KC Falling Behind in Homes Priced $225,000 to $275,000
With a shortage of homes available and those homes commanding higher prices, many prospective buyers are being priced out of the market. In fact, as of Q2 2018, 77 percent of prospective buyers nationwide could afford fewer than half the homes available, according to the National Association of Home Builders (NAHB).
The market share of new homes under $300,000 is just 43 percent nationwide, according to the NAHB. In the Kansas City area, MLS listings confirm this shortage, particularly in the price range $225,000 to $275,000. In early February 2019, there were only 129 listings for existing homes (built after 1980) and only 39 listings for new construction in Kansas City, Mo. Similarly, in Lee’s Summit the MLS found 38 listings for existing homes and five listings for new construction.
There is only a two-month supply of new and existing homes available for sale in Kansas City currently, which is down 4.3 percent from December 2017, according to a December 2018 report from the Kansas City Regional Association of Realtors (KCRAR). At the same time, home prices continued their upward climb in 2018 (up 6.7 percent) due to high demand for fewer homes, according to KCRAR.
The lack of new and existing homes available to interested buyers has cities such as Kansas City, Mo., and Lee’s Summit, Mo., evaluating the idea of constructing more middle-income communities so their cities can attract new residents.
“As cities look for ways to address the shortage of affordable housing and builders develop plans to construct homes to meet this demand, they need advocates in the industry and in the communities to help push these measures forward,” said Shawn Woods, president of the Home Builders Association and of Ashlar Homes.