Pros and Cons of Buying a Home in Kansas City

Pros and Cons of Buying a Home in Kansas City | What You Need to Know

Wondering about the pros and cons of buying a house in Kansas City? You’ve come to the right place! From climate to affordability and much more, there are many factors to take into consideration before you decide to purchase a home in Kansas City. We’ll break down all the need-to-know info so that you can make an informed decision on whether this move is right for you. So buckle up, it’s time to explore the pros and cons of buying a home in Kansas City so you can make your decision wisely.

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The major pros of buying a house in Kansas City include its low cost of living, great job opportunities, and vibrant culture. Some of the potential cons include the risk of severe weather such as tornadoes, high property taxes, and higher crime rates compared to other US cities.

Pros of Buying a House in Kansas City

When it comes to deciding whether buying a home in Kansas City is right for you, there are many pros to consider. For starters, Kansas City homes are generally affordable. The median home price in the city is around $150,000 as of fall 2020, which makes it one of the more budget-friendly housing markets in the U.S. Additionally, Kansas City has experienced an impressive growth spurt over the past few years that has made it an attractive area for homebuyers looking for a place to settle.

On top of that, homes in the area tend to appreciate in value fairly quickly. Alongside growth brought about by tech companies moving into the area and new construction projects, this increases the attractiveness of purchasing real estate here for investors as well as those seeking homeownership for themselves or their families.

One of the more unique benefits of owning a home in Kansas City is its diverse cultural offerings. From barbecue and jazz music to large public art installations and multiple museums, there is something fun and interesting to explore in every corner of town. Homeowners also have access to countless walking trails and parks that make getting outdoors a breeze!

Another pro when considering purchasing real estate in Kansas City is its excellent education system. Public schools are top-notch while tuition at colleges like UMKC and Park University remain very competitive in comparison to larger universities elsewhere in the country.

Finally, home ownership comes with certain tax exemptions that many buyers find beneficial such as deductions on mortgage interest payments or property taxes. With these varied incentives, it’s easy to see why so many people are opting to purchase properties within this city’s limits.

Though house hunting can be stressful regardless of where one chooses to look, Kansas City stands out as an affordable option that offers extraordinary benefits both inside and outside of city limits. With accessible finance and investment options available through local banks and lenders, investing here can be quite simple considering all that this gem of a city has to offer. Moving onto the next section, let’s explore what kind of accessible finance and investment options buyers have when looking at properties here in Kansas City.

  • According to an analysis by Kiplinger, Kansas City is ranked as the seventh most affordable city to purchase a home in the United States, with average housing costs accounting for less than 18% of median income.
  • In 2020, Zillow reported that Kansas City’s average home value was $189,857 (a 3.2% increase year over year) and the median list price per square foot was $115.
  • According to Census Bureau data, the homeownership rate in Kansas City is 63.1%, which is slightly higher than the national average of 60.7%.

Accessible Finance and Investment Options

When considering the financial aspects of buying a home in Kansas City, there are several accessible investment options available. Through traditional lenders such as banks and credit unions, buyers can access mortgage loans with reasonable terms and interest rates. These loans might be more attractive to those with better credit, as they typically come with lower interest rates and longer repayment terms.

For individuals who may be less financially adept or have poorer credit scores, alternative financing options could be explored. Smaller neighborhood banks and private investors may offer less conventional loan products specifically tailored to their needs. The obvious disadvantage here is that these types of arrangements often come with higher interest rates or other strict conditions that could prove costly long-term.

Additionally, some potential buyers may opt to engage in a rent-to-own agreement or seller-financed purchase. With rent-to-own, the buyer will pay an inflated rate for the property over a set period of time, until enough money is saved for a traditional down payment. Seller financing involves a direct contract between the buyer and seller, where the seller obtains most of their purchase price at closing but then accepts future installments from the buyer. Although these contract types require careful negotiation and scrutiny, they can be beneficial to both parties if structured correctly.

The decision of which type of financing option best suits an individual’s needs is an important consideration when looking into purchasing a home in Kansas City. Regardless of what route is taken, it is essential for prospective buyers to weigh all their options carefully before making any commitments. Now onto the next section: let’s take a closer look at the market prices and choices currently available in Kansas City.

Most Important Summary Points

When purchasing a home in Kansas City, it is important to weigh all financing options carefully. Traditional lenders such as banks and credit unions offer reasonable terms and interest rates, but individuals with lower credit scores may benefit from engaging neighborhood banks or private investors who may offer less conventional loan products. Additionally, rent-to-own and seller-financing agreements can come with both risks and benefits, so these should be discussed carefully before making any commitments. Finally, being aware of the current market prices and choices in Kansas City is an essential part of the purchase process.

Market Prices and Choice

When it comes to buying a home in Kansas City, market prices can vary drastically. As a buyer, this can be seen as both a blessing and a curse. On one hand, it offers buyers a wide range of options when it comes to finding the perfect home for their budget. Whether you’re looking for an affordable starter home or looking to splurge on something bigger and more luxurious, you’ll find the perfect fit with Kansas City’s affordable housing market.

On the other hand, the price variations between properties makes it difficult to accurately predict what type of property is best for your budget. By doing extensive research into the area before signing on any dotted lines, you can avoid making an uninformed decision about which house is right for you. Make sure you know what amenities are available at each property and take into consideration how far away services like public transportation, schools, workplaces, and entertainment are from each property before committing to buy. Each neighborhood has its unique factors that may not be visible at first glance but these can have both positive and negative impacts on your purchase. When researching homes in Kansas City make sure to do your due diligence into all neighborhood amenities such as parks, stores, restaurants, etc. It’s also important to keep an eye out for deals like short sales that may sound too good to be true but could end up costing you even more money in the long run.

By keeping all of these considerations in mind when evaluating market prices and choices in Kansas City, buyers can avoid being taken advantage of and find their dream homes at prices they can afford. That brings us to our next section: Cons of Buying a House in Kansas City.

Cons of Buying a House in Kansas City

Buying a house in Kansas City may be a great opportunity for many individuals, but there are still some potential drawbacks that the prospective home buyer should consider.

One of the main cons of buying a house in Kansas City is the risk of high costs. The area has become increasingly popular over the past year due to its central location and variety of attractions, making it appealing to buyers. However, this also means property prices have risen accordingly, resulting in higher housing costs than in other similar-sized cities in Missouri. Homeowners will also need to be aware of homeowner’s insurance which can add an extra expense to monthly payments.

In addition to higher mortgage costs, homeowners in Kansas City should be prepared to pay additional taxes associated with owning a home. Property taxes may not be insurmountable but they can still put a strain on a budget when added to all the other routine bills associated with homeownership. Furthermore, these taxes tend to increase as property values go up and if you buy an older property that needs repairs or upgrades costs could rise even further if home improvements are necessary. In addition, it is always important to keep in mind the closing costs associated with purchasing a home which can cost several thousand dollars.

When weighing your options for buying a home in Kansas City, it is key that potential buyers consider all of the pros and cons before making their decision. The area provides amazing opportunities for new homeowners but the rising cost of living and numerous taxes need to be taken into consideration when weighing if it is the right choice for them. With that said, let’s move on to discuss the details of high taxes and closing costs in Kansas City.

High Taxes and Closing Costs

Buying a home in Kansas City involves taxes and closing costs like any other place in America. The total cost of taxes and fees varies from area to area, but generally speaking, you should expect to pay a minimum of 3% of the purchase price for taxes and fees.

On the positive side, property taxes tend to be lower than those in metropolitan areas. Kansas City was ranked 34th out of 35 cities for the highest property tax burden for residents, according to WalletHub’s 2019 report on Real Estate Taxation & Ownership.

However, there are also some cons associated with taxes and closing costs in Kansas City. Homeowner’s insurance premiums tend to be higher in this city when compared to other parts of the country due to the higher risk of tornadoes and other natural disasters. There are also transfer taxes that apply when real estate changes hands which are relatively high compared to prices seen elsewhere.

Overall, the validity of buying a home in Kansas City is still very much dependent on individual budgets, as not everyone considers taxes and closing costs when making their decision. It’s important to do research and consider all factors involved before making any big decisions.

Next, let’s explore how building your home equity can be beneficial in Kansas City.

Building Your Home Equity in Kansas City

Buying a home in Kansas City provides the potential for building valuable home equity. Equity is the difference between what you owe on your mortgage loan and the market value of your property, allowing homeowners to build their financial worth. When constructing or purchasing an existing home in Kansas City, you can start accumulating equity from day one. Every time you make a payment towards your principal balance or the market value of your home rises, your equity increases. Over time this increase in equity can provide homeowners with access to capital through home equity lines of credit or by selling their property at a profit.

Certain scenarios can potentially decrease your home’s equity, such as when market prices decline, when you fall behind on payments, or if major repairs and renovations are necessary. Homeowners must weigh up the risks associated with creating their equity and factor these in when deciding whether now is the right time to invest in buying a property.

Ultimately, building home equity is an essential part of ensuring that owning a house in Kansas City is financially viable. Before beginning the process of purchasing a property within the city limits, it’s important to understand the implications of both buildings and potentially losing equity from a given piece of real estate. With this knowledge firmly embedded in homeowners’ minds, they will then be able to decide whether investing in a piece of real estate is right for them financially.

The next section of this professional article will detail popular neighborhoods in Kansas City that are attractive to potential homeowners.

Popular Neighborhoods in Kansas City

Kansas City is home to a diverse array of vibrant neighborhoods and colorful personalities, making it an attractive destination for would-be homeowners. Whether they’re looking for historic havens, hipster hangouts, or close-knit family communities, there’s something for every taste in this Midwestern city. Some of the most popular neighborhoods in Kansas City include:

Westport: One of the oldest neighborhoods in Kansas City, Westport has gained tremendous popularity among young professionals and families. With its eclectic mix of shops, bars, and restaurants, this vibrant district has become a favorite weekend hangout spot. Its traditional architecture gives the area a homey feel while its many pubs and entertainment options attract visitors from all over the state.

The Crossroads Art District: This artistic neighborhood is made up of artists’ studios, music venues, galleries, and finely crafted eateries. Home to numerous events throughout the year, The Crossroads is one of the liveliest places in town. Those who enjoy creative expression will feel right at home in The Crossroads district.

Crown Center: Crown Center is a lively cultural hub situated near downtown Kansas City. With its unique shops and attractions as well as some of the city’s best restaurants, Crown Center is a great place for couples and families looking for entertaining activities around town. Homeowners in Crown Center will also enjoy easy access to Union Station, which houses multiple museums and theaters dedicated to art and history.

River Market: Home to a vibrant farmers market, River Market has become one of the most beloved places in Kansas City. From its delicious local produce to its artisanal baked goods, cheeses, and specialty items, River Market offers something special regardless of what brings you there. For those who prefer urban living with an organic twist, River Market is an ideal spot.

These are just four of the more prominent neighborhoods in Kansas City – each offering its unique charms that cater to different tastes. Whether you’re looking for small-town charm or big-city vibrancy, Kansas City has what you need for your home sweet home.

Now that we’ve explored some popular neighborhoods in Kansas City, let’s move on to discuss what prospective homeowners should know about The Cost of Living in Kansas City.

The Cost of Living in Kansas City

The cost of living in Kansas City is generally considered quite affordable. Low prices on things like housing, utilities, and groceries help to keep living expenses low. Purchasing a home in the area can certainly be done without breaking the bank, which is one of the reasons why it’s a popular destination for many people.

However, it’s important to understand that prices can vary widely across different neighborhoods. Some areas may be considerably more expensive than others, so it’s wise to research different areas to get an understanding of what kind of house you can buy within your budget.

Other expenses beyond just buying the house should also be taken into consideration when planning to buy a home in Kansas City. Taxes, insurance, and the cost of utilities are all important factors to consider before making a purchase decision. All these will contribute to the overall cost of living in a certain area and should be factored into any budgeting decisions prior to making an offer to buy a home.

Understanding these costs early on is crucial for deciding if buying a house in Kansas City is right for you or not. With some research and planning you can find ways to make sure your desired home fits into your budget using strategies such as taking out a loan with lower interest rates or looking for homes that require less rehabilitation work.

In conclusion, the cost of living in Kansas City can generally be considered quite affordable compared to other major cities, although one should do their research on specific neighborhoods before deciding whether or not buying a house there is the right choice for them. The next section will focus on coming up with a conclusion: Is buying a house in Kansas City right for you?

Conclusion: Is Buying a House in Kansas City Right For You?

Investing in real estate in Kansas City has both benefits and drawbacks. Before making the decision to purchase a home here, take the time to weigh all of the pros and cons.

When it comes to the potential positives, houses in Kansas City tend to be relatively affordable when compared to some other cities and regions, not to mention a multitude of attractive neighborhoods — including some with rich historical and cultural heritage — that make for great living environments. Furthermore, property taxes are relatively low and you may also be able to take advantage of tax credits. Homeownership could also bring significant financial stability as well as provide equity down the road.

On the downside, homebuyers should note that buying a home in Kansas City is still an investment, therefore putting something most people consider to be their “nest egg” is still risky. Home values can fluctuate over time due to market trends beyond anyone’s control, so it’s important to factor this into your decision-making process. Additionally, budgeting estimates may not always account for maintenance costs or necessary upgrades after purchasing a new property.

All things considered, determining whether investing in a house in Kansas City is right for you will depend on how well your own individual goals and needs align with what is available locally. Ultimately, you’ll need to decide if the pros outweigh the cons or vice versa when it comes down to investing in real estate in this market.

Frequently Asked Questions and Their Answers

What are the housing prices like in different areas of Kansas City?

Housing prices in Kansas City vary depending on the location. Generally, homes closer to the city’s center, such as downtown Kansas City or Westport, are more expensive due to their proximity to amenities, attractions, and opportunities. On the other hand, houses located in suburbs like Overland Park, Lenexa, and Lee’s Summit offer more affordable prices.

Further afield, in cities like Lawrence, Topeka, and Manhattan the cost of buying a home is generally lower than in central areas of the city with median sale prices ranging from $200,000-$250,000 across these locations. However, many of these cities are more removed from the culture and activities available in Kansas City itself.

Overall it is possible to find competitively priced homes in a range of locations around Kansas City though home buyers should also take into account the distances from amenities and job opportunities when making their decision.

What potential problems should buyers be aware of when considering purchasing a house in Kansas City?

When considering purchasing a home in Kansas City, potential buyers should be aware of possible issues related to extreme weather, increased potential for flooding, and elevated crime rates.

Extreme weather can present serious obstacles for homeowners. Kansas City’s climate is prone to severe thunderstorms and tornadoes that may cause property damage and power outages. Blizzards added to the mix create even more potential risks.

Another concern when it comes to owning a home in Kansas City is flooding. While much of the city lies on higher ground, parts are vulnerable to flash flooding due to the slight elevation changes along certain areas as well as heavy rainfall during certain times of the year. Proper insurance account for these risks before signing anything should be considered a priority.

Lastly, Kansas City has seen an uptick in crime in a few of its neighborhoods over the past several years. Potential buyers should thoroughly research the surrounding area before deciding on a purchase. While many areas remain safe, there have been reports of burglaries and other crimes occurring in certain neighborhoods more than others. Familiarizing oneself with crime statistics is key to making an informed decision about buying a house in Kansas City.

Key Questions:

1. What are the pros and cons of buying a home in Kansas City?

The key pros of buying a home in Kansas City are affordability, its vibrant culture, and many amenities. The city offers a wide range of housing options with prices to fit any budget as well as strong job opportunities. Additionally, Kansas City is home to various exciting attractions, such as award-winning restaurants, professional sporting teams, and music venues.

The cons of buying a home in Kansas City include the possibility of seasonal weather extremes such as tornadoes and blizzards, traffic congestion due to the city’s size, and an increased cost of living. Additionally, with it being an urban area there may be crime issues that need attention from law enforcement agencies. It is important to research potential neighborhoods before committing to a purchase decision.

2. Are there any special financing programs available?

Yes, there are several special financing programs available for purchasing a home in Kansas City. For buyers who qualify for them, FHA loans provide low down payments and closing costs and allow borrowers to roll estimated closing costs into their mortgage loan limits. Veterans Administration (VA) loans offer no down payment requirement and may have lower interest rates than conventional loan products. Additionally, USDA Rural Development loans are available for qualified low-income buyers looking to buy property in rural areas outside the city center.

What are the advantages and disadvantages of living in Kansas City?

Advantages of Living in Kansas City:

1. Low cost of living compared to other big cities – Overall costs of goods, services, and housing are significantly lower in the Kansas City metropolitan area than those in many other large cities, making it an attractive option for families and retirees looking for affordability.

2. Central location – Being conveniently located between multiple major U.S. cities, like Chicago and Dallas, residents of Kansas City can easily jet off on a weekend trip to almost anywhere in the country without having to travel too far.

3. A thriving cultural scene – With its many art galleries, music venues, theater districts, professional sports teams, world-class museums, and some of the best barbecue around, KC is more than just a flyover city – it’s a real destination for lovers of culture and adventure.

4. A growing job market – Kansas City’s stock is on the rise! Strongly supported by both public and private initiatives, companies such as Cerner Corporation and Shoes For Crews have firmly rooted their businesses in KC while others continue to follow suit.

Disadvantages of Living in Kansas City:

1. Extreme weather conditions – Temperatures can climb up to 100 degrees during the summer months while winter lows can reach near zero degrees – talk about extreme weather!

2. Crowded commutes – With over 2 million people living in the metropolitan area traffic congestion continues to worsen with each passing day making commutes anything but enjoyable or convenient in certain parts of the city.

3. Higher crime rate – Though true crime rates tend to vary from one region to another throughout the metro area, certain areas suffer from considerably higher crime rates than others, making them less desirable destinations for potential home buyers.

4. Lack of diversity – When it comes to racial diversity, Kansas City does lag behind other large cities; however efforts have been made to address this issue over recent years by providing greater resources for minority groups looking to make the city their home.

What are the pros and cons of buying a house in Kansas City?


1. Kansas City is a very affordable place to buy a home, with the median home price sitting at around $180,000 – making it well below the national median price of around $295,000.

2. The area is growing and offers strong potential for long-term financial growth in what you decide to invest in.

3. Kansas City has an incredibly vibrant industrial, cultural, and recreational scene which will bode well for prospective homeowners looking to purchase a place with plenty to explore and take advantage of.

4. The city’s tight-knit neighborhoods make living in Kansas City an enjoyable experience as many properties feature noteworthy amenities such as quality schools and access to entertainment attractions.


1. The cost of living in Missouri is slightly higher than the national average due to higher taxes than most states.

2. The real estate market tends to be competitive in parts of Kansas City, meaning that buyers may have difficulty finding their ideal home or deal on a property.

3. Traffic congestion can be an issue for people looking to commute into the downtown area from the suburbs – adding time and energy to daily trips.

4. Weather fluctuations can strike hard – with Tornados common throughout the region – so being sure your home is ready for them (or able to tolerate them) should be a priority for anyone buying a property here.