Kansas City has the hottest housing market in the U.S., according to a study by U.S. News & World Report.
Kansas City tied for the No. 1 spot with Austin, Texas, scoring 72.8 based on the U.S. News Housing Market Index, which pulls a variety of data points. The ranking considered housing demand, supply and the financial health of each metro area, including mortgage delinquencies, mortgage foreclosures, the ratio of median mortgage payments to income and other factors.
Other cities in the top five were Philadelphia, Omaha and Houston. All five scored above 70.
"What these hottest markets seem to have in common are big-city amenities and unique cultures, without the high housing costs of (metro areas) closer to the West and East coasts," U.S. News said in an explanation of the study.
U.S. News highlighted Kansas City's high demand and relative affordability compared to other places. Kansas City scored in the highest in the financial health indicators, though the area has seen overall better ratings in terms of demand, supply and financial health beginning in 2021.
Year-over-year since June, Kansas City gained 15,000 jobs, and in May the unemployment rate was only 3.5%, which contributes to a robust housing market.
Cindy Cunningham, a broker associate with BHG Kansas City Homes and president of the Kansas City Regional Association of Realtors, cautioned to U.S. News that the market is still competitive, especially for first-time buyers
“In the lower price ranges it’s very difficult, and buyers keep getting shut out due to too much competition,” Cunningham told the outlet. “I’ve been in this business for 27 years, and there’s not much for sale under $250,000 or $300,000.”
Earlier in 2023, the Kansas City Business Journal analyzed the hottest ZIP codes in the Kansas City area in terms of average closing price, fewest days on the market and highest sales ratio. Leawood and Overland Park came out on top in some of these categories.
See the full list here.
