Building Costs Per Square Foot in the City of Kansas (MO), USA

Residential Construction Market Analysis in the City of Kansas City (MO), USA

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Building costs are 6% above the national average in the City of Kansas in Missouri. When talking about cities in the midwest, all eyes go to Chicago, but the truth is that it is a region full of jewels that are worth mentioning. Not everything in life is big cities like authentic concrete jungles, but one type of city that has started to become more popular is cities that combine nature, good buildings, and a small-town spirit.

One of the midwest cities that meets these characteristics is Kansas City, Missouri. This city is one of the cheapest in the region, but it has a thriving real estate market that has been growing at a more than a stable rate in recent years.

In this article, we will tell you everything you need to know about the city so that you know if it is the right one for you to invest in the real estate market or buy your new home.

Kansas City (MO) Construction Outlook

Kansas City’s construction outlook is exactly what you’d expect from a Midwest city. It is clear that it is a city that wants to imitate a certain aesthetic or design of Chicago (a central city of the Midwest due to its importance), although this does not make Kansas City abandon its small-town spirit.

The truth is that in the financial center of the city you can find buildings identical to those you would see in Chicago, with a style of the 90s and 80s, but as you move away from the center the construction outlook begins to change.

On the outskirts, the city is full of houses for families, mostly the middle class, since there are not many neighborhoods with luxury houses or mansions. In addition, some townhouses and condominiums are rented by people who cannot afford a home or who only plan to live in Kansas City for a couple of years.

Kansas City (MO) Housing Market Analysis and Forecast

The Kansas City real estate market is growing at a steady rate. In the last year, its values ​​grew by 10%, and there were 5% more sales when compared to the same number of months in 2021. These numbers make the experts quite optimistic, especially considering what comes in 2023 with the new projects.

Properties take an average of 21 days to sell, which is three days less than the average during 2021 (back then it was an average of 24 days). Also, it’s a better average than the state average, since Missouri has an average of 35 days.

The properties that had the greatest increase in their values ​​are those located on the outskirts of Kansas City. Single-family homes saw a steady rise in their values, giving optimistic numbers for real estate investors.

Something that is not yet bearing much fruit is the world of rentals in Kansas City. It is not considered an attractive pole for tenants, since the buildings in the city are old, which is why they do not attract people, and there are better properties for rent in other parts of Missouri.

Kansas City (MO) Average House Price (Median Home Price)

The median home price value in Kansas City is $270,000 in October 2022. The peak of this annual number was in the month of June when it reached $285,000. According to some projections, it is expected to reach $300,000 by the summer of 2023.

In any case, the value of the median home price is an average that is obtained based on the price of all the residential properties listed for sale, so it is actually a price that can vary much more.

For example, the average single-family home is $280,000, with peaks of $296,000 during the summer of this year, and is expected to reach $320,000 in the summer of 2023. In the case of townhouses, the average value is $180,000 although in summer it saw peaks of $210,000.

Townhouse properties are not expected to see as much of an increase as single-family properties, perhaps reaching $220,000 during the summer of 2023. This is because while there is demand for these properties in Kansas City, they are still much cheaper houses than the other types of properties.

The condos/co-ops have an average value of $190,000, although it is expected that by the end of the year they could reach an average of $200,000. During May of this year, they reached a peak of $219,000. Some experts claim that it can return to $220,000 during the summer of 2023, but there is no certain data.

Proposed Residential Building Projects in Kansas City (MO)

In this city located in the Midwest, there is a wide variety of real estate projects of all kinds. Its variety and diversity are because Kansas City has a financial center that attracts a large number of inhabitants thanks to its buildings. Although some of these buildings are old, more and more real estate companies are betting on building new ones.

Therefore, there are at least 10 building projects that will be built between now and 2024 in the city center. These buildings will have between 15 and 20 floors and a fairly modern style. This new architectural design concept will help modernize the Kansas City skyline.

On the outskirts of the city, there are many projects of single-family homes and townhouses, and condominiums. Regarding the single-family homes, these are a series of houses built in the same neighborhood, with more than 3 rooms, a garage, and a large garden.

Townhouses and condominiums are being built around the Kansas City college campus, and it is expected that those residential properties will be leased, with the option of temporary rentals for college students to take advantage of.

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Building Costs Per Square Foot for Single Family Homes in the City of Kansas (MO), USA

Building costs are 6% above the national average in the City of Kansas in Missouri.

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in Kansas City ranges from $365.58 per sqft to $560.42 per sqft, with the average being $431.44 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in Kansas City ranges from $222.19 per sqft to $340.58 per sqft, with the average being $262.20 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in Kansas City ranges from $143.63 per sqft to $218.16 per sqft, with the average being $168.16 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in Kansas City ranges from $104.82 per sqft to $160.75 per sqft, with the average being $123.71 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in Kansas City ranges from $85.09 per sqft to $130.31 per sqft, with the average being $100.33 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in Kansas City ranges from $67.11 per sqft to $102.86 per sqft, with the average being $79.16 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.