Kansas City's Real Estate Market: A Bright Outlook for 2025

As we approach 2025, the Kansas City real estate market is poised for continued growth and attractiveness to both homebuyers and investors. The National Association of Realtors has identified Kansas City as one of the top 10 U.S. housing markets to watch in 2025, signaling strong potential for the coming year.

Market Dynamics

Home Sales and Prices

After a period of stabilization, home sales in Kansas City are forecasted to rebound in 2025, with a projected 4.4% increase. This uptick in sales activity reflects growing consumer confidence and a balanced market. Home prices are expected to continue their upward trajectory, with the Wichita State University Center for Real Estate anticipating a 5.6% increase in home values for 2025.

Construction and Inventory

New construction is showing signs of growth, with single-family building permits projected to increase by 0.7% in 2025, reaching 4,465 units. This modest rise in construction activity will help address the ongoing demand for housing and contribute to market balance.

Factors Driving Growth

Population Expansion

Kansas City's steady population growth is a key factor supporting the robust housing market. Projections indicate a 3.4% increase in population by 2029, ensuring sustained demand for housing.

Economic Strength

The city boasts a strong employment rate of 66.1%, underpinning a healthy local economy and supporting housing demand.

Affordability

Despite rising prices, Kansas City remains relatively affordable compared to national averages. The median home price is significantly lower, at 46% below the national average, offering room for appreciation and attracting both first-time buyers and investors.

Looking Ahead

As we move into 2025, Kansas City's real estate market presents a compelling opportunity for buyers and investors alike. With its combination of steady growth, affordability, and strong economic fundamentals, the city is well-positioned to maintain its status as a top housing market to watch. While challenges such as inventory constraints may persist, the overall outlook for Kansas City's real estate market in 2025 remains decidedly positive.