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1) Kansas City has a "livability score" of 78, indicating it's a pleasant place to live
Signal strength: moderate
The livability score of 78 in Kansas City is considered good because it reflects a balance of factors that make the city attractive for residents.
One key characteristic is the affordable cost of living, which is lower than the national average, making it appealing for families and individuals looking to settle down. Additionally, Kansas City boasts a vibrant cultural scene with numerous museums, theaters, and music venues, which enhances the quality of life for its residents.
Moreover, the city has a strong job market with diverse employment opportunities in sectors like healthcare, technology, and manufacturing, which attracts a steady influx of new residents. These factors contribute to the city's livability score and indicate a stable environment for real estate investment.
If the livability score were to drop below 70, it might suggest that the city is facing challenges that could impact property values negatively.
Source: AreaVibes
2) Kansas City boasts a strong employment rate of 66.1%
Signal strength: moderate
The employment rate in Kansas City is at 66.1%, which is considered high compared to the national average in the United States.
This high employment rate indicates a strong and stable local economy, which is a positive sign for potential real estate investors. When more people are employed, they have the means to rent or purchase homes, driving demand in the housing market.
In Kansas City, the major employment sectors include healthcare, manufacturing, and professional services. Companies like Cerner Corporation and Hallmark Cards are significant employers in the area, contributing to the robust job market.
If the employment rate were to drop below 60%, it might suggest economic instability, which could make real estate investment less attractive.
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3) By 2026, the South Loop Park project in Kansas City seeks to boost community involvement and increase "real estate value."
Signal strength: moderate
The South Loop Park project in Kansas City is a major development initiative aimed at enhancing community engagement and boosting real estate value by 2026.
Located in the heart of downtown Kansas City, this project involves constructing a 5.5-acre urban park above a section of Interstate 670. It includes essential infrastructure upgrades, such as replacing aging structures along I-670, which will improve the overall transportation system in this vital downtown corridor.
The park is envisioned as a world-class destination that will serve as a catalyst for community engagement, recreation, and economic development. It will feature lush gardens, inclusive play areas, entertainment venues, and pop-up markets showcasing local businesses, all of which are expected to increase property values in the surrounding area.
With construction set to begin in early 2025 and completion of at least two blocks by June 2026, the project is strategically timed to coincide with the 2026 World Cup, potentially attracting a global audience and further enhancing the area's appeal.
4) Kansas City's population is expected to rise by 3.4% by July 2029
Signal strength: moderate
The population of Kansas City is growing, with a projected 3.4% increase by July 2029, which supports the idea that buying property there is a good investment. This growth is part of a broader trend, as Kansas City's population has shown a steady increase over the past years.
Historically, Kansas City's population surpassed the half-million mark for the first time since the 1970s, reaching 508,000 residents according to the 2020 Census Data. From 2000 to 2023, the population increased by 15.46%, with an average annual growth rate of 0.67%, peaking at 510,704 in 2023. This consistent growth indicates a strong demand for housing, which can drive property values up over time.
Suburban areas around Kansas City, such as Platte and Clay Counties, have experienced even faster growth rates, with Platte County seeing a 20% increase and Clay County a 14% increase in population from 2010 to 2020. This suburban growth reflects a nationwide trend of populations moving from rural to urban and suburban settings, further supporting the demand for real estate in the Kansas City area.
The 5-year forecast projects a 3.4% population change by July 2029, reaching a population of 2,930,251. This growth ranks 59th in population change across STI Markets, indicating a healthy and expanding market. Additionally, 10-year projections suggest a 7% increase by July 2034, reaching 3,031,395, which ranks 60th across STI Markets. These forecasts suggest continued demand for housing, making property investment in Kansas City potentially lucrative.
Sources: KCUR, Synergos Tech, Fox4KC, Neilsberg, Aterio
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5) Kansas City's median home price is significantly lower, at 46% below the "national average."
Signal strength: minimal
The fact that Kansas City still has a median home price 46% below the national average suggests that there is significant room for property value appreciation. This means that buying a home in Kansas City could be a strategic investment opportunity as the market catches up with national trends.
In Kansas City, the most expensive properties are likely to be luxury homes in areas like the Country Club Plaza, known for its upscale shopping and dining. On the other hand, the cheapest properties might be small single-family homes in neighborhoods like Ruskin Heights, which are more affordable and offer potential for growth.
Investors should consider that the current affordability of Kansas City real estate makes it an attractive market for both first-time buyers and seasoned investors. As the city continues to develop, the demand for housing is expected to rise, potentially increasing property values.
If the median home price in Kansas City were to rise to match or exceed the national average, this signal might suggest that the market is no longer undervalued, and the investment potential could be less attractive.
Source: Zillow
6) A local in Kansas City can typically afford to buy a house in about 3.6 years, which is reasonable
Signal strength: minimal
In Kansas City, it takes about 3.6 years for a local to afford a house, which is a positive indicator for potential real estate investors.
This is because the median household income is around $65,225, allowing residents to save and invest in property relatively quickly. With a median home price of approximately $235,610, homes are accessible to many, making the market attractive for buyers.
Such affordability suggests that the demand for housing is likely to remain steady, as more people can enter the market. This stability can lead to consistent property value appreciation, benefiting investors over time.
However, if it took significantly longer than 3.6 years for locals to buy a home, it might indicate a less favorable investment environment.
Source: USCensus
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So, is it worth buying property in Kansas City? Absolutely!
Kansas City offers a compelling case for real estate investment, thanks to its strong livability and economic indicators.
With a livability score of 78, the city provides a balanced lifestyle with an affordable cost of living and a vibrant cultural scene. The employment rate of 66.1% further underscores a stable economy, supported by major employers like Cerner Corporation and Hallmark Cards.
Upcoming projects like the South Loop Park are set to boost community engagement and boost property values. Additionally, a projected 3.4% population increase by 2029 indicates growing demand for housing.
With a median home price 46% below the national average, Kansas City presents a strategic investment opportunity. Locals can typically afford a home in 3.6 years, suggesting a stable market with potential for appreciation.