Kansas City Trends & Statistics 2018-2019

In this section, you’ll learn about the top factors that make Kansas City one of the strongest real estate markets today, including: affordability, cash flow, and a strong chance for equity growth. Explore Kansas City’s housing market, population, and employment trends in the tabs to learn more.

Data Source:

• https://www.zillow.com/kansas-city-metro-mo_r394735/home-values/
• https://factfinder.census.gov/
• https://www.deptofnumbers.com/employment/missouri/kansas-city/
• Real Wealth Network Affiliate Data

Property values in Kansas City are more affordable than the rest of the country today.

• In January 2018 the median price of 3 bedroom homes in Kansas City was $162,000. This is about 20% lower than the national average of $202,000.
• In the neighborhoods where RWN members invest, the median price of 3 bedroom homes was just over $100,000 in January 2018. This is 50% lower than the national average.
• This shows us, property values in the Kansas City metro are uniquely affordable, especially in the neighborhoods where RWN members are investing today.

Kansas City offers investors a strong cash flow opportunity.

• In January 2018, the median monthly rent 3 bedroom homes in Kansas City was $1,275, which is 0.79% of the purchase price of $162,000. This is 11% higher than the national purchase-to-rent ratio of 0.71%.
• In the neighborhoods where RWN members invest the median monthly rent for 3 bedroom homes was just over $1,000 in January 2018, which is slightly above 1% of the $100,000 purchase price.
• This shows us that Kansas City offers investors the opportunity to make monthly cash flow at a higher purchase-to-rent ratio than the national average.

Kansas City property values have appreciated more slowly than many other U.S. metros.

• In January 2012 median price of 3 bedroom homes in Kansas City was $127,000. This means that, in the last 6 years (Jan 2012 to Jan 2018), 3 bedroom homes in Kansas City have appreciated by about 17%. During the same period, 3 bedroom homes increased by 41% nationwide.
• This shows us that Kansas City property values have appreciated more slowly than many other U.S. metros.

Kansas City rental prices have increased more than national average since 2012.

• Between January 2012 and January 2018, the average rent for 3 bedroom homes increased by 23% versus 17% nationally.
• This shows us that Kansas City property values are rising more quickly than other U.S. metros, which means there is good opportunity for equity growth in the long term.

Kansas City’s population is growing faster than the national average.

• Since 2010 Kansas City’s population has increased by almost 6%. This higher than the 5% national average.
• This shows us that Kansas City has been growing at a slightly faster rate than the national average. According to the most recent population estimates, Kansas City is expected to grow more rapidly in the coming years. In fact, growth has already started to pick up – Between 2013 and 2015, there was an annual growth of about 15,000 a year, but that growth jumped to over 20,000 between 2015 and 2016.

The job growth in Kansas City has been slower than the national average.

• In the past year the number of jobs in Kansas City has grown by 1.67%. This is 3% lower than the U.S. annual job growth rate of 1.71%.
• Although job growth in Kansas City has been slower than the national average, the area has been growing consistently. KC has also gained national recognition as one of the nation’s top emerging technology and entrepreneurial hubs. In fact, a recent report released by Cushman & Wakefield (Tech Cities 1.0 report by Cushman & Wakefield – 6/8/2017) ranked Kansas City in the top 25 U.S. cities for technology. The cities were determined by factors such as access to talent, investment capital and growth opportunity.

Kansas City is Still Affordable

• In the neighborhoods where RWN members invest, the median price of 3 bedroom homes was just over $100,000 in January 2018. This is 50% lower than the national average.
• This shows us that property values in the Kansas City metro are uniquely affordable, especially in the neighborhoods where RWN members are investing today.

Kansas City is Cash Flowing

• In the neighborhoods where RWN members invest, the median monthly rent for 3 bedroom homes was just over $1,000 in January 2018, which is slightly above 1% of the $100,000 purchase price.
• This shows us that Kansas City offers investors the opportunity to make monthly cash flow at a higher purchase-to-rent ratio than the national average.

Kansas City is Growing

• Since 2010, Kansas City’s population has increased by almost 6%. This is higher than the 5% national average.
• This shows us that Kansas City has been growing at a slightly faster rate than the national average.
• In the past year, the number of jobs in Kansas City has grown by 1.67%. This is 3% lower than the U.S. annual job growth rate of 1.71%.
• Although job growth in Kansas City has been slower than the national average, the area has been growing consistently. KC has also gained national recognition as one of the nation’s top emerging technology and entrepreneurial hubs. In fact, a recent report released by Cushman & Wakefield (Tech Cities 1.0 report by Cushman & Wakefield – 6/8/2017) ranked Kansas City in the top 25 U.S. cities for technology. The cities were determined by factors such as access to talent, investment capital and growth opportunity.

Kansas City is Appreciating

• In the last 6 years (Jan 2012 to Jan 2018), 3 bedroom homes in Kansas City have appreciated by about 17%. During the same period, 3 bedroom homes increased by 41% nationwide.
• Between January 2012 and January 2018, the average rent for 3 bedroom homes increased by 23% versus 17% nationally.
• This shows us that Kansas City home values are rising more slowly than other U.S. metros, but property values are rising more quickly.