How is The Kansas City Housing Market 2019?
Kansas City is the largest city in the U.S. state of Missouri, famous for its distinct barbeque cuisine and jazz heritage. Also nicknamed the City of Fountains, the Kansas City is now emerging as a growing market for real estate investments. Overall, the city sees a 1% weekly rise in average listing price. Also, the median rent in the Kansas City Real Estate Market is increasing at the rate of 5% per month. Based on the last twelve months, short-term real estate investors have found good returns in Kansas City.
Kansas City appreciation rates in the latest quarter were at 1.75%, which equates to an annual appreciation rate of 7.19%. The Kansas City housing market is strong and stable, and in many ways the envy of housing pundits on both coasts. Home sales were up about 7 percent and prices were up about 6 percent throughout the region in the previous year. In 2017, a WalletHub survey for real estate market growth in United States listed the “Kansas City Real Estate Market” at number 18 out of 300 of the fastest growing cities in the US.
Kansas City Real Estate Market Forecasts 2019 & 2020
The median home value in Kansas City is $148,900 on Zillow. Kansas City home values have gone up 8.8% over the past year and Zillow’s Kansas City Real Estate Market prediction is that the prices will rise 3.9% within the next year. The median list price per square foot in Kansas City is $139, which is lower than the Kansas City Metro average of $146. The median price of homes currently listed in Kansas City is $210,000. The median rent price in Kansas City is $1,050, which is lower than the Kansas City Metro median of $1,200.
According to LittleBigHomes.com, the Kansas City real estate market forecast for the 12 months ending with the 3rd Quarter of 2019 is positive. Their accuracy of the Kansas City real estate market trend prediction is 85%. Accordingly, they estimate that the probability for rising home prices in Kansas City is 85% 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.
Kansas City Housing Market Forecast 2019 – 2021
The Kansas City housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Kansas City housing market trend prediction is 83%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Kansas City is 83% 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 Kansas City Real Estate Market Forecast.
Kansas City Real Estate Market Trends
Kansas City real estate market trends show a -0% week-over-week drop in average listing price and a 5% rise in median rent per month. Trulia has 2,900 resale and new homes for sale in Kansas City, MO, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
Data by Redfin.com shows that the Kansas City housing market is somewhat competitive. Homes in Kansas City receive 1 offers on average and sell in around 47.5 days. The average sale price of a home in Kansas City was $77.2K last month, up 54.4% since last year. The average sale price per square foot in Kansas City is $69, up 17.9% since last year. Homes typically receive 1 offer. Homes in the Kansas City housing market sell for about 5% below list price and go pending in around 48 days. Hot homes for sale in Kansas City can sell for around list price and go pending in around 30 days.
Kansas City Housing Market Statistics
|Average Listing Price||$203,252 (Trulia)|
|Median Rent Per Month||$1,050|
|Median Household Income||$44,583|
|Transportation||95% people commute by car|
There are 2,349 homes for sale in Kansas City, ranging from $3.5K to $7M on Realtor.com. 252 of which were newly listed within the last week. Additionally, there are 558 Kansas City rental properties, with a range of $325 to $2.7K per month. In April 2019 the housing market in Kansas City, MO was a seller’s market, which means there were roughly more buyers than there were active homes for sale.
The median list price of homes in Kansas City, MO was $189.9K in April 2019, trending down -2.6% year-over-year. The median listing price per square foot was $108. On average, homes in Kansas City, MO sell after 52 days on the market. The trend for median days on market in Kansas City, MO is flat since last month, and flat since last year.
According to Movoto.com’s data, the median list price in Kansas City, MO is $174,000. The median list price in Kansas City was less than 1% change from May to June. Kansas City’s home resale inventories is 765, which increased 0 percent since May 2019. The median list price per square foot in Kansas City is $125. May 2019 was $123. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in June, 2019.
Kansas City 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 Kansas City, MO is $169,008, which indicates that home prices in Kansas City are near the national average for all the cities and towns in the U.S. Single family detached homes are the single most common housing type in Kansas City, accounting for 62.97% of the city’s housing units.
Other types of housing that are prevalent in Kansas City include large apartment complexes or high rise apartments ( 24.36%), duplexes, homes converted to apartments or other small apartment buildings ( 7.16%), and a few row houses and other attached homes ( 4.62%).
The most prevalent building size and type in Kansas City are three and four bedroom dwellings, chiefly found in single-family detached homes. The city has a mixture of owners and renters, with 52.95% owning and 47.05% renting.
Currently, there are 1198 single family homes for sale in Kansas City, MO on Zillow. Additionally, there are 457 single family homes for rent in Kansas City, MO. Under potential listings, there are about 22 Foreclosed and 219 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on multiple listing service (MLS).
Kansas City Foreclosures And Bank Owned Homes 2019
The percent of delinquent mortgages in Kansas City is 1.0%, which is lower than the national value of 1.1%, according to Zillow.com. There are currently 84 properties in Kansas City, KS that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 193.
|Total Foreclosures in Kansas City||127 (RealtyTrac)|
|Homes for Sale in Kansas City||148|
|Median List Price||$125,000 (0% ⇑ vs Mar 2018)|
In April 2019, the number of properties that received a foreclosure filing in Kansas City, KS was 31% lower than the previous month and 8% 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 Kansas City was $0. The median sales price of a foreclosure home in Kansas City was $0, or 0% higher than non-distressed home sales.
Kansas City Home Prices And Real Estate Appreciation 2019
Kansas City real estate appreciation rates for homes have been tracking above average for the last ten years, The cumulative appreciation rate over the ten years has been 24.18%, which ranks in the top 30% nationwide. This equates to an annual average Kansas City house appreciation rate of 2.19%.
Kansas City real estate appreciation rates are so strong in Kansas City that despite a nationwide downturn in the housing market, Kansas City real estate has continued to appreciate in value faster than most communities. In the last twelve months, Kansas City real estate appreciation rates continue to be some of the highest in America, at 9.08%, which is higher than appreciation rates in 86.85% of the cities and towns in the nation.
The above statistics on real estate appreciation in Kansas City were taken from NeighborhoodScout.com. You can visit their page for more information. Relative to Missouri, their data shows that Kansas City’s latest annual appreciation rate is higher than 90% of the other cities and towns in Missouri.
Where Should You Buy Real Estate In Kansas City?
There are 292 schools in Kansas City, MO. There are 124 elementary schools, 58 middle schools, 45 high schools and 65 private & charter schools. There are 250 neighborhoods in Kansas City. Some of the best neighborhoods in or around Kansas City, Missouri are Waldo, Raytown and The Downtown Loop.
South Plaza has a median listing price of $350K, making it the most expensive neighborhood. Blue Hills is the most affordable neighborhood, with a median listing price of $53.5K.
4 great neighborhoods in Kansas City where you buy real estate 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
Here are the 10 best neighborhoods in Kansas City to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
|1. E 19th St / Main St|
|2. Southwest Blvd / W 31st St|
|3. Brush Creek Blvd / Prospect Ave|
|4. E 18th St / Prospect Ave|
|5. E 39th St / Troost Ave|
|6. Troost Ave / E 55th St|
|7. Rockhurst U / E 53rd St|
|8. Missouri Ave / Forest Ave|
|9. Genessee St / W 9th St|
|10. E 12Th St / Charlotte St|
Should You Invest In Kansas City Real Estate In 2019?
Investing in real estate is touted as a great way to become wealthy. Is Kansas City rental property good for investment? Planning to invest in the Kansas City real estate? Many real estate investors have asked themselves if buying a property in Kansas City 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 Kansas City housing market 2019 forecast for answers on why to put resources into this sizzling market. Home prices in Kansas City are predicted to rise by 3.9% in 2020. Here are the top 10 reasons to invest in the Kansas City real estate in 2019.
1. 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.
3. 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.
4. Kansas City Real Estate Statistics
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.
5. 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.
6. 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.
7. 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..
8. Kansas City’s Favorable Weather
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.
9. 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.
10. 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.
Kansas City Real Estate Investment
Maybe you have done a bit of real estate investing in Kansas City, MO 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, Kansas City 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 Kansas Cityreal 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 Kansas City, MO. In closing, the Kansas City real estate market is expected to see an incredible amount of growth in 2019 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.
How Is Kansas City Real Estate Investment?
Buying an investment property is different from buying an owner-occupied home. Our Kansas City investment properties are designed to make money as rentals, which means you must look at it solely as an income producing entity just like any other business. These are “Turnkey Cash Flow Investment Properties” located in some of the best neighborhoods of Kansas City.
Kansas City Investment Properties For Sale ⇐ Click Here
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 is your ability to find great real estate investments.
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 in various growth markets.
We can help you succeed by minimizing risk and maximizing profitability. You can contact us for a “Free Strategy Session” by clicking here.
Other Best Places To Invest In Real Estate
Another great housing market to go for diversifying your investments is in Huntsville, AL. The Huntsville AL real estate market is a solid market with long term potential, excellent opportunity at the moment, and market niches any investor could take advantage of.
The median rent for an apartment in Huntsville is around $1000 a month. When you factor in the premium charged for the privacy and space you get when renting a home, landlords charge much higher monthly rents for detached single family homes.
When combined with the relatively low price you can pay for properties, this yields a decent return on the investment unless you pay too much at the beginning.
Another place in Alabama to go for diversifying your investments is the Birmingham housing market. Birmingham, AL remains among the most affordable markets in the nation, which bodes well for homeowners, investors and renters alike. The median home in Birmingham, Alabama is around $60,000. It is incredibly stable and steady, and investors can purchase Birmingham investment properties for $80,000 to $100,000.
Birmingham AL real estate values are going up. For example, there was a 2014 median price increase of 12.8%. The current 3-year appreciation forecast of 10.6%. Note that this is simply appreciation of the asset’s value, not return on the investment in the form of rent. Capitalization rates up to 15.0% are being seen. Median rent in the Birmingham metro area rose 3.5% between 2000 and 2015.
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.
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*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.
Housing Market Data, Trends and Statistics