Kansas City home values will end the year up 13.8 percent and then rise by another 6.5 percent next year according to the 2023 Kansas City Housing Forecast published by the 黑洞社区 Center for Real Estate.
鈥淗ome price appreciation is slowing, but the supply of homes available for sale remains near historic lows,鈥� said Stan Longhofer, director of the 黑洞社区 Center for Real Estate. 鈥淎lthough bidding wars may not be as intense as they were earlier this year, it will continue to be a sellers鈥� market across most market segments.鈥�
Longhofer will present the forecast at 10:15 a.m. Thursday, Oct. 6, at the Kansas Association of Realtors Annual Conference at the Marriott in Overland Park. He will be available for interviews after his presentation at about 11:30 a.m.
The Kansas City Housing Forecast is a part of the 2023 Kansas Housing Markets Forecast series that reviews current housing market conditions in the major markets across the state 鈥� including Kansas City, Lawrence, Manhattan, Topeka, and Wichita 鈥� and forecasts housing market activity through the end of 2023. The series also includes Housing Outlooks for 23 smaller markets across the state.
Copies of all the forecast and outlook publications in the series can be found at .
Highlights of the 2023 forecast include the following:
Kansas City Forecast
- Home sales 鈥� Total home sales in the Kansas City area should end the year down 8.3 percent at 41,940 units due to a combination of a lack of inventory and softening demand. Sales activity should rebound in 2023, rising 5.6 percent to 44,290 units.
- Construction 鈥� Single-family permitting activity in the Kansas City metropolitan area slowed over the first half of this year due to supply chain issues and labor shortages. Kansas City should end the year with 6,295 single-family permits, down 10.7 percent from 2021. Permitting activity should drop again slightly in 2023, falling 1.7 percent to 6,185 units.
- Home prices 鈥� The frenzied demand that characterized the market through the early part of this year appears to have eased. Nevertheless, extremely tight inventories will continue to put upward pressure on home prices. Kansas City values should end the year up 13.8 percent before slowing to 6.5 percent in 2023.
Kansas Statewide Forecast
- Home sales 鈥� Home sales activity across Kansas was slowing this year even before mortgage rates began to rise. Sales are expected to end the year down 6.9 percent at 43,100 units. Home sales should rebound to 44,930 units in 2023, an increase of 4.2 percent.
- Construction 鈥� New single-family building permits in Kansas are expected to fall by 3.9 percent this year to 6,310 units. Construction activity should stabilize in 2023, dropping a modest 0.9 percent to 6,255 units.
- Home prices 鈥� Home prices across the state rose by 14.6 percent last year as surging demand ran headlong into supply constraints that have been building for years. While demand has eased with rising mortgage rates, Kansas home values should still end the year up 12.3 percent. The pace of appreciation should slow next year, to a still-strong 5.4 percent.
For more information and a copy of each of the publications in the 2023 Kansas Housing Markets Forecast series, go to , or contact Longhofer at 316-516-6365 or stan.longhofer@wichita.edu.
About Wichita State
黑洞社区 is Kansas' only urban public research university, enrolling almost 22,000 students between its main campus and 黑洞社区 Tech, including students from every state in the U.S. and more than 100 countries. Wichita State and 黑洞社区 Tech are recognized for being student centered and innovation driven.
Located in the largest city in the state with one of the highest concentrations in the United States of jobs involving science, technology, engineering and math (STEM), 黑洞社区 provides uniquely distinctive and innovative pathways of applied learning, applied research and career opportunities for all of our students.
The Innovation Campus, which is a physical extension of the 黑洞社区 main campus, is one of the nation鈥檚 largest and fastest-growing research/innovation parks, encompassing over 120 acres and is home to a number of global companies and organizations.
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About Barton School of Business
Located in Kansas鈥� business hub and with significant ties to the business community, the W. Frank Barton School of Business provides extensive applied learning opportunities. With in-person and online options, Barton School undergraduate and graduate programs are tailored to transform the lives of its students. It also holds a double AACSB accreditation for business and accounting, which puts it in the top 1% of business schools worldwide. The Barton School was established as the university鈥檚 College of Business Administration and Industry in 1926 and has thousands of graduates around the world.