KC Experiences Sharpest Home Price Growth

It is no wonder that Kansas City inventory is at an all time low.  The housing market is pressed to less than a 2 month supply.  Leaving buyers with less and less inventory to choose from.  While, Sellers are finding this the prime opportunity to sell.

The ever demanding supply of rental properties continues to also rise.  Kansas City is an affordable market yielding higher cashflow for investors.  Alpine Kansas City focuses on investment portfolio real-estate.  With appreciation and upward trending rental rates, the housing outlook for 2018 continues on the upward slope.

Kansas City, Mo., experienced the sharpest home-price appreciation in 2017 on a one-year percentage basis, according to data from the Housing News Report released by real-estate data firm Attom Data Solutions. Home prices there rose 13.4% over 2016 levels, edging out the 13.3% growth posted by San Jose.

The migration of talent and jobs from high-cost housing markets to more reasonably priced housing markets is resulting in accelerating home price appreciation in those reasonably priced markets, many of which historically have posted slow-and- steady appreciation. Among metro areas with at least 1 million people, those with the strongest home price appreciation in 2017 were Kansas City, San Jose and Nashville – all of which posted annual home price appreciation of 13 percent.

 

 

Cities with the most home price growth in 2017
Metropolitan area 1-year home price appreciation 5-year home price appreciation 2017 median home price
Kansas City, Mo. 13.4% 36.6% $172,098
San Jose-Sunnyvale-Santa Clara, Calif. 13.3% 81.1% $960,000
Nashville-Davidson-Mufreesboro-Franklin, Tenn. 12.5% 56.2% $224,900
Las Vegas-Henderson-Paradise, Nev. 12.3% 100.0% $230,000
Salt Lake City, Utah 10.9% 56.5% $264,000
Seattle-Tacoma-Bellevue, Wash. 10.8% 58.9% $410,000
Orlando-Kissimmee-Sanford, Fla. 10.7% 82.2% $207,000
Tampa-St. Petersburg-Clearwater, Fla. 10.7% 80.0% $180,000
Portland-Vancover-Hillsboro, Oreg.-Wash. 10.5% 65.0% $348,050
Jacksonville, Fla. 10.1% 61.8% $187,000

Source Realty Trac

Convention Center and 4 Star Hotel to KC

Just about everyone here at Alpine Kansas City is from this fine city and we are excited to see the substantial redevelopment of the downtown loop.  The area is historic and beautiful!  Each corner brings its own local flavor and flair.  Visiting KC always brings something historically new.

Kansas City finally getting something that’s been on its wish list for many years. A new four-star downtown convention center hotel is set to break ground in early 2018. The 24-story, 800-room hotel owned and operated by Loews Hotel is expected to be complete in spring 2020 and host its first convention, the 20,000-person International Shriners convention, in July of that year.

The city needs additional hotel rooms to continue to grow convention business in the future. It’s been difficult to accommodate a “city-wide” event, one which needs multiple locations across a city to house all the attendees. The new hotel adds a significant 800 upscale hotel rooms to the existing 2,000 within three blocks of the convention center, making Kansas City a much more attractive choice for meeting planners.

Conventions are a sizeable economic driver. Visit KC reported that in 2016, conventions pumped more than $246 million into the local economy. Alex Tisch, executive vice president of Loews Hotels, said the addition of the hotel will allow Visit KC to compete annually for 100 to 200 new pieces of convention business that it previously had no chance of attracting.

The $322 million development will include 75,000 square feet of meeting space; 15,450 square feet of restaurant, bar and retail; a 450-space garage; 9,913 square feet of recreational facilities; and a 4,500-square-foot terrace. It will occupy a 3-acre city block across from the Bartle Hall Grand Ballroom from Truman Road to 17th Street, between Wyandotte Street and Baltimore Avenue. An enclosed walkway will connect it to the ballroom.

While under construction, the project is expected to add 1,500 construction jobs and upon its completion, an estimated 500 full- and part-time new hotel jobs will be added. Additionally, the new hotel will prompt ancillary development for related goods and services.

Article provided by The Economic Development Corporation of Kansas City

Year End 2017 Housing Values

The Kansas City and U.S. housing markets both saw an increase in value in 2017.

The value of all homes in the U.S. market increased by $2 trillion in 2017, bringing the total value up to $31.8 trillion, according to resent data collected.

This year, all the homes in the Kansas City metro are valued at a combined $140.3 billion, an annual increase of 7.8 percent. That’s a $10.2 billion increase from the 2016 value of $130.1 billion.

In 2017, the nationwide housing market grew at its fastest pace — 6.5 percent — in the last four years, according to Zillow. In 2013, the overall value of U.S. homes increased 8 percent.

Since the lowest levels of the recession and housing bubble, the U.S. housing market has gained about $9 trillion in value.

Local renters paid a total of $2.7 billion in Kansas City, an increase of 3.2 percent. Nationwide, renters paid $485.6 billion, an $4.9 billion increase from the previous year.

For comparison, the St. Louis metro includes homes valued at $195.7 billion, an increase of 1.3 percent. St. Louis renters paid $3.1 billion in 2017, an increase of 2.7 percent from 2016.

The nation’s top housing markets are New York, Los Angeles and San Francisco, which are each include homes worth more than $1 trillion.

By Miranda Davis –  Specials Editor, Kansas City Business Journal

Are KC millennials weird?

Kansas City millennials want to own houses with yards.

They do?

A local housing survey just released says so. That’s despite zeitgeist notions that young adults generally love downtown loft-dwelling, or they favor new rental complexes with spas, rooftop pools and easy access to public transit.

“Local millennials do follow the pattern of getting married later and starting families later,” said Posten, 45, whose firm conducted the online survey mostly through Facebook and KC Live. “But once they’ve done that, those around Kansas City tend to do what earlier generations have done.”

That is, find a place of their own near good schools. Locate to Fairway, Prairie Village, Brookside, or North Kansas City in the non-scientific poll of 208 metro adults under age 37.

And, yes, buy cars — about 95 percent of area millennials drive to get around.

Millennial Chat

What most intrigued Kansas City natives, is that the local survey paints a picture much different than what many consider America’s millennial prototype.

Goldman Sachs Global Investment, among others, have concurred in studies that millennials — now the nation’s largest generation — seem generally indifferent to ownership.

“It’s not just homes: Millennials have been reluctant to buy items such as cars, music and luxury goods,” Goldman Sachs concludes “They’re turning to a new set of services that provide access to products without the burdens of ownership, giving rise to what’s being called a ‘sharing economy.’”

Not so much in Kansas City, where 48 percent of respondents in the Highline Partners poll said they owned their homes. Three out of four said they aspired to own houses in the next five years. The marketing company acknowledged that persons who responded to the survey were a bit older, more educated and wealthier — averaging $50,000 in annual income — than millennials as a whole.

“There is an affordability angle in Kansas City,” said Jones, who recently married and lives in Fairway. “I think nationwide, we’re starting to exit our urban years. The majority of my friends are looking for walkable suburbs.”

Posten attributes high marks to North Kansas City (pop. 4,300), to “partly a chicken and picklization effect.” The popular Chicken N Pickle eatery on Burlington Street, with its pickleball courts and backyard games, is among many social spots within walking distance of older, low-cost houses.

Millennial dwellers make up the largest demographic of every neighborhood within the town’s limits, said North Kansas City community development director Sara Copeland.

“Our median age has fallen incredibly since 2010,” from 40 to 36 today, Copeland said. “We don’t feel we have to do anything special to attract millennials any more than Gen-Xers or boomers. Just build a well-rounded community.”

Union Station Waterfall downtown kansas city reflection

The study’s authors serve a dozen real estate and development companies area-wide and some nationally. They said the urban-centric, ownership-averse stereotype of millennials might be drawn from marketing studies that focus on large cities on the U.S. coasts.

“We think developers are making decisions based on reading about millennials in the national press,” Posten said. “The demographic in Kansas City is distinctly different.”

If true, the city won’t be home to many of today’s young adults as they age, according to the poll: About half said they don’t want to be living here when they retire.

Courtesy of BY RICK MONTGOMERY of the KC Star

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The Plaza Lights

A local tradition for Kansas City is the Plaza Lights.  It is a 15-block holiday spectacle on the famed Country Club Plaza.  The annual event features thousands of glimmering lights that highlight the architectural features of the Spanish-inspired shopping district.  This holiday would not be the same in Kansas City without the Plaza Lights

The In’s and Out’s of a Big Profession

Property management is an unpretentious term for a profession comprised of a huge range of expertise.  Property managers need to be able to handle customer service, legal disputes, collections, tenant complaints, neighbor conflicts, repairs, maintenance personnel, vendors, inspectors, emergencies and more!  Considering the demand placed on a rental property management company, it is easy to see why Alpine Kansas City greatly benefits from strong business processes.

Alpine Kansas City places a strong focus on constant improvement and efficiency as a key factor, as well as communication and automation.

Communication between phone calls, text messages, emails and walk in traffic, can easily become chaotic if not handled correctly.  Documentation is very important.

Alpine Kansas City has found great success in having a 24/7 emergency line and ensuring all owners, tenants and staff communicate within the online portals.  This serves as documentation for all correspondence, reduces phone calls to the minimum and eliminates scattered information.  Having established communication policies ensures efficiency for staff, owners, and tenants alike.

Downloading the Propertyware app on your smart phone can expedite conversation with Alpine Kansas City.  The app is free and easy to use.

As the year comes to a close, we look to the horizon for continued successes and improvement that benefit you.

Low Supply, Rising Rent

Each market is unique and Kansas City is no exception. As housing prices have continuously risen, the market has quickly reacted with bidding wars and buyers frenzy. The KC Metro area is now beginning to give sentiment that the housing market is stabilizing for home buyers.

The inventory for available homes continues to remain low with the median price for a starter home in 2017 at $65,167, up 7% from 2012. This booming housing demand is continuing to impact how much people pay for rent.

Real estate analytics show KC a top contender in the rental market year after year. Home value forecast, appreciation and vacancy rate, along with affordability and economic environment, benefit the rental housing market.

Nationwide, the number of rental households rose to 10M in 2016, marking 12 years of consecutive growth. Growth is primarily seen in new rental construction. These recent additions are primarily aimed at the upper end of the market ($1,800- $2,400+) while existing stock of single family homes targets affordable housing ($600-$1,200).

After more than a decade of soaring demand and five years of sourcing supply, the Kansas City market remains extremely tight. Rapid growth in both renters and rents continues to fuel the ongoing demand to meet housing needs.

To Your Success…Cara

AlpineKansasCity Broker Associate, Owner

Metro K-9 for Hire

Alpine Kansas City strives for Drug Free, Crime Free housing.  As part of our ongoing training and awareness, the staff had the pleasure of training with Ray M. with Metro K-9.  Ray discussed the many needs for professional narcotics detection and beautiful and smart Phoenix gave a live demonstration of her detection techniques as Ray explained how management companies, like us, can use narcotic inspections as a deterrent for drug activity in our housing units.  Implementing random narcotic inspections at our multi and single family units will positively impact the residents.

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Inspiration Comes in Unexpected Places

Nowadays, I am working in Real Estate investing: selling houses that produce income for the buyer. Not too long ago, a young man walked into Alpine Kansas City. In one hand he held up the county record for a property we owned, and in the other, ca$h! It didn’t matter to him if the property was for sale, or what the condition, nor did he ask the price. He was seeking opportunity. Success.

After speaking with him, I learned his parents are immigrants from Mexico and he was born in LA. At 12 years old, he moved to Kansas City with his Dad, learned to swing a hammer, and work hard. Since he was old enough to earn a paycheck, he has been working at Denny’s. In his 12 year career there he has risen to manager. After working his first shift, he picks up a second at McDonald’s. With that cash, he purchases investment properties. How many? “A few,” he says.
He is hustling, making it happening, investing in his future. There is a lot to learn from from this young man, but the take away, TAKE ACTION!

What is TAKING ACTION?
Capitalizing on the opportunities, seizing responsibility, and treating success as your duty.

To your success….Eddie V.

Aquisitions Manager – Alpine Kansas City

Contact me: 816.566.5011

Partnership for Crime Free Housing

Alpine Kansas City is a proud participant in the Mid-America Crime Free program.  Mid-America Crime Free is a non-profit organization that assists the Police in keeping neighborhoods and apartment complexes free from illegal activity. The staff is certified in Advance Management Techniques and can identify and alleviate key contributors, both environmental and physiological, that help resolve common liability issues.

The partnership between the Crime Free officers and Alpine Kansas City helps to strengthen our position as local property managers and develops a strategy for continued neighborhood improvement.  Partnerships, such as these, has proven to be very successful with the reduction of criminal activity and an improved quality of life for our residents.  Our managers have been successful participants in the program for many years.

On a monthly basis, our staff attends a professional development class.  This opportunity has broadened the spectrum of my staff and the services we provide. We look to continue to learn and improve.

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Angie P. is a valued participant in the Crime Free program and has been recognized for her partnership with officers in developing and applying strategies for safe living.