A new study by First American Financial Corp. reveals that nearly 20% of homeowners in the Kansas City metro area are spending more than 30% of their income on housing, officially classifying them as cost-burdened.
That’s roughly 112,000 households, and the number is rising fast.
What’s Driving the Trend?
From 2019 to 2023, the number of cost-burdened homeowners in KC rose by 30,000 — a 4% increase, outpacing St. Louis and many comparable markets.
- Nationally: 22.2% of homeowners are cost-burdened
- 1 in 10 homeowners is severely burdened (spending 50%+ of income)
- Younger buyers are stretching budgets to enter the market
- Senior homeowners are feeling rising taxes, insurance, and utilities
In Kansas City, seniors now make up 25% of cost-burdened households.
What This Means for Investors & Developers
- Downsizing trends = potential inventory release
- Rental demand likely to increase
- Affordable, energy-efficient, or workforce housing is in demand
- Cost pressure data can guide smart location-based investing
Our Approach at Wardell & Holmes
We’re tracking affordability and cost-burden data closely to help our investor clients:
- Pinpoint high-pressure areas for investment
- Strategize development that meets today’s income-to-housing realities
- Build smarter, future-ready portfolios
Contact Us Today
BROKER: Andrea WARDELL
Andrea@wardellholmes.com
Phone: 816-806-9492
