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Thinking about investing in real estate in Wichita in 2025? You're on the right track.
Wichita's real estate market is showing promising signs, with steady growth and potential for solid returns.
In this blog post, we will explore why investing in Wichita's real estate is a smart move.
We rely on reliable data and statistics from trusted sources to provide a clear picture of the market.
After a thorough analysis, we will share our own conclusions to help you make an informed decision. Enjoy the read!
How this content was produced 🔎📝
This article offers thoughtful insights and analysis based on reliable sources, but it should not be considered financial advice. We work hard to research, compile, and analyze data to give you a well-informed perspective. However, as you can guess, our analysis involves subjective choices, such as source selection and methods, and it cannot fully capture the market's complexity. Please, always do your own research, consult professionals, and make decisions based on your own judgment. Any financial risks or losses are your responsibility. Additionally, you should know that we have no affiliation with the sources mentioned, ensuring our analysis is completely impartial.
1) Wichita's "livability score" of 68 indicates a good quality of life
Signal strength: moderate
The livability score of 68 in Wichita is considered good, indicating a favorable environment for residents. This score reflects the city's affordable cost of living, which is significantly lower than the national average, making it attractive for potential homeowners and investors.
Wichita boasts a strong job market with a diverse range of industries, including aviation, healthcare, and manufacturing, which supports economic stability and growth. Additionally, the city offers excellent educational opportunities with reputable schools and universities, enhancing its appeal to families and young professionals.
Another factor contributing to Wichita's livability is its vibrant cultural scene, featuring numerous museums, theaters, and community events that enrich the quality of life. These characteristics make Wichita a desirable place to live, which in turn can drive demand for housing and increase property values over time.
However, if the livability score were to drop below 50, it might indicate underlying issues that could deter investment, such as declining infrastructure or economic challenges.
Source: AreaVibes
2) In Wichita, a local can afford a house in about 3.2 years, which is relatively quick
Signal strength: moderate
In Wichita, it would take around 3.2 years for a local to buy a house, which is relatively short compared to many other places.
This is a positive signal for potential investors because it indicates that homes are more affordable for the average resident. With a median household income of about $61,281, locals have a reasonable chance to save and purchase property.
The median home price is approximately $196,225, making it accessible for many families. This affordability suggests that there is a stable demand for housing, which is a good sign for investment.
If it took significantly longer, say over 5 years for a local to buy a house, it might indicate that the market is less favorable for investment.
Source: USCensus
We created this infographic to show how property prices in Wichita compare to other big cities in Kansas. It shows the median price as well as the price per sqft, making it easy to see which places might offer the best value. We hope you find it helpful.
3) By 2026, Wichita's "Northwest Water Facility" and "North Junction Improvements" projects are expected to boost real estate values
Signal strength: moderate
Infrastructure projects like the Northwest Water Facility and North Junction Improvements in Wichita are key drivers of potential real estate value growth by 2026.
The Northwest Water Facility, set to complete in early 2025, is a $500 million investment in Northwest Wichita. This project will provide a high-quality and reliable water supply for over 500,000 Kansans, enhancing the area's attractiveness. Improved water infrastructure often leads to increased property values as it ensures a stable and efficient water supply, making the area more desirable for residents and businesses.
Similarly, the North Junction Improvements, expected to finish in 2026, focus on enhancing road infrastructure in Northern Wichita. By improving traffic flow and safety at the interchanges of I-135, I-235, and K-96, this project could boost the appeal of nearby properties. Better road connectivity and reduced congestion make commuting easier, which is a significant factor for potential homebuyers and investors.
These infrastructure enhancements not only improve the quality of life for current residents but also attract new residents and businesses, driving demand for real estate. As demand increases, property values are likely to rise, making buying property in these areas a potentially lucrative investment.
Sources: Sedgwick County, KSDOT, Burns & McDonnell
4) Airbnb or "short-term rental" in Wichita offers a fairly appealing profit margin of 7.0%
Signal strength: moderate
The cash-on-cash return on Airbnb in Wichita is 7.0%, which is considered moderately attractive for investors. This percentage indicates that the income generated from short-term rentals is relatively healthy compared to the initial cash investment.
Wichita attracts a variety of short-term tenants, including business travelers attending conferences and meetings, as well as tourists visiting local attractions. The city is known for its aviation industry, which brings in professionals who need temporary accommodations.
Additionally, families visiting students at local universities and people attending events at the Intrust Bank Arena are common renters. These diverse groups contribute to a steady demand for short-term rentals, making it a viable market for property investment.
If the cash-on-cash return were to drop below 5.0%, it might suggest that the investment potential is less favorable, indicating a need for caution.
Source: Mashvisor
Our team designed this infographic to show how competitive the real estate market in Wichita is vs. other major cities in Kansas. It shows the percentage of sales above the list price, a key indicator of market competition.
5) A "cash-on-cash return" of 7.0% makes long-term rentals in Wichita a fairly appealing investment
Signal strength: moderate
The cash-on-cash return of 7.0% in Wichita indicates that the property investment is generating a decent return relative to the cash invested. This percentage is a sign that the property is likely to provide a steady income stream, which is crucial for investors looking for reliable returns.
In Wichita, long-term tenants often include students attending local universities and professionals working in industries like aviation and healthcare. These tenants typically seek affordable housing options, making Wichita an attractive market for rental properties.
Additionally, the city's stable job market and affordable cost of living contribute to a consistent demand for rental properties. This demand helps ensure that properties remain occupied, reducing the risk of vacancy for investors.
If the cash-on-cash return were to drop below 5.0%, it might indicate that the investment is less attractive and could signal potential issues with profitability.
Source: Mashvisor
6) Wichita's median home price is significantly lower, at 55% less than the "national average."
Signal strength: minimal
The fact that Wichita has a median home price 55% below the national average suggests that there is significant room for property value appreciation. This means that buying a home in Wichita could be a more affordable entry point into the real estate market compared to other cities, potentially leading to higher returns on investment as the market grows.
In Wichita, the most expensive properties are likely to be luxury homes located in upscale neighborhoods such as College Hill or Riverside. These areas are known for their historic charm and proximity to amenities, which can drive up property values.
On the other hand, the cheapest properties might be small single-family homes in less developed areas like South Wichita or certain parts of the North End. These areas may offer lower prices due to fewer amenities or older housing stock, making them attractive for budget-conscious investors.
If the median home price in Wichita were to rise to close to or above the national average, it might indicate that the market is becoming less of a bargain and potentially less attractive for new investors.
Source: Zillow
This infographic we have made will show you how market values have changed during the last decade in Wichita vs other major places in Kansas. Here, the percentage increase or decrease in market value will help you see long-term trends.
So, is investing in real estate in Wichita a solid option in 2025? Absolutely!
Investing in real estate in Wichita in 2025 is a promising opportunity.
Wichita's livability score of 68 highlights a good quality of life, supported by an affordable cost of living and a strong job market. These factors make it an attractive place for residents, which can drive housing demand and increase property values.
Additionally, the fact that a local can afford a house in about 3.2 years indicates that homes are accessible, suggesting a stable demand for housing. The median home price of $196,225 is significantly lower than the national average, offering a more affordable entry point for investors.
Upcoming infrastructure projects, like the Northwest Water Facility and North Junction Improvements, are expected to boost real estate values by enhancing the area's appeal. Furthermore, a cash-on-cash return of 7.0% on Airbnb properties indicates a healthy income potential from short-term rentals.
With these factors combined, investing in Wichita's real estate market in 2025 is not only viable but also potentially lucrative.
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