The Kansas housing market is on fire right now: it was rated seventh on Zillow's hottest real estate markets of 2023, and this juggernaut shows no signs of slowing. While home sales have been dropping nationwide, Kansas has experienced only half the national average drop in sales. Home prices are also increasing by an average of 3.8% across the state, proving there's no time like the present to jump in.
One of the reasons that Kansas is so popular is its affordable housing, which can prove quite a boon to potential real estate investors. It's never been easier to join this blazing market than now with a DSCR loan in Kansas.
The entire Kansas market is powerful at the moment, but some areas are of particular interest to real estate investors. By choosing rental properties in these regions, you can steadily generate income from your real estate investments to grow your portfolio to new heights.
With a twin city across the border in Missouri, Kansas City is unique, as is its real estate market. Over both sides of the city, home prices have risen 11.6% in recent years, and major industries have made their home as of late, including manufacturing, healthcare, animal care, and finance, which means well-heeled tenants willing to pay a premium for good rental properties.
The average rental income in the city for apartments is $1,220, while commercial real estate investments make around $21.74.
With a vibrant downtown and a bustling cultural district, Lawrence has much to offer residents, making a real estate investment in this town a natural choice. Lawrence's average residential rental income is $1,111; meanwhile, the commercial rent is approximately $20.39 per square foot. These excellent statistics align with much larger cities and given that housing prices are up 5.6% in 2023, they will only improve from here.
Prairie Village is a suburb of Kansas City; this cozy city is an upmarket option for those seeking high-end real estate investments. Last year, this little-known gem was Zillow's best market, proving there's great value in pursuing investment properties in the Midwest and Great Plains.
The numbers speak for themselves. Despite having less than a quarter of the population, Prairie Village commands higher rents in all sectors. You can expect to make an average of $1,688 monthly for residential rental properties; for commercial spaces, the rent is around $22.37 per square foot.
Affordable housing and excellent schools draw residents across Kansas and beyond to settle in this charming small town. You can expect an average rent of about $967 per month for residential rental properties; in contrast, commercial spaces make around $15.00 per square foot. This may seem relatively small compared to other areas on this list, but Spring Hill's population has been growing steadily at around 5.5% per year, meaning that a long-term real estate investment will pay off nicely over time.
Check out some of Visio Lending's recently closed DSCR loans in Kansas.