Housing Affordability: What It Means for Kansas City Missouri  and Overland Park, Kansas Buyers in 2024

For the first time since 2020, housing affordability is showing signs of improvement. This is largely due to a drop in mortgage rates, which have dipped from 7.07% to 6.09% over the past year. While this is promising news for prospective buyers in Kansas City and Overland Park, affordability remains a significant challenge for many in the area.

Nationally, buyers now need to earn about $116,000 annually to afford a typical home, down 1.4% from last year. However, the average household income in the U.S. is around $84,000, leaving many buyers—especially those in growing markets like KC Metro—navigating a gap between their earnings and home prices. This means that for many buyers in Johnson County, Jackson County, and beyond, compromise has become a necessity. But with the right approach, homeownership is still very much within reach.

Let’s take a look at the most common compromises homebuyers are making in 2024 and how you can make smart decisions that help you land a home you love without sacrificing too much on your wish list.

Top Compromises Kansas City Buyers Are Making

In a recent survey conducted by Homes.com and Apartment Therapy, 676 buyers and real estate professionals shared their experiences with home buying in today’s market. The survey highlighted several compromises that buyers are making, including:

Condos and Townhomes are Gaining Popularity

With single-family homes becoming less attainable, many buyers are shifting their focus to other property types. In Kansas City, Overland Park, and surrounding areas, buyers with a budget of $500,000 or less are now considering condos and townhomes as alternatives. Approximately 17% of buyers are looking at condos, while 15% are exploring townhomes as an option.

While these property types may not offer the spacious yard or privacy of a traditional home, they often come with perks like low-maintenance living and shared amenities, such as pools or fitness centers. However, it’s important to consider homeowners association (HOA) fees, which can impact your monthly budget.

Widening the Search Radius

Location is always a top priority for homebuyers, but with rising prices in desirable neighborhoods, many buyers are willing to expand their search areas. According to the survey, 21% of recent buyers purchased outside their ideal neighborhood, while one-third of current buyers are considering doing the same.

Being open to exploring different areas within the KC Metro—whether it’s venturing into more suburban parts of Overland Park or looking at up-and-coming neighborhoods in Kansas City, Missouri—can reveal more affordable options without compromising on key features.

How to Make Smart Compromises Without Regret

Knowing where to compromise — and where to stand firm — is essential for navigating the housing market in 2024. Here are a few tips to help you make informed decisions:

1. Prioritize What Can’t Be Changed

While cosmetic features like paint colors and flooring can be updated after purchase, it’s more difficult to change things like a home’s layout, structure, or location. Focus on non-negotiables like a solid foundation, functional layout, and proximity to work or schools. These are the aspects that will impact your day-to-day living.

2. Plan for Your Future Needs

It’s essential to think about how a property will suit your lifestyle not only today but in the future. For example, if you’re considering a condo in the city but planning to start a family, you may need more space sooner than you think. It’s a good idea to think five to ten years ahead when evaluating your needs.

3. Stick to Your Budget

With homes across the KC Metro becoming more expensive, it can be tempting to stretch your budget. However, overextending yourself financially can lead to unnecessary stress down the road. Be sure to factor in not only your mortgage but also taxes, insurance, and any potential HOA fees.

By staying within your budget, you’ll have more flexibility to handle any unexpected costs that arise once you’ve moved into your new home.

Compromise Doesn’t Mean Settling

Making smart compromises doesn’t mean you have to settle for less than what you want. By focusing on what truly matters—like structural integrity, location, and your long-term goals—you can still find a home that meets your needs and brings you joy. And don’t forget, working with an experienced local real estate agent can help you make confident, informed decisions throughout the home-buying process.

In the end, it’s all about finding the right balance between compromise and fulfillment. With careful planning and the right guidance, your next home in Kansas City or Overland Park could be the perfect fit.

For more details about real estate, don't hesitate to reach out. 

Genia Birchfield

RE/MAX Elite

816-651-5591 and 816-373-8400