Posted by There are so many reasons to take a good look at buying a rental investment property in Kansas City.
For starters, Kansas City was chosen as one of the Top 10 Housing Markets for buyers to consider in a recent study done in August by NextAdvisor (in partnership with TIME magazine.)
They mentioned a few interesting statistics about Kansas City including:
- Zillow Home Value Index as of September 2021: $206,024
- Home values in KC have increase 18.5% in the last 12 months
- Cost of living as a percentage of U.S. average: 86.2 (compare to San Francisco at 269.3)
- Missouri’s U.S. News & World Report affordability ranking: 7th in the nation
The next strong reason is that Kansas City is ranked as a top market for renters by WalletHub. If you go look at their list, Overland Park, Kansas is ranked #3 overall (out of 182 cities reviewed!) with a total score of 62.12 based on rental market, affordability and quality of life.
Why Kansas City?
You might have heard about the mass exodus from California… well, one of the destinations is Kansas City. Why? Kansas City has great restaurants, a strong economy spanning multiple industries, a downtown growth revival that spans 10 years and is not slowing down and more. But one of the biggest reasons is tied to cost of living statistics. People from California that were barely making ends meet can buy a significantly larger home for much less… and some people can buy their Kansas City McMansion with the equity they had in their home in California.
Another interesting thing happening in Kansas City is that we are bucking the trend of people flocking to the suburbs instead of the city center. We have growth in the first ring suburbs as well as the outlying suburbs, so there is more of a balanced growth happening in Kansas City.
Population Growth
There are about 500,000 people in Kansas City with over 2.1 million residents in the greater Kansas City metropolitan area. Growth is on pace with other major cities experiencing strong growth like Austin and Las Vegas. (Data from the Mid-America Research Council.) Over the last decade, the population of Kansas City has grown 7% and is expected to grow by another 400,000 residents by 2040.
We could keep going with data on the strong job market, the fact that Kansas City is a major transportation hub for rail, and that a new airport being built will bring more companies to Kansas City as well.
Bottom line? There is a long term growth spike in Kansas City that is attracting a lot of potential renters (especially since the housing market is so tight right now… people are choosing to rent and wait to buy in the future.) This is an excellent time to consider buying an investment property in Kansas City.
Paul is our Director of Investor Services and has been part of our team since 2010. He knows this market and has helped many investors add to their property portfolios in Kansas City. Let us help you find the right house and then manage it for you!
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