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May 30th, 2019 by Marco Santarelli
An Overview of Topeka Real Estate Market 2019
If you are looking at buying a house in Topeka real estate market as a potential investment opportunity, you must read till the end. Topeka is rarely on anyone’s radar once they have done with school. They learn that it is the capital of Kansas and the site of critical historic court cases before relegating it to “flyover country”. However, Topeka remains a vibrant city, and there are a number of reasons to invest here. Let’s learn more about the city before discussing the benefits of investing in the Topeka real estate.
Topeka is home to over a hundred thousand people. The city is the state capital, and it is the center of a metropolitan area with as many suburban residents as urban ones. This is why the Topeka housing market contains almost a quarter million people. You must be thinking that size is not reason enough to invest in a housing market. Well, let us then discuss the latest market trends and find out what are the overall prospects of Topeka real estate investment in 2019.
Topeka Real Estate Market Forecasts 2019 & 2020
The median home value in Topeka is $112,200 on Zillow.com. Topeka home values have gone up 5.7% over the past year and Zillow’s Topeka real estate market prediction is that the prices will rise 2.2% in 2020. The median list price per square foot in Topeka is $90, which is lower than the Topeka Metro average of $98. The median price of homes currently listed in Topeka is $128,250. The median rent price in Topeka is $840, which is lower than the Topeka Metro median of $850.
According to LittleBigHomes.com, the Topeka real estate market forecast for the 12 months ending with the 3rd Quarter of 2019 is positive. Their accuracy of the Topeka real estate market trend prediction is 75%. Accordingly, they estimate that the probability for rising home prices in Topeka is 75% during this period. If this Housing Market Forecast is correct, home prices will be higher in the 3rd Quarter of 2019 than they were in the 3rd Quarter of 2018.
Topeka Housing Market Forecast 2019 – 2021
The Topeka housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Topeka housing market trend prediction is 79%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Topeka is 79% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Topeka Real Estate Market Forecast.
Topeka Real Estate Market Trends
Topeka real estate market trends show a -3% week-over-week drop in average listing price and a 0% rise in median rent per month. Trulia has 557 resale and new homes for sale in Topeka, KS, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
Topeka Housing Market Statistics
There are 522 homes for sale in Topeka, ranging from $3K to $3.7M on Realtor.com. 34 of which were newly listed within the last week. Additionally, there are 96 Topeka rental properties, with a range of $375 to $1.8K per month. Topeka housing market also has many affordable condo/townhomes and multi-families properties. In February 2019 the housing market in Topeka, KS was a buyer’s market, which means there were roughly more active homes for sale than there were buyers.
The median list price of homes in Topeka, KS was $115K in February 2019, flat year-over-year. The median listing price per square foot was $71. Homes in Topeka, KS sold for 1.75% below asking price on average in February 2019. Homes in Topeka sell faster than average compared to other cities in Shawnee County. It takes an average of 119 days on market for a home to sell in Topeka.
The median list price in Topeka, Kansas is $144,250 on Movoto.com. The median list price in Topeka went up 41% from April to May. Topeka’s home resale inventories is 12, which increased 9 percent since April 2019. The median list price per square foot in Topeka is $67. April 2019 was $67. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in May.
Topeka, KS Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties 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.
As per the data from the real estate company called Neigborhoodscout.com, the median house price in Topeka, KS is $104,707, which indicates that home prices in Topeka are below the national average for all cities and towns. Single family detached homes are the single most common housing type in Topeka, accounting for 65.69% of the city’s housing units.
Other types of housing that are prevalent in Topeka include large apartment complexes or high rise apartments ( 20.57%), duplexes, homes converted to apartments or other small apartment buildings ( 6.86%), and a few row houses and other attached homes ( 4.00%).
The most prevalent building size and type in Topeka are three and four bedroom dwellings, chiefly found in single-family detached homes. The city has a mixture of owners and renters, with 54.83% owning and 45.17% renting.
Currently, there are 374 single family homes for sale in Topeka, KS on Zillow. Additionally, there are 79 single family homes for rent in Topeka, KS. Under potential listings, there are about 39 Foreclosed and 85 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Topeka, KS Foreclosures And Bank Owned Homes
The percent of delinquent mortgages in Topeka is 1.1%, which is higher than the national value of 1.1%, according to Zillow.com. There are currently 73 properties in Topeka, KS that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 311.
In April 2019, the number of properties that received a foreclosure filing in Topeka, KS was 15% lower than the previous month and 50% lower than the same time last year.
Home sales for March 2019 were up 0% compared with the previous month, and up 0% compared with a year ago. The median sales price of a non-distressed home in Topeka was $0. The median sales price of a foreclosure home in Topeka was $0, or 0% higher than non-distressed home sales.
Topeka Home Prices And Real Estate Appreciation
Topeka real estate appreciation rates have tracked to near the national average over the last then years, with the annual appreciation rate averaging 0.72% during the period.
Over the last year, Topeka real estate appreciation rates have trailed the rest of the nation. In the last twelve months, Topeka’s real estate appreciation rate has been 3.80%, which is lower than appreciation rates in most communities in the United States. In the latest quarter, the house appreciation rates in Topeka were at -0.48%, which equates to an annual appreciation rate of -1.92%.
Notably, Topeka’s real estate appreciation rate in the latest quarter is one of the lowest in the U.S. The above statistics on real estate appreciation in Topeka were taken from NeighborhoodScout.com. You can visit their page for more information. Relative to Kansas, their data shows that Topeka’s latest annual real estate appreciation rate is lower than 90% of the other cities and towns in Kansas.
10 Best Neighborhoods In Topeka For Real Estate Investment
There are 81 schools in Topeka, KS. There are 37 elementary schools, 14 middle schools, 13 high schools and 17 private & charter schools. There are 29 neighborhoods in Topeka. Some of the best neighborhoods in or around Topeka, Kansas are Central Topeka, Oakland and Randolph.
East Topeka has a median listing price of $249.2K, making it the most expensive neighborhood. Monroe is the most affordable neighborhood, with a median listing price of $20K. Here are the 10 best neighborhoods in Topeka to invest in real estate because they have the highest real estate appreciation rates (List by Neigborhoodscout.com).
10 Reasons For You To Invest in Topeka Real Estate in 2019
Investing in real estate is touted as a great way to become wealthy. Is Topeka rental property good for investment? Planning to invest in the Topeka, KS real estate market? Many real estate investors have asked themselves if buying a property in Topeka is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Topeka housing market 2019 forecast for answers on why to put resources into this sizzling market. Home prices in Topeka are predicted to rise by 2.2% in 2020. Here are the top 10 reasons to invest in the Topeka real estate in 2019.
1. The Stable Economy
Topeka being the state capital has a number of effects on the economy. Government workers make up one fifth of the employment base, whether they work for the city, the county or the state. These jobs are almost recession proof and well paid, for better or for worse for the taxpayers.
Being the state capital, is it also the home of many service providers. There are two hospitals here and the regional VA hospital. This creates a large pool of jobs that are immune to the rise and fall of the general economy.
2. The Relatively Large Student Population
Every state capital has at least one state school campus. Washburn University in Topeka employs nearly two thousand people and educates about seven thousand scholars. However, those who want to own Topeka rental properties catering to students have more options than that. You could own Topeka rental properties by Baker University, Friends University, and a variety of tech schools.
3. The Military Market
The old military base near downtown Topeka closed in 1973. Fort Riley is located one hour west of Topeka. This area is considered laid back. Many choose to live halfway between the military base and Topeka so that they are in easy reach of both Topeka’s amenities and work. Other investors own properties on the edge of the Topeka real estate market while advertising proximity to the military base.
4. The Affordable Real Estate
The average home in Topeka costs around 112,000 dollars. Mobile homes can be snapped up for as little as forty thousand dollars. You can buy half a dozen mid-market Topeka rental properties for the cost one property in hotter real estate markets. For half a million dollars, you could buy several mid-market condominiums or one or two units in the few luxury condominium buildings catering to the upper class.
At the other end of the spectrum, more than a third of the properties in the Topeka real estate market cost between 50 and 100,000 dollars. You could buy ten starter homes for the cost of the average single-family home in hotter real estate markets.
5. The Slow, Steady Appreciation
Home prices in Topeka grew six to seven percent last year. The median home value increased almost ten thousand dollars since 2016. Why would the Topeka real estate market see steady appreciation when there is tepid demand? This is because there is almost no pressure to build anything new, though the population is stable and slowly growing.
This results in home prices in the Topeka housing market increasing a little faster than the rate of inflation. There are actually bidding wars for mid-range homes for which supply is well below demand.
6. The Decent Rental Rates
Median gross rent in the Topeka real estate market was 720 dollars in 2016. It was approaching 800 dollars a month for the Topeka housing market in 2019. Note that you can charge much more for detached single family Topeka rental properties. Rental rates in the suburban Topeka housing market are also higher than the rental rates you can charge inside the city limits.
7. The Redevelopment of Downtown
Topeka is trying to revitalize downtown. The demand for lofts by young professionals is far higher than the supply. There is a shortage of luxury housing in downtown, as well. This creates an excellent opportunity for those who want to renovate properties to meet this niche.
8. It Is Somewhat Landlord Friendly
Kansas is not as landlord friendly as much of the South, but it is certainly more favorable to landlords than states like Illinois. Security deposits are limited to by state law based on whether or not the apartment is furnished, though you can charge extra if they have pets.
How long you have to wait to evict for nonpayment of rent depends on the tenancy, but it is ten days if they have a tenancy of over three months. If someone repeatedly breaks the same lease conditions, you can require them to move out in thirty days. If someone is violating the law or their actions are affecting the health and safety of others, you can evict them.
9. The Favorable Legal Environment
We mentioned that Kansas is landlord friendly. However, cities can enact various rules that burden landlords or undermine their rights. Kansas is notable for passing a law that limits what cities can do to undermine a landlord’s rights, whether it is mandating rent control or limiting what landlords can do with the property.
This law was in response to Hutchinson requiring rental units to be registered and inspected regularly. The same law prevents inclusionary zoning, zoning laws that mandate that a certain number of houses or Topeka rental properties in an apartment building be set aside at below market rates.
This is the exact opposite of what is being seen in so-called hot markets on the West Coast. Oregon’s statewide rent control law in addition to many other restrictions put on landlords is the worst-case scenario.
10. The Favorable Tax Climate
The overall state and local tax burden in Kansas hovers around the national average. However, their per capita state and local income tax burden is well below average. The property taxes owed on homes in the Topeka real estate market average 1.3 percent.
While this is slightly above the 1.1 percent national average, this results in modest 1500 dollar property tax bills given the low price tag for Topeka rental properties. Better yet, Topeka lowered its property tax levy in 2019.
Topeka Real Estate Investment
Maybe you have done a bit of real estate investing in Topeka, Kansas but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. If you are a home buyer or real estate investor, Topeka real estate investment definitely has a track record of generating one of the best long term returns in the U.S. through the last ten years. If you invest wisely in Topeka real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Topeka, Kansas. Topeka is an affordable, stable housing market seeing slow growth in rental rates and property values. Better yet, the legal and tax environment is favorable to property owners, while other parts of the country seem intent on destroying their rental markets.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Topeka, KS is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
Other Best Places To Invest In Real Estate
Another market that we suggest is the housing market in New Orleans, LA. New Orleans real estate investing offers a good combination of short-term renters like students and tourists and a permanent population of renters who cannot afford to buy homes. Geography and market forces limit housing supply, keeping home values and rents stable.
The average home price in the New Orleans real estate market 2019 is $180,000. That alone makes it affordable compared to other large cities. One of the unique features of New Orleans is how many older homes it has. This does not just create a distinct architectural look and cultural atmosphere.
It means that there are many older homes for sale. For example, in Orleans Parish, roughly two fifths of all homes were built before the 1950s. These homes may be harder to maintain, but they also tend to be affordable and in walkable communities that newer residents desire. It also opens the door to investors buying homes in dire need of repair at a discount, fixing it, and then renting it out.
Another market that we suggest is the housing market in Wilmington, NC. The Wilmington real estate investment is stable, slowly growing and not going to see a change in the demand for rental properties any time soon. Several factors contribute to rents being higher than you’d expect given the average wages and property values, increasing the ROI on Wilmington rental properties. Furthermore, there are several niches you can explore to achieve even higher returns, depending on the market you’d like to serve.
Another point in favor of Wilmington investment properties over those in hotter markets like Orlando, Florida is the far lower overall tax rate. We’ve already mentioned their low property tax rate. However, they are also notable for having very low income taxes, too. This means you’ll have low taxes on Wilmington investment properties whether you’re paying them as an individual or own them through a limited liability corporation.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
The Stable economy
Somewhat landlord friendly https://www.avail.co/education/laws/kansas-landlord-tenant-law
Affordable real estate
Favorable legal environment
Market Data, Trends and Statistics
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