefs as well as the Kansas City Royals. It’s home to some of the Best Ribs in America. The city has over 200 water fountains, making it only second to Rome, Italy, hence the nickname “City of Fountains.” It is also important to remember that only Paris, France has more Boulevards.
Kansas City has seen a continuous rise in employment prospects over the last 2 years, a trend that directly impacts the Kansas City real estate market. From 2017 to 2018, the city registered a remarkable 1.9% in terms of overall employment.
This could b further broken down to 3.8% in professional and business services, 3% in terms of government-sponsored employment opportunities and 1.9% in the trading, transport and utilities sectors.
Constant Real Estate Friendly Renovation Projects
Kansas City has started to do some major revitalization downtown. More than $6 million has been spent giving the downtown area a facelift and new makeover, including, apartments, offices, condominiums.
These facelifts have also been done both indoor and outdoor malls, restaurants and places for concerts, plays and other forms of entertainment.
Kansas City Real Estate – Trends and Statistics in 2018
Three bedroom homes were listed around $141,000 in January 2017, making it lower than the national average by 25%. RWN Development-Group, LLC members’ neighborhoods were less than $86,000 median price in January 2017.
All these serve towards making Kansas City properties attractively affordable and appealing to investors who are looking for gains in cash flow. In the same month, the rent on a three bedroom was $1,224, making it 0.87% of the cost of buying a house listed at $141,000.
Tourists & Art Destination
Kansas City is a great attraction for tourists, especially art-lovers. Housed by several museums and art destinations, the city is famous for its Jazz Museum as well as the Nelson-Atkins Museum of Art that boast over 40,000 works of art, vintage antiques and contemporary works. The influx of tourists into the city has a direct relationship with the growth of the city’s real estate market.
The Growth in Kansas City
The national average of growth in cities is 4.45%. In Kansas City, in 2010, it was higher than 4.5%. It’s growing with the national rate and is expected to grow even faster in the next few years.
Between the years 2013-2015 the annual growth was 15,000 then raised to 20,000 between 2015-2016. Kansas City is home to some of the biggest companies, such as H&R Block, Sprint, Hallmark and BNSF, to help to fuel the attraction of the Kansas City real estate market.
Rich and Stable Neighborhoods
The city is surrounded by neighborhoods like River Market District as well as the 18th & Vine District and the Country Club Plaza on its north, east & south sides respectively. These vicinities, in combination with the city’s vibrant real estate market, comprise of all amenities residents and non-residents alike can take advantage of and put their investments in.
Some of the best neighborhoods of Kansas City are as follows:
The Johnson County of Kansas City: It is high on the list of home buyers as an ideal place to raise a family. It has highly accredited school districts within the county, which include Shawnee Mission, Gardner Edgerton, Spring Hill, Blue Valley, Olathe and De Soto. Most subdivisions see steady property valuation increases year after year.
The Prairie Village, Kansas City: It is another good neighborhood with low crime rates, mature trees, plenty of quiet neighborhood parks and accessible community pools.
Leawood, Kansas City: It is a low crime rate area and it’s safer than 79 percent of U.S. cities. The residents have a median household income of $133,702, so they are quite well off. The region is home to the biggest Methodist church in the nation – United Methodist Church of the Resurrection.
Lenexa, Kansas City: This neighborhood has the median listing price of $394,000. Fifty-four percent report some school education, contrasted with the national average of 22 percent for all cities and towns.
The weather in Kansas City is beautiful, and usually clear and sunny. You can almost always count on the 4th of July to be a great day to BBQ and shoot off fireworks and watch your neighbors shoot theirs, creating a competition. We’ve witnessed the fireworks while being laid over in nearby Independence, Mo.
The neighborhood fireworks shows have always been as big as the city’s, only they last half the night. During the shows, everyone in the neighborhood waters the top of their houses for a week straight to avoid catching fire. Where else in America can you find that? Even better, the people are friendly and the weather is inviting. There are nearby lakes for boating, fishing, swimming, and camping. The weather is almost always enjoyable. They get most of their rain in the spring of April and summer month of June.
City’s Rich Culture
The city is known for its distinct barbeque cuisine and uniquely crafted breweries, which makes it a preferred destination for foodies. The ancient heritage of Jazz music makes it suitable for immigrants who are passionate about music.
The city lies on the shores of Missouri & Kansas River with a landscape full of fountains. The overall ambience and accommodating culture is sure to attract more and more residents into the city, which will prove to be a boon for investments in Kansas City Real Estate Market.
Cost of Living
Another great factor that is seen as a boon to the Kansas City real estate market is the cost of living. The cost of living in Kansas City is reasonable and affordable. With the cost of rent and the price you might pay for a house already discussed, there’s the cost of day to day expenses to consider.
A basic lunch around the business district is around $12, unless you go to a fast food restaurant and order a combo meal, then you’re looking at $7. Milk is around $3.50 a gallon, a 2 lt. A bottle of Coca- Cola is $1.82. These prices are about the same as the national average at –1%. Housing is at 8% below. Kansas City is 15% below Oklahoma and 8% below Indiana. In fact, New York City is 129% above compared to Kansas City, while 14% below Miami, Fl and 23% below Chicago.
Should You Invest In Kansas City Real Estate: The Verdict
In closing, the Kansas City real estate market is expected to see an incredible amount of growth in 2018 with a year over year growth of 6.16% in the median household income. Low median sales prices, which in return, drives a solid rent is another reason to look into the Kansas City housing market.
Add to that the weather, the many activities at your disposal and the famous “Kansas City BBQ.” There isn’t much left to desire when making an investment in the real estate market. Take a look around, make some calls and talk to some of the people around Kansas City before you decide.
We recommend 8 other hottest US real estate markets for investors looking to build their portfolio of single family rental homes. Following the housing market decline in 2007, single family rental homes became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.