Kansas City is predicted to one of the United States’ hottest housing markets for 2025, according to a couple of real estate organizations.
The National Association of Realtors picked 10 metro areas as its top 10 housing markets for the year, and Kansas City was one of three Midwestern cities to make the cut. The association said Kansas City was a hot spot for 2025 based on factors like the average mortgage rate, job growth and the share of out-of-state arrivals purchasing a home.
The association’s report also predicts that home prices will continue to increase in 2025, but at a slower pace compared to previous years, with increases likely to be around 2%. They predict a median existing-home price of $410,700 nationwide.
The report listed Kansas City’s existing-home median price at $245,000 and $230,000 for new listings. Of the 10 categories the association listed, Kansas City performed better than the national average in six, including:
- Share of loan originations, like mortgages, with a rate below 6% (75.5%, national average is 76.1%)
- Average mortgage rate (6.9%, national average is 7%)
- Share of millennial renters who can afford to buy (33.9%, national average is 29.7%)
- Share of households who could buy a home in the next five years (10.5%, national average is 10%)
- Share of starter-owner occupied housing units (41%, national average is 38.9%)
- Price growth (59.9%, national average is 56.2%)
“Kansas City is one of the few areas with both a lower average mortgage rate and a small share of locked-in homeowners, creating favorable conditions for financing and increased inventory,” the report says. “This area is also one of the most affordable markets for Millennial renters, with one in three of them able to afford homeownership.”
Kansas City is on the list with Boston; Charlotte, North Carolina; Grand Rapids, Michigan; Greenville, South Carolina; Hartford, Connecticut; Indianapolis; Knoxville, Tennessee; Phoenix and San Antonio.
Zillow also lists Kansas City as one of the top 10 hottest housing markets for 2025 with an expected growth of 3.8% and a home value index of $299,118.