Even though the pandemic meant staying put and working from home for many people, there were quite a few that pulled up stakes and moved to Kansas City. According to a recent analysis of 38 major U.S. metropolitan areas by LinkedIn, Kansas City had the 8th biggest gain in attracting new net residents since last April 2020, with a net increase of 4.8% over the prior period. The number one city on the list was Salt Lake City, Utah, with a 12.3% net gain. The analysis calculates the inflow-outflow ratio year-over-year from April 2020 to February 2021.
One of the determining factors for each of the top ten cities is affordable housing. Kansas City ranks 10th on a recent AdvisorSmith study of the most affordable cities for homebuyers. Having spacious geography is another determinant, which is likely tied to social distancing restrictions placed by the pandemic. Another factor could be the economic growth potential of a market, which a Business Facilities 2019 report again has Kansas City ranked at number 10 for large U.S. cities. More business growth means more employees that will need to move into a market.
One problem, however, is declining inventory. A report by the Kansas City Regional Association of Realtors found that the area's housing inventory dropped 51.3% in 2020 compared to the prior year. One solution to this problem seems to be building new homes. According to the Home Builders Association of Kansas City, there were 5,366 single-family home permits issued in 2020, up 13% over 2019.
"Consumer demand for single-family homes both nationally and in the Kansas City metro was incredibly strong in 2020," said Will Ruder, Executive Vice President of the KCHBA. "While we are anticipating a continued consumer-friendly interest rate environment in the near term, the rising cost and overall availability of building materials will likely affect our ability to keep pace with demand. New home construction was a bright spot in the economy in 2020, and we are optimistic that will continue into 2021."
If you're looking to purchase a home in Kansas City, talk to the mortgage experts at NASB at (816) 312-5556 or click here for more information.