Kansas City is one of the 12 hottest housing markets for 2022, according to research from Realtor.com. Combined sales volume and price growth is projected to increase by 15.7% this year, which could mean more competition for investors looking for rental property in KC.
Home values in the metro area increased by over 17% last year, while rents for 3-bedroom homes also went up by 17% year over year. Although home prices in Kansas City are still relatively affordable compared to other major metros, Zumper reports that 45% of households are occupied by renters.
If Kansas City has been on your radar, now might be a good time to take a closer look. Here are 12 neighborhoods and suburbs in and around KC in which to consider buying rental property.
Key takeaways
- Kansas City is home to nearly 509,000 people in the city and about 2.4 million in the metropolitan area.
- Home values and median rents in KC grew by 17% year over year.
- 45% of housing units in the Kansas City metro area are occupied by renters.
- In neighborhoods like Midtown and Downtown Kansas City, more than 60% of households are occupied by renters.
>>Explore Roofstock's Kansas City investment properties.
Why invest in Kansas City?
Strong population growth, a robust economy, affordable home prices, and rising rents are 4 things that real estate investors look for, and Kansas City definitely delivers. As KCUR in Kansas City recently reported, the population of the city is the largest ever, and some of the suburban counties have seen growth rates of nearly 20% since 2010.
Kansas City is a major transportation center and a hub for high-growth tech sectors like finance and information technology. In fact, KC is ranked among the top 15 large metro areas with the most technology jobs per capita and is home to nearly 4,000 technology companies in the Kansas City metro area.
Population and job growth also drive the demand for housing and rental property in Kansas City and the surrounding suburbs. The value of a middle-price-tier home increased by 17.6% over the past year, according to Zillow (through Jan 31, 2022), while median rents for 3-bedroom homes have gone up by 17% year over year (Zumper, Feb 22, 2022).
12 great areas in Kansas City for investment properties
The Kansas City metropolitan area is nearly 8,000 square miles in size, with about 2.4 million residents living in over 220 neighborhoods.
According to Realtor.com, affordable neighborhoods in Kansas City, like Blue Hills, have median home listing prices of $115,000, while Parkdale-Walden is the most expensive neighborhood in which to buy a home, with a median listing price of $495,000.
Although the housing market in Kansas City is cooling off a bit, some homes are still getting multiple offers above the list price. Redfin reports that while homes are going under contract in about 21 days, hot homes can go pending in about 5 days.
Here are 12 neighborhoods in and around Kansas City that may be good for investment property. Data at the neighborhood level comes from Niche.com, Redfin, and Realtor.com.
Midtown/Plaza
The Midtown/Plaza neighborhood in Kansas City is dozens of blocks long, stretching from Penn Valley Park to the north, across Ward Parkway, and south to E. Gregory Boulevard. Midtown/Plaza has an urban-suburban feel, and most residents rent their homes:
- Population: 41,101
- Median sale price: $345,000
- Change in sales price (year over year): 12.0%
- Days on market: 38
- Median rent: $1,032
- Renter-occupied households: 67%
- Median household income: $58,366
- ZIP code: 64111
Greater Downtown
The Greater Downtown neighborhood in Kansas City includes the districts of West Bottoms and Hospital Hill. Located south of the Missouri River, Greater Downtown has an urban feel, a lot of restaurants and bars, and a large percentage of renter-occupied households:
- Population: 28,111
- Median sale price: $192,500
- Change in sales price (year over year): -23.0%
- Days on market: 52
- Median rent: $959
- Renter-occupied households: 76%
- Median household income: $44,917
- ZIP codes: 64101, 64105, 64108, 64109
Waldo
The suburb of Waldo is about 11 miles south of Kansas City, near Blenheim Square Research Hospital and St. Joseph Medical Center. Waldo has a sparse suburban feel, with a lot of restaurants and coffee shops:
- Population: 33,450
- Median sale price: $230,000
- Change in sales price (year over year): 7.0%
- Days on market: 22
- Median rent: $1,251
- Renter-occupied households: 25%
- Median household income: $96,371
- ZIP codes: 64114, 64131
Red Bridge North
Red Bridge North is a suburb 16 miles south of Kansas City, near the intersection of I-49 and I-435. The area has a dense suburban feel, with a lot of coffee shops and parks, and nearly half of the households are occupied by renters:
- Population: 50,959
- Median sale price: $253,500
- Change in sales price (year over year): 20.7%
- Days on market: 11
- Median rent: $1,034
- Renter-occupied households: 44%
- Median household income: $68,286
- ZIP code: 64131
Swope Park Campus
Suburban Swope Park Campus is located 8 miles south of Kansas City along Highway 71, between Blenheim Square Research Hospital and the Kansas City Zoo. The neighborhood has a sparse suburban feel, and more than half of residents rent their homes:
- Population: 34,312
- Median sale price: $129,975
- Change in sales price (year over year): 64.1%
- Days on market: 59
- Median rent: $856
- Renter-occupied households: 54%
- Median household income: $35,359
- ZIP codes: 64130, 64132
Hickman Mills
Hickman Mills is another suburb of Kansas City where more than half of residents rent their homes. Located about 15 miles south of Downtown, Hickman Mills is just south of the intersection of I-470 and I-49 and has a sparse suburban feel:
- Population: 32,861
- Median sale price: $136,000
- Change in sales price (year over year): -6.6%
- Days on market: 6
- Median rent: $1,060
- Renter-occupied households: 51%
- Median household income: $44,466
- ZIP codes: 64134, 64137
Briarcliff West
Briarcliff West is located about 7 miles north of Kansas City, near Waterworks Park and the Missouri River. The neighborhood has a dense suburban feel, with a lot of restaurants and coffee shops:
- Population: 54,522
- Median sale price: $466,000
- Change in sales price (year over year): -14.5%
- Days on market: 115
- Median rent: $1,018
- Renter-occupied households: 42%
- Median household income: $61,700
- ZIP codes: 64116, 64152
Martin City
Martin City is a suburb of Kansas City, located about 30 minutes south of Downtown, near the town of Grandview. It has a sparse suburban feel, with a lot of restaurants, bars, and parks:
- Population: 8,535
- Median sale price: $378,000
- Change in sales price (year over year): 48.2%
- Days on market: 13
- Median rent: $1,105
- Renter-occupied households: 34%
- Median household income: $92,773
- ZIP code: 64145
Shoal Creek Valley
The suburb of Shoal Creek Valley is ranked as the best neighborhood in Kansas City by Niche.com. Located northeast of Downtown at the intersection of I-435 and the Shoal Creek Parkway, the neighborhood has a sparse suburban feel, with a lot of restaurants, coffee shops, and parks:
- Population: 46,731
- Median sale price: $591,602
- Change in sales price (year over year): 4.3%
- Days on market: 108
- Median rent: $1,355
- Renter-occupied households 16%
- Median household income: $111,278
- ZIP code: 64157
Gashland
Gashland is a Kansas City suburb located 13 miles north of the city. Niche.com ranks the suburb as the second best neighborhood in which to buy a house in Kansas City. It has a sparse suburban feel and a lot of restaurants and coffee shops:
- Population: 48,204
- Median sale price: $335,000
- Change in sales price (year over year): 27.7%
- Days on market: 21
- Median rent: $1,129
- Renter-occupied households: 23%
- Median household income: $91,224
- ZIP codes: 64118, 64119, 64155
Longview
Longview is about 3 hours south of Kansas City, near University Health Lakewood Medical and Saint Luke’s East Hospital. The suburb has a sparse suburban feel, with a lot of restaurants, coffee shops, and parks:
- Population: 15,202
- Median sale price: $532,530
- Change in sales price (year over year): 20.2%
- Days on market: 3
- Median rent: $1,468
- Renter-occupied households: 21%
- Median household income: $113,111
- ZIP code: 64081
Little Blue Valley
Little Blue Valley is located north of Longview, about 14 miles southeast of Kansas City, near University Health Lakewood Medical. The area has a sparse suburban feel with a lot of restaurants, bars, and parks:
- Population: 34,049
- Median sale price: $315,000
- Change in sales price (year over year): 10.2%
- Days on market: 16
- Median rent: $982
- Renter-occupied households: 26%
- Median household income: $74,047
- ZIP code: 64133
>>Explore Roofstock's Kansas City investment properties.
