Kansas City’s rising profile has been documented all year in national outlets like Time, The Wall Street Journal and The New York Times, and now the housing market is starting to reflect it.
U.S. News & World Report’s newest findings on the hottest housing markets in the United States show that the Kansas City area is tied with Austin for the top spot. On U.S. News’ housing market index, which is calculated by looking at a city’s housing demand, housing supply and financial health, Kansas City received a 72.8 out of 100. The data comes from the month of June.
Three primary factors led to Kansas City jumping to the top spot: a sharp increase in demand, higher affordability compared to the rest of the U.S. and more supply, said Patrick Duffy, senior real estate economist for U.S. News.
Kansas City received these scores out of 100 in the three categories:
Housing demand: 79.9, up from 60.7 in December. The demand category looks at data on employment, unemployment, household growth, consumer sentiment, median home sales prices and rental prices.
Housing supply: 46.2, up from 43.3 in December. The supply category compiles data on housing supply, rental vacancy rates, construction costs, construction jobs, builder sentiment and architectural billings.
Financial supply: 92.5, up from 91.1 in December. The financial category analyzes government data on housing supply, rental vacancy rates, construction costs, construction jobs, builder sentiment and architectural billings.
“What these hottest markets seem to have in common are big city amenities and unique cultures, without the high housing costs of (metro areas) closer to the West and East coasts,” Duffy said.
What led to Kansas City becoming the top housing market in the United States?
The city’s score of 72.8 is led by an increase in jobs compared to June 2023. U.S. News found that the Kansas City area gained 15,000 jobs over the year for a growth rate of around 1.3%.
Kansas City received an overall score of 65 in December 2023, and Duffy said it was interesting to see the city leapfrog other top housing markets like Denver and Charlotte in the June data. The city’s score is 5.1 points higher than it was at this time last year.
The median sales price in the Kansas City area rose 5.7% over the year to $350,000. This compares to a national increase of 4.2%, to about $443,000, or about 21% higher. Duffy said it’s still tough for people to afford houses, but it’s much easier in Kansas City compared to the rest of the nation.
For renters, the median rent in Kansas City rose 3.4% over the year to $1,482 per month. The city’s median price was still 28% lower than the national level of $2,054.
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Publish date : 2024-08-30 02:00:00
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