Is KC employers’ recruiting edge—housing costs—in peril?

It’s a question worth asking for companies in recruiting mode as new figures show the Kansas City market posted the second-highest annual sales price increase in the U.S. in October. That’s according to the realty data experts at Zillow, whose latest report issued early this month showed that the median home sales price in Kansas City the final week of October was $253,325—a monstrous year-over-year gain from slightly more than $214,000 in October 2019.

The Kansas City housing market remains extraordinarily hot, the firm says, even in the context of a national market that is heading into winter with way more steam than normal. Kansas City is also tied for the shortest typical time on market among top-50 metros.

          Among the firm’s other findings:

• Homes typically went under contract after just six days – tied for the fastest pace among major metros. That was a full 16 days faster than last year. 
• Even though things remain smoking hot, those weekly figures were down 5.3 percent for newly pending sales.
• Total inventory is now down 41.4 percent year over year, and down 2.9 percent from the previous week.
• The median list price is up 11.8 percent year over year to $338,225.

       Housing prices here are a big driver of the so-called Kansas City Advantage, which produces a lower overall cost of living for employees and serves as a major attraction for job-seekers. Other savings, in areas like transportation, utilities and health care costs, help offset slightly higher grocery costs. Nationwide, Zillow said, the housing market looks remarkably robust as we head into what is typically the slowest time of year for sales. The trend of accelerating price growth over 2019 that began in May carried on, expanding the gaps over last year for median list and sale prices alike. Pending sales are easing down but still far outpace 2019. 

            The median price of a home in Kansas City ranked this area 27th out of 51 studied by Zillow.