Kansas City, Missouri

Property values in Kansas City are more affordable than the rest of the country today

• In January 2017, the median price of three bedroom homes in Kansas City was $141,000. This is about 25% lower than the national average of $187,000.
• In January 2017, the median price of three bedroom homes in the neighborhoods where RWN members was less than $86,000. This is 54% lower than the national average.
• This shows us that property values in the Kansas City metro are uniquely affordable, especially in the neighborhoods where RWN members are investing today.

Kansas City offers investors a good cash flow opportunity

• In January 2017, the median monthly rent for three bedroom homes in Kansas City was $1,224, which is 0.87% of the purchase price of $141,000. This is higher than the national price-to-rent ratio of 0.74%.
• In the neighborhoods where RWN members invest, the median monthly rent for three bedroom homes was just under $1,000 in January 2017, which is 1.19% of the $86,000 purchase price.
• This shows us that Kansas City offers investors the opportunity to make monthly cash flow at a higher price-to-rent ratio than the national average.

Kansas City property values have appreciated more slowly than many other U.S. metros

• In January 2012, the median price of three bedroom homes in Kansas City was $121,000. Over the next six years (Jan. 2012 to Jan. 2017), three bedroom homes in Kansas City have appreciated by about 17%. During the same period, three bedroom homes increased by 29% nationwide.
• This shows us that Kansas City property values have appreciated more slowly than many other U.S. metros.

Kansas City rental prices have increased more than national average since 2012

• Between January 2012 and January 2017, the average rent for three bedroom homes also increased by 17%, versus 14% nationally.
• This shows us that rents in Kansas City are rising at a faster rate than many other U.S. cities, which means there is likely a stronger demand for rental homes here.

Kansas City’s population is growing faster than the national average

• Since 2010, Kansas City’s population has increased by more than 4.5%, which is slightly higher than the national average of 4.45%.
• This shows us that Kansas City has been growing at a rate consistent with the national average. According to the most recent population estimates, Kansas City is expected to grow more rapidly in the coming years. In fact, growth has already started to pick up; between 2013 and 2015, there was an annual growth of about 15,000 a year. But that growth jumped to over 20,000 between 2015 and 2016.

The job growth in Kansas City has been slower than the national average

• In the past year, the number of jobs in Kansas City has grown by 1.30%. This is lower than the U.S. annual job growth rate of 2.31%.
• Although job growth in Kansas City has been slower than the national average, the area has been growing consistently. KC has also gained national recognition as one of the nation’s top emerging technology and entrepreneurial hubs.
• In fact, a recent report released by Cushman & Wakefield (Tech Cities 1.0 report by Cushman & Wakefield – 6/8/2017) ranked Kansas City in the top 25 U.S. cities for technology. The cities were determined by factors such as access to talent, investment capital, and growth opportunity.

Kansas City is Still Affordable

• Property values in the Kansas City metro are uniquely affordable, especially in the neighborhoods where RWN members are investing today.
• In the neighborhoods where RWN members invest the median price of 3 bedroom homes was less than $86,000 in January 2017. This is 54% lower than the national average.

Kansas City is Cash Flowing

• In January 2017, the median monthly rent for three bedroom homes in the neighborhoods where RWN members invest was just under $1,000, which is 1.19% of the $86,000 purchase price.
• This shows us that Kansas City offers investors the opportunity to make monthly cash flow at a higher price-to-rent ratio than the national average.

Kansas City is Growing

• Kansas City’s population has been growing at a rate consistent with the national average. According to the most recent population estimates, growth should pick up in the coming years.
• Although job growth has been slower than the national average over the last year, the number of jobs (within Kansas City) has been growing consistently. KC has also gained national recognition as one of the nation’s top emerging technology and entrepreneurial hubs.

Kansas City is Appreciating

• Over the last five years (Jan. 2012 to Jan. 2017), three bedroom homes in Kansas City have appreciated by about 17%, which is lower than the national average of 29% appreciation.
• This shows us that Kansas City property values are appreciating more slowly than many other U.S. metros, which means there is good opportunity for equity growth in the long term. This offers investors a long term equity growth opportunity with less risk.