Kansas City Investment Property for Sale - 2023 Rental Home Appreciation
Kansas City is the largest city in Missouri, extending into Kansas state. Known for its world-famous Kansas City-style barbeque, jazz music, and fountains, the Kansas City area is also home to world-class museums, including the only US museum dedicated exclusively to World War 1. In addition, its vibrant culture has made this area appealing to visitors and its residents.
Jackson County is the second most populated county in Missouri. With its steady rise in population, home values for a single-family home are still averaging $135/sqft. Population growth has created limited inventory in the housing market. This could provide lucrative real estate investment opportunities in the greater Kansas City area.
Kansas City's Attractive Housing Market
Latest trends show that Kansas City residents tend to be renters over homeowners because of the housing shortage. Nearly half the population resides in multi-family homes and other rental properties. In addition, the cost of living in Kansas City is more than 90% lower than in New York or San Francisco, making it an attractive location for real estate investors looking to get into the rental market.
Here are some popular neighborhoods in the Kansas City area to consider:
- Lenexa: This beautiful city is located on the Missouri-Kansas border. Lenexa is known as the “City of Festivals” for its annual festive events, attracting visitors from near and far.
- Shawnee: This vibrant Kansas City suburb, known for its diverse history and culture, has some of the highest-rated school districts in Kansas.
- Lee’s Summit: As the sixth-largest city in the Kansas City metro area, Lee’s Summit is a popular vacation destination for those wanting a respite from big city life. Highlights include the Lee’s Summit Symphony, waterfront parks, and an affluent historic district.
- Overland Park: Previously ranked 7th in the country as “The Best Place to Live,” Overland Park is the largest suburb in the Kansas City area. This region is home to numerous corporations like HCA Midwest and AT&T.
- Brookside: This highly sought-after collection of neighborhoods features beautiful tree-lined streets and historic homes. Brookside is full of upscale restaurants and quaint eateries.
Other areas around Kansas City to consider:
- Raytown - a quiet neighborhood ten minutes from downtown Kansas City
- River Market - a diverse community in downtown Kansas City
- Crossroads - a mostly rented, upscale neighborhood
Rental Home Appreciation in Kansas City
Zillow forecasts that home prices will continue to rise, leaving the Kansas City real estate market with an inventory shortage.
The median rent for a Kansas City home was nearing $1,500 per month at the end of 2021, with projected increases of more than 15% annually.
Kansas City has many attractions that draw in visitors, including the impressive KC Fountain Tour, four professional sports teams, and jazz venues.
Economic Growth in Kansas City
With the employment rate under four percent, reports have shown that the production and government sectors are predicted to increase their workforce numbers significantly.
With Meta making Kansas City their new technology hub soon, the construction of its one million sqft facility is bringing $800 million to the local economy and creating over 1000 new jobs.
While the percentage of homeowners and renters is reasonably even, recent economic growth has created a realty shortage that property investors can help alleviate.
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