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Best Places to Invest in Kansas City, Missouri

Best Places to Invest in Kansas City, Missouri

It’s no secret that savvy investors have their eye on Kansas City investment real estate. But where should you invest in Kansas City and where should you avoid? Understanding the Kansas City metropolitan area will be key in making sound investment decisions here.

The Kansas City metropolitan area is unique in that it spans a portion of both Missouri’s western border and Kansas’ eastern border. The area comprises fourteen separate counties, and its total population tops 2 million. Kansas City is the largest metropolitan area in Kansas and the second largest in Missouri, after Saint Louis. As such, this market signals massive opportunity for real estate investors.

Highlights include:

  • Population: 505,272 in the city proper; 2,144,129 in the metro area
  • Median sales price: $226,426
  • Change in sales price (year over year): 16.5%
  • Median rent: $1,140
  • Renter-occupied households: 46%
  • Median household income: $70,7215

This area is regularly named one of the best to live, work, and play in, and real estate investing is no exception. In fact, Kansas City investment real estate is in high demand since TIME named the city one of the best markets to purchase in. But, if you’re looking to break into this promising market, you’ll need to know which areas to invest in and which to avoid.

So, the very best places to invest in Kansas City proper? It depends on your goals and motivations. Kansas City is a large and diverse city. Whatever your real estate goals are, this city can deliver.

Pro Tip: Evernest boasts an expert team of boots-on-the-group professionals in Kansas City, Missouri. Our investor-friendly agents can help you find the perfect Kansas City property, and our property management professionals can complete the rehab, secure tenants, and keep it in tip-top shape. Just let us know what you’re looking for and we’ll be in touch within 24 hours.

Kansas City, Missouri

Greater Downtown (ZIP Codes 64101, 64105, 64108, and 64109)

Kansas City’s Greater Downtown neighborhood offers primarily A and B class properties that come with little risk and substantial reward. The area has a distinct urban feel, with plenty of retail, dining, and entertainment to go around.

These homes are in high demand, so unlikely to remain vacant for long. Other highlights include:

  • Population: 28,111
  • Median sale price: $192,500
  • Change in sales price (year over year): -23.0%
  • Days on market: 52
  • Median rent: $959
  • Renter-occupied households: 76%
  • Median household income: $44,917

Perhaps most notably, not only do more than three-quarters of Greater Downtown tenants rent, sales prices have actually decreased 23% in the past year. It’s no secret that very few markets can say the same.

Suggested Reading: 6 Factors to Consider When Choosing a Neighborhood to Invest In

Suggested listening: Class of Neighborhoods: Here’s What You Need to Know

Briarcliff West (ZIP Codes 64116 and 64152)

If you’re interested in investing in a more suburban market, nearby Briarcliff West could fit the bill. This suburban neighborhood is located just seven miles north of Kansas City’s core. Tenants enjoy diverse local restaurants, quiet coffee shops, and scenic stretches of the Missouri river.

Other highlights include:

  • Population: 54,478
  • Median sale price: $238,000
  • Change in sales price (year over year): 41.7%
  • Median rent: $655
  • Renter-occupied households: 36%
  • Median household income: $48,429

Decatur offers a more suburban feel than Downtown Kansas City and, depending on your real estate goals, could be a great place to invest. A local agent with specific market knowledge can help you determine if Briarcliff West is the right KC neighborhood for you.

Red Bridge North (ZIP Code 64131)

Red Bridge North is one of Kansas City’s most desirable neighborhoods. It’s located a short 16 miles south of the city center, and offers a more suburban feel. The area is known for its abundance of green space and warm community. It’s also ranked #4 for best neighborhoods for Kansas City young professionals, #6 for most diverse neighborhood in the city, both of which are sure to draw plenty of eager renters.

Other highlights include: 

  • Population: 50,959
  • Median sale price: $253,500
  • Change in sales price (year over year): 20.7%
  • Days on market: 11
  • Median rent: $1,034
  • Renter-occupied households: 44%
  • Median household income: $68,286

Don’t overlook the fact that nearly half of the 50,000 Red Bridge North tenants are renters! Competition in this neighborhood is fierce, though. Homes are only on the market for an average of 11 days, and you’ll be up against eager homeseekers as well as your fellow investors. If you’re interested in this neighborhood, you’ll want to connect with an investor-friendly agent for a leg up.

Hickman Mills (ZIP Codes 64134 and 64137)

Hickman Mills is a suburban neighborhood located just 15 miles south of Downtown. Compared to other Kansas City areas, Hickman Mills is rated #5 in most diverse neighborhoods and #6 in neighborhoods with the lowest cost of living. 

With higher crime rates and older homes, this neighborhood is home to more C and D class properties. Benefits of these property classes include lower prices, higher returns, longer-term tenants, and the potential for appreciation.

Other highlights include:

  • Population: 32,861
  • Median sale price: $136,000
  • Change in sales price (year over year): -6.6%
  • Days on market: 6
  • Median rent: $1,060
  • Renter-occupied households: 51%
  • Median household income: $44,466

With more than half of Hickman Mills tenants opting to rent and sales prices actually decreasing in one of the hottest real estate markets ever seen, Hickman Mills offers a compelling choice for real estate investors interested in affordable parts of the Kansas City area. If you need help navigating the neighborhood, an investor-friendly agent could highlight ideal areas, potential homes, and even off-market deals in Hickman Mills. Just let us know what you’re looking for and we’ll be in touch within 24 hours.

Swope (ZIP Codes 64130, and 64132)

Swope is a suburban neighborhood located just 8 miles south of core Kansas City. The community is sandwiched between Blenheim Square Research Hospital and the Kansas City Zoo, which means plenty of foot traffic and potential renters.

Swope is known for its close-knit community and affordability. In fact, Swope is rated third in neighborhoods with the lowest cost of living in Kansas City. 

Other highlights include:

  • Population: 34,312
  • Median sale price: $129,975
  • Change in sales price (year over year): 64.1%
  • Days on market: 59
  • Median rent: $856
  • Renter-occupied households: 54%
  • Median household income: $35,359

It’s important to note that more than half of all Swope tenants are renters. And, as the neighborhood is home to many C and D class properties, you may be able to tap into section 8 programs. Speak with an investor-friendly agent for more in-depth information, but Kansas City’s Swope neighborhood is certainly one you’ll want to keep an eye on.

Final Thoughts: Best Places to Invest in Kansas City, Missouri

The Kansas City, Missouri, metropolitan area offers an array of urban, suburban, and even rural options for real estate investors. Whether you’re a local Missourian or out-of-state investor, you’ll want to keep an eye on this red-hot market.

Get Started Buying Homes With Evernest

Whether you’re purchasing one Kansas City home or one hundred, you don’t have to go it alone. 

If you’re ready to buy your first (or next) investment property, here are 3 steps to get started today:

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