A recent report from U.S. News and World Report highlights the surge of Kansas City as a top housing market for renters.
A Kansas City house for sale pictured on Aug. 9, 2024.(KCTV5/Alex Love)
KANSAS CITY, Mo. (KCTV) – A new report has revealed that while Kansas City has shot up to one of the hottest housing markets in the nation, for now, it remains a renter’s market.
U.S. News and World Report released its Hottest U.S. Housing Markets report on Thursday, Aug. 29, and Kansas City is now one of the markets to watch. The City of Fountains was among the most improved markets between Dec. 2023 and June 2024.
The report noted that while remote work remains one of the hottest job options, homebuyers have turned back to the basics of supply, demand and financial consideration. Big-city amenities, unique cultures and housing costs lower than the coasts, Kansas City and Austin have tied for the hottest market.
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While tied, U.S. News and World Report said the greater Kansas City area surged to the top of the June rankings thanks to a sharp increase in demand and higher affordability relative to the rest of the nation. The overall market rose 5.1 points through June as more than 15,000 jobs were gained. Median sales prices in the city rose to $350,000 compared to a national average of $443,000.
“In the lower price ranges it’s very difficult, and buyers keep getting shut out due to too much competition,” said Cindy Cunningham, a broker associate with BHG Kansas City Homes and current president of the Kansas City Regional Association of Realtors. “I’ve been in this business for 27 years, and there’s not much for sale under $250,000 or $300,000.”
Eli Medina, of ReeceNichols Real Estate said the most competitive spot for housing is in Johnson County, just over the Kansas state line. Meanwhile, the metro area on the Missouri side has seen activity anywhere from south of the plaza to downtown and north to the river.
However, local realtors expect some turbulence ahead with changes to the industry as a result of new rules. Cunningham believes the change will make it harder for lower-end buyers.
“This could be a great way to revamp organically the real estate industry, as it will weed out agents who can’t adapt or prove their worth,” Medina said. “I’ve been in the business over 12 years, and with these new regulations, by this time next year, we might see a 30% decrease in licensed realtors. Overnight, it feels like it got more formal.”
For those who rent, the report noted that while median rent in the metro rose to $1,482 per month, it is still lower than the national average of $2,054. With declining vacancy rates, for now, Kansas City remains more of a renter’s market.
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