In 2023, the Topeka, Kansas housing market has witnessed a significant increase in home prices. The availability of homes for sale in Topeka has been consistently diminishing over the past year. Homes in Topeka are selling at a brisk pace, indicating a high demand.
Several factors have contributed to the robust performance of the Topeka housing market. The Topeka job market is thriving, instilling confidence in buyers and further fueling demand for housing.
Topeka is attracting new residents from across the country, resulting in increased demand for housing in the area. Overall, the Topeka housing market is poised to remain robust in the near future.
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Topeka, KS Housing Market Report 2023
Using data from Realtor.com®, we’ll provide you with insights into the median listing home prices, market conditions, and more. Topeka, Kansas, is a city that boasts 29 distinct neighborhoods, each offering a unique living experience. In Topeka, there are 341 homes currently available for sale, with prices ranging from $5,000 to $3.7 million. This variety in pricing caters to diverse homebuyers, including those interested in affordable multi-families and condo/townhomes.
Housing Market Trends
In September 2023, the median listing home price in Topeka stood at $210,000, representing a notable 23.5% year-over-year increase. This positive trend indicates a growing housing market in the city.
Moreover, Topeka’s sale-to-list price ratio is 105.4%, which means that, on average, homes in Topeka sold for 5.4% above their asking prices in September 2023. This trend suggests a competitive and active real estate market.
The median days on market for homes in Topeka is 21 days. While this figure reflects a slight increase compared to the previous month, it remains relatively low, indicating that homes are selling quickly in the area.
Neighborhood Highlights
Topeka comprises 29 neighborhoods, each with its unique charm and character. Here are two notable neighborhoods:
– East Topeka: This neighborhood boasts a median listing home price of $297,000, making it one of the more upscale options in the city.
– Oakland: On the other end of the spectrum, Oakland is the most affordable neighborhood, with a median listing home price of $75,000. It’s an excellent choice for those looking for more budget-friendly options.
Topeka offers a diverse range of amenities, including numerous grocery stores, cafes, restaurants, parks, and gyms. The city’s amenities cater to various interests and preferences, making it a well-rounded place to live.
Topeka Housing Market Forecast 2023 & 2024: Will it Crash?
The Topeka housing market has been experiencing notable growth, with the average home value in the region reaching $174,819. This reflects a 7.7% increase over the past year. Additionally, homes in Topeka are going pending in an impressively short time frame, averaging just around 6 days. This data is accurate as of September 30, 2023, and is indicative of the robust housing market in the city.
Topeka MSA Housing Market Forecast
The Topeka Metropolitan Statistical Area (MSA) housing market forecast for 2023 and 2024, as provided by Zillow, offers insights into the region’s expected growth. An MSA is a geographical region containing a core city and its surrounding communities that are economically and socially integrated. In the case of Topeka, this MSA encompasses the city itself and its neighboring areas. The housing market forecast for the Topeka MSA is as follows:
- October 31, 2023: Zillow predicts a growth rate of 0.3% for this date.
- December 31, 2023: The forecast indicates a growth rate of 0.8% by the end of the year.
- September 30, 2024: Looking ahead to the next year, the forecast projects a substantial growth rate of 2.8%.
This forecast suggests that the Topeka MSA’s housing market is expected to experience steady growth in the coming months, making it an attractive area for both buyers and sellers.
The Topeka MSA encompasses various counties and is an important economic and residential hub for the region. While specific county data is not provided, it generally includes Shawnee County, where Topeka is the county seat, along with surrounding areas that contribute to the economic and social dynamics of the city.
The Topeka MSA’s housing market forecast indicates a positive outlook, with a strong housing market, attractive growth rates, and continued opportunities for both residents and real estate investors.
Should You Invest in the Topeka Real Estate Market?
Population Growth and Trends
- Population growth in Topeka has shown stability over the years. While it may not experience the rapid growth seen in some major cities, this can be an advantage for real estate investors. A steady population often translates to consistent rental demand, making it an attractive choice for long-term investments.
- The city’s location within Kansas provides access to a broader market and attracts residents from the surrounding areas, contributing to population stability.
Economy and Jobs
- Topeka benefits from a diverse economy that includes government, healthcare, education, and manufacturing sectors. This economic diversity can provide a buffer against economic downturns, reducing the risk for real estate investors.
- The presence of state government offices and educational institutions such as Washburn University contributes to stable employment opportunities, a factor that supports the rental market and real estate investments.
Livability and Other Factors
- Topeka offers a high level of livability, with a range of amenities, recreational opportunities, and cultural attractions. A strong sense of community and family-friendly environments can attract and retain residents, ensuring a stable tenant pool for real estate investors.
- Low crime rates, quality healthcare, and educational facilities further enhance the city’s appeal for residents, making it an attractive place to invest in real estate.
Rental Property Market Size and Growth for Investors
- The rental property market in Topeka is significant and offers a variety of investment opportunities, from single-family homes to multi-unit apartments. The city’s stable population and economic base contribute to the consistent demand for rental properties.
- Over the years, the rental market in Topeka has shown modest but reliable growth. Investors can benefit from rental income and potential property appreciation.
Other Factors Related to Real Estate Investing
- The cost of living in Topeka is relatively low, which can be appealing to investors looking for affordable real estate opportunities. This affordability can result in higher cash flow and returns on investment.
- The city’s strategic location in the heart of Kansas provides access to major transportation routes, making it a potential logistics and distribution hub. This can drive economic growth and create additional rental demand for industrial and commercial real estate.
- Topeka’s real estate market is less volatile compared to larger metropolitan areas. While the potential for rapid appreciation might be lower, the risk of significant market crashes is also reduced, offering stability for real estate investors.
Considering these factors, investing in the Topeka real estate market can be an attractive opportunity for investors seeking a stable, reliable, and potentially lucrative market. The city’s steady population, diverse economy, and quality of life indicators make it a favorable choice for those looking to build a real estate portfolio with long-term sustainability.
References:
- https://www.zillow.com/Topeka-ks/home-values
- https://www.realtor.com/realestateandhomes-search/Topeka_KS/overview
