1. A Cooling Investor Presence—Opportunity for Locals
Institutional investor activity has declined by about 13% year-over-year in both Kansas and Missouri, with a 9% dip specifically in the Kansas City metro. This slowdown means less competition, especially in affordable neighborhoods—great news for first-time buyers and local families. Missouri also saw an 18% surge in FHA loan usage, further leveling the playing field for individual buyers.
2. Kansas City Remains a “Hot” Market
Kansas City continues to stand out nationally. Zillow included it among the 10 hottest housing markets of 2025, alongside other Midwest cities like St. Louis. These are areas where demand heavily outweighs supply—creating seller-friendly conditions, with fast sales and competitive pricing
3. Local Market Snapshots: Kansas vs. Missouri
Johnson County, KS (e.g., Overland Park & Olathe):
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Median home price: $480,000, up 5.5% year-over-year.
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Inventory shrank by 2.9%, dropping to a 2-month supply.
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Homes sell in 27 days—well below the national average—highlighting a fast-paced market.
Kansas City Metro:
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Missouri side: Median in KC, MO is $289,265, +5.2%; days on market: 81 days.
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Kansas side: Median in KC, KS is $233,000, +7.6%; days on market: 66 days.
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Inventory is growing (15.9% increase in MO, 19.9% in KS), but the market remains competitive due to tight supply.
Missouri Statewide:
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Median home price around $261,000, reflecting a 4.4% increase.
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Sales volume rose 9.2%, while the average home stays on the market for ~25 days, suggesting a balanced but active market.
4. Mortgage Rates: The Waiting Game
Mortgage rates are hovering around 6.75%, which is suppressing demand to some extent. However, if rates dip to 6%, analysts say it could unlock homeownership for approximately 5.5 million more households, potentially driving a 14% surge in home sales—Kansas City among the metros poised to benefit most.
5. Urban Development Highlights: Enhancing Livability
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The KC Streetcar extension to UMKC, now under construction, is slated to open in October 2025—a significant boost to connectivity in southside neighborhoods
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South Loop Park (Roy Blunt Luminary Park) is underway—a 5.5-acre “lid” park connecting the CBD with the Crossroads district, projected to elevate property values and catalyze development in downtown KC.
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In Kansas City’s Lykins neighborhood, once plagued by blight, revitalization efforts—including affordable housing and park installations—are turning the area into a model for neighborhood reinvestment.
6. Migration Shifts: Midwest Gaining Ground
A broader migration trend is emerging: people are moving away from the overheated “Sunbelt” and toward Midwestern and Northeastern states, including Missouri. This shift is partly due to high costs in southern metros and climate-related concerns—boosting demand and long-term growth potential in the Midwest.
