Kansas City is a lively, vibrant place to live and work and the real estate market here reflects that.
With everything one needs to thrive, employment, culture, shopping, entertainment, sports and friendly, affordable neighborhoods, it’s no wonder KC is growing while other cities are shrinking.
With foreclosures slowing across the board and confidence slowly returning in our economy, the real estate market in Kansas City is surviving well. While far from the dizzy heights of 2007/8, this growth is much slower but more sustainable. We have hopefully seen the last of boom and bust economics and have returned to common sense.
The average household income in Kansas City is slightly lower than average at $44,682. The average nationwide is $50,935, so while there isn’t much in it, KC residents to earn slightly less than their neighbors.
There are also fewer families here than other cities, with 25.81 percent of households containing families. The national average is 26.3 percent. Residents are also younger, with the average age being a mere 34.6 years old. That helps with the young energy that the city exudes, partly attracting younger residents and partly because of the younger residents.
Residential Real Estate Conditions
Thanks to the slow stabilization of the real estate market and the draining of excess inventory from foreclosures, the KC real estate market is slowly gaining equilibrium again.
The first half of 2012 saw a slight increase in the number of properties sold, but a reduction in the sales price. So there is still plenty of activity in the real estate market but values are still slightly depressed.
Average property prices are currently around $170,406, which is up 0.1 percent over this time last year. While the increase is slow, it will be able to be sustained over the longer term.
Commercial Real Estate Conditions
Commercial real estate is seeing modest gains, with a rise of 1.1 percent over second quarter 2012 prices. The average asking price for office space is $86.25 per square foot, which while positive, it still down 5.8 percent over 2011.
Industrial real estate isn’t doing as well though with prices dropping for the 4th consecutive year. The average asking price for industrial space is $49.60 per square foot, down from the high of $60,38 a square foot in 2008. Demand is also modest but steady.
Retail property is also under pressure, with asking prices also down. The average retail space is $104.74 per square foot, down from its 2008 high of $122.04 per square foot.
The real estate market in Kansas City reflect that of the rest of the country. Trading is still tough and people are still being very cautious. There are signs of recovery but it is slow and steady.