What Makes Kansas City a Great Place to Invest
The real estate market in Kansas City is crazy right now. CRAZY. Homes are being sold in record time, often before they even officially hit the market. While many of these purchases are made by people who plan on living in the home themselves, a significant portion is also being turned over by investors who are recognizing the primo conditions in the local market. Renters are flocking to the area, too, looking to cash in on the area’s low cost of living and the huge selection of reasonably priced, high quality rental homes.
So what’s behind all of this anyway? What makes KC such a desirable area for investors? Here are just a few of the reasons:
- Local industries are booming. One of the biggest factors that makes Kansas City such an attractive option for investors is the huge growth in industry the city has experienced in the last couple of years. Where other major metropolitan areas have struggled, KC has flourished. Technology is a sector that immediately comes to mind, as shown by Google, Sprint, and other major tech companies’ interest in the city. Other industries, such as engineering and pharmaceuticals, also call this part of the Midwest home.
- Housing is insanely affordable. It’s well-known that the Midwest is one of the most affordable places to live in the country, and since KC is smack dab in the middle of this region, it’s cost-effectiveness is a major draw. Right now, the median price of a single-family home is around $108,000. With a 30-year conventional mortgage at an interest rate of around 4%, the monthly payment on a property at this price is only about $500. Considering you can rent the property for quite a lot more than that (the rental rate would depend on several factors, of course), it’s no wonder investors are snatching properties up at such a fast rate.
- Millennials love KC. Even though some people like to mock millennials, there’s no denying that folks in this age group are a force to be reckoned with. People in their 20s currently make up the largest share of the renting population, and the millennial bracket overall (those aged 18-34) largely prefers renting a home over buying one. And guess what? Millennials really like Kansas City. In fact, KC has been described by some as a millennial boom town, as this younger crowd continues to make their way to the city in droves.
- The city is growing. KC has been in a growth trend for awhile now, in just about every way. Population, employment, the economy…you name it, and it’s expanding. Much of this can be attributed to the growth in industry and the affordable housing mentioned previously; where there are job opportunities, there are people, all of whom need a place to live. But there’s more to it than this. Kansas City is becoming a cultural heavyweight, thanks to icons such as the Kauffman Center for the Performing Arts, the Nelson-Atkins Museum of Art, the National World War I Museum, the Negro Leagues Baseball Museum, and so much more. The city just installed a streetcar system downtown, and suburban growth continues to push the metro area beyond what many ever imagined.
- Kansas City is just cool. Gorgeous fountains, world class barbeque, lively nightlife, abundant parkland, major league sports with a great fan base…these are just a few of the things that make KC a wonderful place to call home and invest in.