From April to May, apartments located near the city center of Kansas City experienced a heavy rent increase of 7%. This rent increase was large enough to get this city ranked 3rd in the nation on Wisconsin-based ABODO’s list for the largest rent increases for 1-bedroom units.
Kansas city residents will have to shell out more towards paying rent, but there is also a ripple effect happening for real estate investors. To preserve their higher yields, investors are strategically moving out to smaller secondary markets. These areas are less competitive, and therefore provide higher returns for investors.
In addition, areas outside of Kansas City provide residents with better schools at a more affordable rate. Our Research Services team uncovered that Blue Springs, MO, outside of Kansas City, is ranked number #1 for “the most affordable zip code (64014) with the best schools.” Another Missouri zip code on this list is Southwest St. Louis thats ranks two spots below, at third place.
The quality of schools in the area is a major driver to attract renters, especially those with families. Investors should keep this in mind when deciding on where to invest, as it’s been shown that renters are willing to pay more to be located in neighborhoods near highly ranked schools. To learn more about other economic factors that influence the rental market, speak to one of our Solutions Managers.