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If you want to buy a Kansas City home, your salary and savings play a huge role in how much house you can afford.  How much money you make determines your housing budget, down payment and loan amount. There are all sorts of calculators to help you decide how much house you can afford, but one study breaks down the actual salary you need to buy a home in Kansas City!  (Spoiler alert– it’s much less than other major cities!)

How much house can I afford?

Wanting to buy a Kansas City home? A recent study by HSH, a publisher of information on mortgages and consumer loans, shows the salary you need to afford a home in the 50 largest metros, including Kansas City. The study bases its numbers on current interest rates, median home prices, available property tax and homeowners insurance costs.

Kansas City is in an unprecedented “seller’s market”, with home prices climbing as the number of homes for sale continues to drop. It’s the basic law of supply and demand. According to data from the Kansas City Association of Realtors, the average sales price of a home in 2020 for Jackson County — including Kansas City — climbed to $231,147 in 2020. 

But home buyers in Kansas City need not be discouraged!  HSH found they still need a lower salary than the national average to purchase a home.  That’s because even with the housing shortage and rising home prices, Kansas City still ranks among the most affordable communities in the country.

Want to see the numbers for yourself?  Check out NerdWallet’s house affordability calculator. It breaks down how far your dollar will stretch based on where you’re looking to buy, your household income, down payment, monthly payments for your debt and your credit score.

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Bottom line, according to HSH, Kansas City is one of the least expensive metros in the United States! Whether you’re looking for a new construction home or a resale, there’s something for everyone. A Midwest town that gets lots of national accolades, there are housing opportunities for every budget in Kansas City.

Check out our comprehensive guide to the suburbs of Kansas City, and the features of each community.

Related link:
Relocating to Kansas City: How to make the most of our move
Why Blue Springs Schools are consistently rising to the top

Saving on mortgage rates

Another big bonus for home buyers in Kansas City? Even though housing prices continue to rise, their purchasing power has actually never been stronger. That’s because interest rates are at all time lows! In Kansas City, many lenders are offering 30-year fixed rate mortgages for less than 3 percent! Of course, mortgage rates constantly change, and they’re based on your credit, down payment and mortgage length.

A great way to maximize your money even more is to shop around for mortgage rates.  Spending just a little time up front can save you big money down the road.  The difference of just half percentage point can save you thousands of dollars in just a few years!

Unfortunately, the Consumer Financial Protection Bureau found nearly half of home buyers don’t shop for a mortgage. Don’t make that expensive mistake!  Many lenders offer easy online loan applications you can fill out in the comfort and safety of your own home — no need to meet face to face!

To make sure you get the best and most accurate rate quotes as quickly as possible, gather up your records ahead of time. Here’s a great checklist of financial documents you’ll need for pre-approval.  

Remember– you’ll want to do this before you start your home search.  You’ll need that up to date preapproval in hand when you make an offer on your dream home! In today’s market, you may be competing with several buyers wanting the same property, and many sellers won’t even consider your offer unless there’s a preapproval letter attached.   

Finally, Don’t be intimidated by the preapproval process, and don’t believe the many myths flying around about how much money you need to purchase a home.  A recent survey of potential millennial buyers found a majority thought they needed a 20% down payment to buy a home. NOT TRUE! In fact, some conventional loan products require as little as 3% down, FHA loans as little as 3.5% down, and qualified VA buyers can purchase with 0% down.  There are also down payment assistance programs available for certain buyers. Make sure you ask your Realtor®  or lender about what options work best for you. 

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Kansas City housing market

The Kansas City housing market is a strong seller’s market. That’s why you need a strong Realtor® who will show you all the options available — like new construction.  The Sally Moore Real Estate Team is marketing 10 new home communities, and we have the inside scoop on how to make your housing dreams a reality when resale options seem so few and far between.  

As a long-time Kansas City area resident, I know the area well. With 16 years of new construction experience, I know where to find the best options for you that you won’t be able to find simply searching online. Together, my team will find the perfect neighborhood for you! Plus– if you’re a first time home buyer, we’ll arm you with the knowledge you need to know, from 8 smart money moves to paying less for homeowner’s insurance. We are real estate matchmakers. Let us know how we can help.

Sally Moore

Sally Moore

Selling and buying homes is in my blood! I flipped and rehabbed homes for several years before finally becoming a Realtor®. From representing builders in new construction communities to staging and selling resale homes, I have devoted more than 18 years to helping my clients achieve their real estate dreams! My team of seasoned agents would love to help you, too! Let us show you how you can get “Moore” for your money with the Sally Moore Real Estate Team!