Kansas City is the sixth-biggest city in the Midwest, with a population of 2.34 million. This metropolitan city is located on the Missouri-Kansas border. It was also named the hottest housing market in the U.S. last year because of growing home demand, supply, and affordability trends.
And this year promises to be a year of surprises for Kansas City house buyers. Since more homes will be available to buy, housing prices won’t increase much. Mortgage rates may fall, to the relief of both KC house buyers and sellers. So, if you’re a real estate agent, seller, or house buyer searching for a new market, look into Kansas City housing trends. Here are six noteworthy market trends that the city is now experiencing.
Top Trends in the Kansas City Housing Market
1. Prices May Go Up, But Not Much
When it comes to home prices, we mainly talk about supply and demand. When mortgage rates fell to about 6.25% or less in 2024, sellers quickly made offers. At higher rates, demand dropped. As rates went up, homes stayed on the market longer. Surprisingly, there were 28% more houses for sale than the same last year. Higher availability helps KC house buyers because they have more options to choose from.
Right now, demand for houses still exceeds the supply, although the gap isn’t as serious as it used to be. This indicates home prices will keep growing in 2025. But probably not by a ton, especially if mortgage rates stay over 6.25%. So, it’s a perfect time to invest in Kansas City Missouri.
2. More Demand For Single-Family Construction
After two straight years of reductions, single-family building starts in Kansas City are on the rise. They’re predicted to conclude 2024 up 3.2% from last year at 4.4 million and then level out in 2025, concluding the year up 0.7% at 4.5 million.
Strong employment and population growth are two main factors in the rising demand for single-family houses in Kansas City. The typical home sale price in Kansas is around $282,100, making it a reasonable investment compared to other states. KC house buyers can expect a steady renting market with the potential for long-term gains.
3. Emerging Neighborhoods For Investment
Investors looking for unlimited growth possibilities might consider developing neighborhoods in Kansas City. These areas often offer the golden chance for high returns on investment due to lower purchase prices and greater demand.
Kansas ranks as the 7th most affordable state for buyers, based on home prices compared to income. With new listings and growing areas, certain neighborhoods may show higher home values over time. KC house buyers should keep an eye on economic trends and new housing projects to make smart choices.
4. Upcoming Infrastructure Projects
Kansas City is seeing big infrastructure projects that promise to improve real estate value. The growth and upgrade of highways offer better connectivity, making places more accessible. For example, major work on the I-70 corridor can lower travel times and boost economic growth.
In addition, changes to public transport in urban places draw both residents and companies. This raises the desire for residential properties and business spaces. Investors should focus on areas benefiting from these projects for long-term growth potential.
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5. Home Appreciation Rate Cooling Down
With more and more inventory entering the market, Kansas City’s housing appreciation rate has dropped from double-digit highs in 2021-2022 to 7.4% in 2023, 6.0% in 2024, and 5.6% in 2025. Long-term increases in house values will likely continue in the United States. This means house buyers and those looking for cheap homes may find relief from the current market slump.
6. Multi-Family Units Seem Profitable
Multi-family homes present a favorable choice for those interested in scaling their investments. These sites can offer better cash flow and economies of scale. In Kansas, multi-family homes, especially in major areas like Kansas City, tend to have good occupancy rates due to the demand for cheap housing.
Investors can gain from the ability to spread risk across multiple renters, lowering the impact of vacancies. The Kansas real estate market shows profit potential. With rising demand for renting homes, multi-family flats are a smart choice for maximizing returns.
Pro Tips for Buyers and Sellers
Here are some professional ideas to boost your chances for an ideal outcome in this tight property market.
Tips for Buying in Today’s Real Estate Market
Here are some professional suggestions for hopeful KC house buyers:
- Know your budget. It’s important to know how much you can afford before you start house hunting. Factor in not only your down payment but also monthly payments, property taxes, and insurance.
- Be flexible regarding home size and location. Make sure you have enough money to either buy a small home in your dream neighborhood or a bigger one. The key is knowing what you want and being flexible. This way, you’ll be ready to move quickly when the right property comes up.
- Keep an eye on the market where you plan to buy. Determine the area’s available goods and pricing levels. Also, pay attention to how rapidly properties sell. Not only will you be tuned in when something wonderful enters the market, but you may feel more confident moving forward with acquiring a well-priced house. A real estate agent can help with this.
- Don’t be frustrated. Purchasing a house is one of the major financial choices you’ll ever make. You will succeed if you enter the market with assurance, well-informed, and realistic expectations. Don’t let the frenzy of the market influence you to buy something that’s not in your budget or not suited for your lifestyle.
Tips for Buying in the Current Real Estate Market
For sellers, here are some professional tips:
- Look at local similar home prices. The most recent pricing information on similar properties selling in their market is essential for sellers. Analyze the competition in the market and set a competitive price for the house. Additionally, be aware that there are some price points where it’s a buyer’s market, so be ready to make some compromises.
- Make sure your house is in excellent condition. For homes to compete and have a strong “online curb appeal,” they must be in excellent shape. One of the key things that buyers look for in a property is a well-kept front yard.
- Consult a real estate agent in your area. You can get a fantastic price and receive great value from a real estate team like MoJo KC Real Estate which has access to major real estate sites and a strong local marketing presence.
- Don’t ignore problems that need to be addressed. Make any necessary renovations or repairs to the house to get it ready. Removing these kinda will help you to focus on the home’s main features.
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The Bottom Line
Kansas City’s housing market is changing, and there are a few things every house buyer and seller should know. More new homes are being built, which gives buyers more choices. The city is also improving roads and public transportation, making some areas more appealing to live in. While home prices have slowed a bit, KC house buyers now have a great opportunity to invest in real estate.
If you’re thinking about buying or selling a home, it’s important to stay informed about these changes. For help and advice on navigating the Kansas City housing market, contact MoJo KC Real Estate today! We’re here to guide you every step of the way.
Frequently Asked Questions
Is $50,000 enough to buy a house?
It depends on the location. In some areas, $50,000 may be enough for a small home, but in more expensive areas, it may only cover a down payment. Check local housing prices and talk to a lender for more details.
How do I find a buyer for my house?
List your home on real estate websites, hold open houses, and use social media. For a quicker sale, you can also work with a real estate agent or sell directly to KC house buyers.
What credit score is needed to buy a house in Kansas?
A conventional loan usually requires a score of at least 620, but depending on the down payment, you can get an FHA loan with a score as low as 580.
How do I sell my house without a realtor in Kansas?
List your home on MLS through a flat-fee service, handle showings and negotiations, and manage paperwork yourself. Alternatively, sell to an investor for a faster, simpler sale.