2024 Housing Market Overview for Real Estate Investors
Kansas City Real Estate Market 2024
Get insights about the 2024 Kansas City real estate market to determine if it’s the best location for your next single-family or multi-family home investment.
Kansas City Real Estate Market Trends and Statistics for Real Estate Investors 2024
The Kansas City metro area is one of the largest in Kansas and Missouri. It includes neighboring metro areas like Lawrence (KS), St. Joseph (MO), and Topeka, KS. It extends to Kansas towns like Atchison, Ottawa and the Missouri towns of Chillicothe and Warrensburg. Kansas City is a central transportation hub with solid finance and information technology (IT) sectors.
Many international companies call Kansas City home, including AMC Entertainment, Bayer CropScience, Boehringer Ingelheim, CEVA Animal Health, Clarios, Elanco Animal Health, Huhtamaki Americas, Merck Animal Health, Nestle Purina Petcare Global and VMLY&R. The area also boasts diverse educational institutions like the University of Kansas, the University of Missouri, and Kansas State University, which offer degrees in various fields.
Recent openings and expansions in the metro area span various sectors, including temperature-controlled warehousing, biotechnology, energy solutions, digital health, aerospace systems, precision manufacturing, industrial battery assembly, and food distribution. Companies like Google (data center), Honeywell (aerospace systems), Walmart (beef packaging and distribution center), and Panasonic (EV battery manufacturing) have recently opened or expanded operations in the area.
The Kansas City metro area housing market consistently ranks among the most affordable for metro areas with populations greater than one million. But home prices are on the upswing. Redfin reports that in April 2024, the median home sale price in Kansas City reached $285,000, a 14% increase from the previous year. The market is competitive, with homes receiving an average of four offers and selling in about 22 days. Despite rising prices, homes in Kansas City remain relatively affordable compared to the national average, making it an attractive market for real estate investors in 2024.
Data Sources:
- www.census.gov
- www.deptofnumbers.com
- www.zillow.com
- RealWealth Property Team Data
- 25 Best Places to Buy Rental Property in 2024
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2024 Kansas City Housing Market Trends
Due to low inventory, home prices in Kansas City are up 14% from last year. Below, we’ll look at median home values and rent trends. This data will help us understand affordability and equity growth opportunities in the 2024 Kansas City real estate market.
Kansas City home values are more affordable than the national average.
Median Home Value
The data in this chart is based on the average single family home in Kansas City and the United States as of January 2024.
Kansas City’s average single-family home price is $286,747, 17% below the national average. In RealWealth’s investment areas, the average home price is $267,500. RealWealth invests in quality A and B neighborhoods in Kansas City, focusing on single-family homes, duplexes, and quad-plexes.
These properties typically cost between $155,000 and $185,000 and offer good returns. Kansas City’s housing market is defined by low supply (about 1.8 months) and high demand. This scarcity of homes will likely continue to drive prices up in the area.
Kansas City rents are also more affordable than other U.S. cities.
Median Monthly Rent
The data in this chart is based on the average single family home in Kansas City and the United States as of January 2024.
The average monthly rent in the Kansas City metro area is $1,405, 29% below the national average. Kansas City’s 0.49% rent-to-value ratio is lower than the national average.
In RealWealth neighborhoods, the average rent is higher at $1,895, yielding a better 0.71% rent-to-value ratio. Kansas City metro also has a price-to-rent ratio of 17, indicating that renting is slightly more affordable than buying here. Investors seeking cash flow in Kansas City should conduct thorough due diligence or seek expert advice.
However, rent growth has been strong in the area. Missouri, including Kansas City, experienced some of the fastest U.S. rent increases, according to Rent.com’s February 2024 report. The state’s median rent rose over 13% year-over-year to $1,209, and Kansas City’s median rent rose 7% from last year to $1,644.
Kansas City home values are appreciating at a steady rate.
Median Home Value (2014-2024)
91%
7%
The Kansas City housing market has seen steady appreciation in the last eight years. The average home price in the metro area has increased by 88.97%, at an annual rate of 9.52%. This appreciation rate is 5.88% higher than the national average home appreciation rate of 84%. The area has seen a 95.50% cumulative appreciation rate over the last ten years, according to NeighborhoodScout’s data. The average price of Kansas City real estate grew by 13.7% between 2021 and 2022, from $249,243 to $283,384.73.
Kansas City rents are also rising consistently.
Median Monthly Rent (2014-2024)
55%
5%
Kansas City metro area rents have appreciated 55% over the last 10 years, averaging 5% annually. This growth rate surpasses the national average by 33%. Zillow’s data shows that Kansas City’s median rent held steady at $1,350 from May to June 2024. However, the median rent has increased by $35 compared to last year. Kansas City’s median rent of $1,350 is currently 37% below the national average of $2,139.
Kansas City Population Trends
Population growth is one of the most promising signs of a strong real estate market. In this section, we’ll discuss what’s happening in the Kansas City metro in that area.
Kansas City's population has been growing quickly
Population Growth
10%
26%
From 2010 to 2022, Kansas City’s population grew by 9.74%, outpacing the national average rate by 26%. Over the last 12 years, the Kansas City metro area has grown by 0.93% annually on average.
The metro area added over 12,500 residents in the year ending July 1, 2023, the largest increase among metros in Kansas and Missouri. The metro area’s population reached 2,221,343 in 2023, making it the 31st largest U.S. metro. While not the fastest growing in the two states, Kansas City’s 0.57% growth rate exceeds the national average of 0.49% and was higher than previous years – 0.25% from 2021 to 2022 and 0.37% from 2020 to 2021.
Kansas City Employment Trends
Another sign of a good place to invest in real estate is a strong economy. In this section, we’ll discuss what’s happening in with jobs in Kansas City.
Kansas City is slow and steady.
Job Growth
9,000
1%
The Kansas City metro area’s job growth could be faster. The area added only 9,000 jobs (0.8%) from November 2022 to November 2023, significantly lagging behind the national average. Despite this, Kansas City remains a crucial hub for transportation, tech, and manufacturing, boasting nearly 4,000 tech companies and ranking among the top 15 largest metro areas for tech jobs per capita. The area is also home to the Animal Health Corridor, contributing to 56% of global animal health, diagnostics, and pet food sales.
Major employers like Cerner Corp, HCA Midwest Health, Saint Luke’s Health System, Ford Motor Company, and General Motors bolster the region’s economy. Kansas City is emerging as an EV hub, with Panasonic and Tesla planning battery plants that will employ over 4,000 people. Ford is also expanding its presence and investing over $1 billion into its local facilities.
Driven by the construction and professional services sectors, Kansas Cit’s projected job growth rate is expected to rebound by 1.0% in 2024. However, this rate still trails the stronger 2.5% to 3.5% rates seen in mid-2022.
Why Investors Should Consider Buying Investment Property in Kansas City
Considering the above information and further research, let’s see what makes the Kansas City metro area one of the best places to buy real estate in 2024.
1. Affordable property prices
Kansas City, Missouri, boasts a cost of living 2.5% below the national average, making it one of the Midwest’s most affordable cities. Groceries, healthcare, utilities, and housing all cost less in Kansas City.
Kansas City ranks seventh for affordable working-class single-family homes. A survey of 40 large cities found that 82% percent of two-to-four-bedroom homes in Kansas City were affordable.
The average home price in the Kansas City metro area is $286,747, 17% below the national average. RealWealth investors in Kansas City typically purchase properties for $155,000 to $185,000, earning high returns in quality A and B areas.
Kansas City’s rental market is also strong, with one-, two-, and three-bedroom apartments renting for less than the national average.
2. Strong rental market
RentCafe ranked Kansas City as the second most popular rental market in 2024, with a 63% surge in apartment page views year-over-year. Kansas City was the top choice for renters in May and June 2023, and the city remained in the top 10 for seven straight months in 2023. Ongoing urban development and recent upgrades to entertainment districts attract diverse renters to Kansas City, including young professionals and families.
3. Growing tech industry
Google Fiber’s 2012 launch in Kansas City sparked a tech boom, attracting startups and establishing the city as an innovation hub. The city’s tech sector is growing faster than the national average, contributing nearly 10% to the regional economy. Kansas City ranks sixth among large cities for tech momentum, with the metro area being recognized as a “rising star” for tech jobs.
A strong entrepreneurial spirit thrives in Kansas City, with several organizations supporting startups through grants, pitching competitions, and partnerships. This ecosystem has nurtured successes like Blooom, ZOLOZ, and Mylo.
The city hosts Cerner, the healthcare IT leader acquired by Oracle for $28 billion in 2022. Cerner recently opened its $4 billion Innovation Campus in the city. Google is also investing $1 billion in a data center in Kansas City.
4. Strategic location
Kansas City, often called the “Heart of America,” is centrally located within the contiguous United States. This strategic positioning makes it ideal for nationwide distribution and logistics operations.
The city’s central location provides easy access to major U.S. markets. This proximity benefits businesses seeking broader reach and an expanded customer base. A robust transportation infrastructure, including major highways, railroads, and the Kansas City International Airport, further strengthens the city’s strategic location advantage.
5. High quality of life
Kansas City boasts a very high quality of life, with a Numbeo Index of 188. While housing prices are rising, the overall cost of living in Kansas City remains lower than in cities like Chicago. The city’s vibrant cultural scene includes renowned institutions like the Nelson-Atkins Museum of Art, the Kemper Museum of Contemporary Art, and the Kauffman Center for the Performing Arts.
Sports fans will enjoy watching the Royals (baseball), the Chiefs (football), and the Current and Sporting (soccer) teams. Families will also find plenty to do at the Legoland Discovery Center, Sea Life Aquarium, and the Kansas City Zoo & Aquarium.
Newsworthy Projects and Building Developments in Kansas City
As an investor, planned developments can help you estimate how the value of your investment properties might change in the future. Here are some notable projects in the Kansas City real estate market.
1. The South Loop Project
The South Loop Project aims to connect the Central Business District with the Crossroads Arts District. A joint collaboration between Port KC, the Downtown Council, and the city of Kansas City, it will build a sustainable urban park on the four-block stretch of I-670. The park's additions include accessible play areas, outdoor event venues, and multimodal transport options. The project will reduce noise and pollution, mitigate the “heat island effect,” and provide a public green space in downtown Kansas City. While the project's funding is still far from the $217.2 million target, there has been some traction. The project secured $28.6 million in state funding and $25 million in private donations, totaling $53.6 million. However, financial constraints necessitate a phased approach to construction, which is slated to begin in spring 2025. The South Loop project is expected to be fully complete by 2030.
2. The new Kansas City Royals Ballpark
The Kansas City Royals' new stadium will replace the former Kansas City Star printing press in the Crossroads district. The 18-acre development includes a 34,000-seat stadium, team offices, a hotel, residences and entertainment venues. The project also includes renovations to Grand Boulevard and a bridge connecting to the South Loop Link project. The Royals will invest $1 billion in private funds, bringing the total project cost to $2 billion, and making it the largest public-private partnership in Jackson County. The team aims to open the stadium by 2028. Photo credit: Populous
3. Berkley Riverfront development
The 45-acre Berkley Riverfront development, situated along the Missouri River near downtown Kansas City and the City Market, aims to create a world-class urban village. This village will combine offices, residential spaces, retail areas, and cultural amenities to enhance urban living. Strategically located between the future KC Current Stadium and Origin Hotel, the development will foster a vibrant community and improve urban connectivity. Berkley Riverfront Drive and Berkley Parkway border the development, providing easy access. The $800 million project will last 10 years. The first phase is set to begin by the end of 2024, and it is targeted for completion before the 2026 FIFA World Cup. One of the new projects within the larger development is Union, a five-acre mixed-use complex with 410 luxury apartments, 400 parking stalls, and 12,000 square feet of retail space. Residents can enjoy amenities like a pool, sky bar, gaming lounge, fitness club, yoga and Pilates studios, pet wash, and bicycle bar. Photo credit: South Loop Project
4. West Bottoms redevelopment
SomeraRoad, a real estate investment firm, is revitalizing the West Bottoms north of 12th Street. The City Council approved their $500 million plan to create 1,250 new apartments, retail spaces, and public spaces over the next ten years. The goal is to transform the historic area into a vibrant place to live, work, and have fun. The project's first phase began with demolishing the Weld Wheel Building (933 Mulberry St.), supported by a $2 million pledge from KCMO leaders, to make way for a five-story apartment building. Other buildings, like the Moline Plow Company Building and the Avery "Poe" Building, will be renovated into a mixed-use apartment complex and a 50-room hotel, respectively. The Rock Island Bridge project is also underway, supported by a $4 million state grant. It is expected to open next year. The second phase of West Bottom Flats will add 94 new apartments to the existing 265. The Midwest Building will become 77 affordable apartments and retail spaces, supported by tax incentives. Phase II also includes the construction of The Yards II, a four-story complex with 224 units along the Kansas River. Photo credit: Someraroad, Inc.
5. Barney Allis Plaza reconstruction
Barney Allis Plaza, in the center of downtown Kansas City, is currently undergoing a revitalization. Close to many of downtown Kansas City’s main attractions—the Theater district, South Loop Project, Power & Light District, and Kauffman Stadium—Barney Allis Plaza will be converted into a vibrant, arts-centered green space and convention center that will attract both locals and tourists. The redevelopment plan includes rebuilding the underground garage and creating a new public park above it. The city has approved $119.8 million to fund the project, which involves demolishing, redesigning and reconstructing. Construction is already underway, and is expected to be completed before the 2026 FIFA World Cup.
Best Places to Buy Investment Property in the Kansas City Metro Area & Surrounding Areas
If you’re considering getting into the Kansas City real estate market in 2024, here are some of the best places to find profitable investment properties in Kansas City and around the metro area right now.
1. Lee’s Summit, Missouri
Thanks to its low cost of living, Topeka offers investors affordable real estate opportunities. Its central location makes it a potential logistics hub. Homes in Topeka sell for an average of $183,000, considerably lower than other areas. Meanwhile, home values have grown by 6.9%, and the median rent is $825, reflecting a $58 increase from the previous year, according to Zillow. Topeka's rich history, which includes the landmark Brown vs Board of Education Supreme Court Case, cultural attractions like the arts district, Washburn University, and golf courses, attracts visitors and renters. Photo credit: Jonathan Goede/KSHB
2. Raytown, Missouri
Raytown boasts a diverse economy with major employers in education, retail, healthcare, and more. Top employers include Raytown Quality Schools, Walmart, Hy-Vee, and USA 800. As of the 2020 census, Raytown's population was 30,012. The racial makeup is 53.34% white, 32.68% black or African-American, and other minorities. The median household income is $55,940, and the median family income is $71,461. Raytown offers relatively affordable housing compared to other areas in the Kansas City metro. The average home price is $201,326, and the average monthly rent is $1,385, making it appealing to investors. With a history dating back to the 1850s, Raytown houses several historic sites, including the Rice-Tremonti House and Jesse Barnes farm, listed on the National Register of Historic Places. The city hosts popular events like Raytown Round-Up Days and the Barbecue Cook-Off, attracting many visitors.
3. Independence, Missouri
Independence, the 5th largest city in Missouri, had a 2020 population of 123,011. Known as the "Queen City of the Trails," it was a crucial starting point for westward pioneers and the hometown of President Harry S. Truman. Tourists flock to the city for its historical landmarks, including the Harry S. Truman National Historic Site and the Truman Presidential Library and Museum. The city boasts a diverse economy with solid healthcare, education, and manufacturing industries. Major employers include the Independence School District, Northrop Grumman Innovation Systems, and Centerpoint Medical Center. Independence has invested heavily in infrastructure, including the development of Interstate 70 and Interstate 470, providing easy access to Kansas City and other areas. The Kansas City International Airport, just 35 minutes away, further enhances the city's appeal for businesses, renters, and real estate investors. Photo credit: Visit the USA
4. Topeka, Kansas
Thanks to its low cost of living, Topeka offers investors affordable real estate opportunities. Its central location makes it a potential logistics hub. Homes in Topeka sell for an average of $183,000, considerably lower than other areas. Meanwhile, home values have grown by 6.9%, and the median rent is $825, reflecting a $58 increase from the previous year, according to Zillow. Topeka's rich history, which includes the landmark Brown vs Board of Education Supreme Court Case, cultural attractions like the arts district, Washburn University, and golf courses, attracts visitors and renters. Photo credit: Visit Topeka
5. South Kansas City, Missouri
South Kansas is one of the fastest-growing areas within the Kansas City metro area. Millions of investment dollars are pouring into the region, attracting new and existing businesses. Conveniently located near Midtown, Raymore, and Lee's Summit, South Kansas City offers easy access to the rest of the metro area. Known for its peaceful atmosphere, parks, and green spaces, it's ideal for families and those seeking a quieter lifestyle. South Kansas City boasts various neighborhoods, including Brookside, Waldo, Loma Vista, Martin City, Red Bridge, Highview Estates, Oakwood, Hillcrest, and Longview, each with unique features and investment opportunities. Universities like UMKC and Rockhurst University contribute to its vibrant community, offering a variety of undergraduate and graduate programs. A thriving logistics sector makes South Kansas City attractive to companies like Americold Realty Trust, which is investing $127 million in a new cold storage facility in the area, creating 187 new jobs.
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