Why Real Estate Investors Love Kansas City

Kansas City has been listed as one of the top 10 hottest real estate markets for 2023 by Zillow. Realtor Steven May, who is based in Kansas City, explained why real estate investors are drawn to the city during a recent appearance on the KC Realtor Roundtable.

May emphasized that the cash flow is one of the biggest draws of the Kansas City market. He explained, “It’s that standard Midwest market. A lot of these investors are coastal, so New Jersey, New York, California, I have a large group in Hawaii. It’s very unaffordable there. The numbers are hard to make work to cashflow at all, so they come to Kansas City.”

May noted that investors see Kansas City as having a low barrier of entry. “You could buy a small multifamily apartment complex for the same prices as a two bedroom, one bath condo,” he said.

May also attributed the city’s appeal to its population and rent growth. He said, “I think with the growth of podcasts and sources like BiggerPockets, Kansas City has definitely been highlighted as a solid cash flow market. And of course, we have a ton of development going on here, great population growth, great rent growth, so I think that draws the attention as well.”

In addition to its strong cash flow potential, Kansas City also boasts a thriving tech industry. The city’s affordable housing market and overall low cost of living make it an attractive destination for real estate investors looking to get into the market without spending a lot of money upfront.

As Kansas City continues to grow and develop, it is likely that it will continue to attract real estate investors from all over the country who are seeking solid returns on their investments.