Named as one of the top ten housing markets for buyers to consider, Kansas City boasts recent performance statistics in the real estate market that are impressive. Growth and demand are both booming; active listings have decreased by almost 50%, and median sales prices are up by nearly 15% over the last year.
Kansas City is the largest city in Missouri, located at the meeting point of the Kansas and Missouri Rivers. Many factors keep the housing market in KC strong, two of which are a pro-business government and a lively, diverse economy.
From the suburbs to the downtown area to the outlying areas, there’s a real estate boom in Kansas City, and you might want to hop on the next ride out there.
Kansas City’s Population: Fueling the Boom
Throughout the metropolitan area, there are 2.1 million residents, with about 500,000 in Kansas City itself. The population has grown faster than in cities like Cleveland, Cincinnati, and St. Louis. Year over year, the number of people who call the area “home” has increased 0.73%.
People moving to Kansas City from other areas of the country account for half of the population growth. By 2040, the city is expected to add 400,000 more residents. These new residents are swiftly claiming new homes in KC, especially those in the mid-price range.
Real Estate in Kansas City, Missouri
Building permits were up by 15% in September 2021 compared to the same time the previous year. In addition to the population influx, the rising costs of construction and materials have made resale homes an attractive option for buyers, further increasing the demand for single-family homes in the area.
Over the past five years, home values have increased by a whopping 59.3%. The median list price of a single-family home is $199,900. All this growth is excellent news for homebuyers and real estate investors, especially investors interested in buying turnkey properties in Missouri to reap the benefits of passive income rentals.
Turnkey Property Investment Presents a Prime Opportunity in KC
There has never been a better time to buy turnkey rentals in Kansas City. The average rent is $1,071, and rents in the city have increased 4% year over year. Forty-six percent of all occupied housing units consist of renter-occupied households, so landlords and would-be rental property owners would be wise to get in on such a lucrative and expansive rental market.
Turnkey properties in Kansas City provide an opportunity for significant passive income and much bigger long-term returns than many other investments. The advantages of turnkey rental property ownership are substantial and include:
- Protection against inflation
- Tax deductions
- Passive income cash flow
- Equity buildup
While investors mainly focus on how much income they can gain from passive income rentals, Missouri turnkey properties offer many additional boons.
Protection Against Inflation
Inflation is inevitable. However, there is a degree of protection against the squeeze inflation puts on everyone for owners of turnkey properties. Landlords can raise rent prices to stay ahead of inflation year after year while their mortgage payment remains the same, assuming the mortgage has a fixed interest rate.
The expenses related to owning turnkey properties are tax-deductible! This includes commissions, marketing fees, property management fees, purchases and repairs, and depreciation on appliances, among many others.
Passive Income Cash Flow
Turnkey property ownership provides a steady, reliable cash flow that is passive. As stated above, landlords can adjust the rent to keep up with inflation, ensuring that passive income remains adequate through the years to cover the mortgage, insurance, taxes, and fees. It should also remain high enough to stash a little extra cash away each month.
When the value of your turnkey property increases as the outstanding balance of your mortgage loan decreases, equity in the property builds. It’s common for turnkey investors to build equity in a short amount of time.
This is especially true for investors who take advantage of profitable housing markets in cities like Kansas City. Once you have built equity, you can use it as leverage for future financial means.
Kansas City Turnkey Properties
Kansas City has been ranked as one of the top cities for job growth, education, business, careers, and housing. The cost of living in KC is 3% below the national average, and the total per capita tax burden is 10% less than the national average.
The housing market is booming, and it’s going to stay that way for a while. If you’re looking for the best turnkey rental company in Kansas City to help you find the best real estate opportunities, contact Real Deal Properties.