Real estate investment is booming in the U.S., and Kansas City Missouri, is at the center of it all. With low living costs and a fast-growing economy, this city attracts more investors than ever. Kansas City is the sixth biggest city in the Midwest, having a metropolitan population of 2.34 million. In 2025, the National Association of Realtors ranked it among the top 10 hottest real estate markets.
Known as the City of Fountains, this area remains one of the most affordable options in the U.S. With a strong employment market in a variety of areas, Kansas City is ideal for both young professionals and families. The low cost of living in a vibrant, creative region is also a big plus.
If you’re thinking about investing, here’s what you should know about Kansas City Missouri’s real estate market.
1. Population
Being the largest city in Missouri in terms of both population and size, Kansas City offers huge opportunities for real estate investment. Plus, with a population of around 2.1 million, it is Missouri’s second-biggest metropolitan region. It means that there is no shortage of people to rent from whether you purchase a house in the center of the city or the suburbs.
Not to mention, 37.5% of inhabitants have a Bachelor’s degree or above, which is around 25% greater than Missouri and 10% higher than the national average. The city also features a sizable Irish-American community. With a population that comes from a wide range of backgrounds, there are chances to rent out property in new areas.
2. Employment Rate
The employment market in the region where you intend to buy a home provides a decent idea of the economy and what local inhabitants can afford. The high employment rate of Kansas City Missouri shows a healthy and stable local economy, which is good news for prospective real estate investors. When more people are working, they have the wherewithal to rent or buy homes, which increases demand in the housing market.
According to U.S. News & World Report, Kansas City’s unemployment rate is 6.4%, which is lower than the national average. Also, the labor market is better than in similar-sized metropolitan regions. Healthcare, commerce, transportation, and manufacturing are among the top sectors in the area.
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3. Development Projects
A significant upcoming development project in Kansas City Missouri, ‘South Loop Park’ aims to increase real estate value by 2026. Located in the heart of downtown Kansas City, this project includes building a 5.5-acre urban park above a part of Interstate 670. It consists of important infrastructure changes, such as replacing old buildings along I-670, which will improve the general transportation system in this vital city area.
The park is envisioned as a world-class destination that will promote community involvement, recreation, and economic growth. It will feature beautiful gardens, inclusive play areas, entertainment places, and pop-up markets promoting local businesses. The project is planned to start in early 2025 and finish at least two blocks by June 2026.
4. Home Values
When purchasing rental homes, one of the most crucial factors to consider is the home value. As a real estate investor, you want to assess your investment and ensure that it has long-term worth. The fact that Kansas City’s median home price is still 46% lower than the national average indicates that there is plenty of space for property value appreciation.
This means that purchasing a property in Kansas City may be a wise investment opportunity when the market catches up with national trends. Plus, almost half of Kansas City’s inhabitants are renters, making it ideal for investors wishing to establish or extend their portfolio. Kansas City real estate is now affordable, making it an appealing market for both first-time buyers and experienced investors.
5. Affordability
It may surprise you but Kansas City has a “livability score” of 78, showing it’s a nice place to live. Compared to places like San Francisco, New York, or Austin, Kansas City offers considerably lower home costs and rental rates. This affordability offers a strong starting point for investors and improves the feasible choices for first-time homebuyers.
Also, Kansas City boasts a lively cultural scene with numerous museums, theaters, and music places, which improves the quality of life for its residents. In addition, the city has a strong job market with diverse employment chances in fields like healthcare, technology, and industry, which draws a steady flow of new residents. These factors add to the city’s livability number and suggest a stable setting for real estate investment.
6. Entertainment
In the Kansas City region, there are about 220 parks that comprise over 12,000 acres of natural and recreational space. There are also more than 150 miles of paths that link different locations. They include five public golf courses, several picnic shelters, eight museums, 29 lakes, and several sports fields. Overall, Kansas City offers a wealth of excellent options for families to have fun as well as expand their understanding of the arts and culture.
7. Communities
The community in which you purchase a property can affect both the type of individuals you attract and your growth possibilities. If you’re searching for investment opportunities in Kansas City Missouri, here are some of the greatest communities to explore.
- Copperleaf: Copperleaf is a peaceful neighborhood close to Liberty. It’s great for families who want a calm place to live, but still have easy access to shops and parks nearby.
- Thousand Oaks: Thousand Oaks is a growing neighborhood with big houses. It’s easy to get to nearby highways, so it’s a good spot if you want quiet living but need to get to the city quickly.
- Lake Waukomis: Lake Waukomis is a quiet place by the water, perfect for fishing and boating. It’s near the Park Hill School District and feels like a close-knit neighborhood where everyone knows each other.
- The National: The National is a golf community with homes that are easy to take care of. It’s surrounded by beautiful green spaces, and people who love golf can enjoy the nearby courses.
- Manderley: Manderley is a fancy, safe neighborhood perfect for families. It offers luxury living with lots of comfort and a friendly atmosphere, making it ideal for those seeking a high-end lifestyle.
- Tiffany Greens: Tiffany Greens is a peaceful neighborhood near a golf course. It has great views and lots of outdoor activities to enjoy, but it’s also close to stores and restaurants.
- Seven Bridges: Seven Bridges is a planned community where families can find everything they need. It’s close to shops, parks, and restaurants, offering a good mix of comfort and convenience.
- Staley Farms: Staley Farms is a luxury neighborhood built around a golf course. It has many great amenities, including a pool and tennis courts, perfect for those who enjoy being active outdoors.
- Weatherby Lake: Weatherby Lake is a quiet, lakeside area perfect for people who like fishing and boating. It’s peaceful and friendly, with easy access to city stores and restaurants.
- Woodneath Farms: Woodneath Farms is a welcoming neighborhood in Shoal Creek Valley. It’s great for families, with well-kept homes and a friendly community feel, making it perfect for suburban life.
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8. Crime and Safety
The city’s crime rate is something you’ll need to keep an eye on. While there are safe neighborhoods, it is believed that over 32,000 crimes occur each year. Your chances of becoming a victim of property or violent crime are one in sixteen. Crime is slightly less common in Kansas City Missouri as a whole, with a 1 in 205 probability of becoming a victim of violent crime.
Wrap-Up
Kansas City’s real estate market is worth investing in due to its diversified population, affordable cost of living, charming communities, and much more. You have a lot of options in this Midwestern City to begin and expand your real estate investment portfolio.
Whether you’re buying one Kansas City Missouri home or one hundred, you don’t have to do it alone. If you’re prepared to purchase your first (or next) investment property, contact the MoJo KC Real Estate Team. We are here to help you invest in the ideal real estate property at the right moment and the right price!
FAQs
Is Kansas City a nice place to live?
A: Yes, Kansas City Missouri is known for its affordable living, abundant job opportunities, and diverse activities, making it a great place to live.
What is a good salary in Kansas City?
A: The average annual salary in Kansas City is around $55,180. However, the tech and healthcare sectors offer opportunities to earn much higher salaries.
What are winters like in Kansas City?
A: Winters in Kansas City can be cold, snowy, and windy, with January temperatures averaging near freezing.
How much money do you need to live comfortably in Kansas City?
A: To live comfortably in Kansas City, you’ll need around $40,000 to $50,000 per year, depending on your lifestyle and household size.
What do I need to know before moving to Kansas City?
A: Before moving to Kansas City, consider its cold winters, affordable cost of living, and growing job market, especially in tech and healthcare.