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WSU Center for Real Estate Releases Kansas Housing Markets Forecast

Wichita State University Center for Real Estate released its 2024 Kansas Housing Markets Forecast. Photo courtesy of WSU.

Posted October 3, 2023

Wichita State University released its Kansas Housing Markets Forcast which shows a plateau in the state’s home sales in 2024 following a decrease in sales this year due to deprivation in inventory.

“The inventory of homes available for sale is very limited,” the director of WSU Center for Real Estate, Dr. Stan Longhofer said. “As a result, the market still favors sellers despite the softening of demand due to higher mortgage rates.”

According to the forecast, new single-family building permits in Kansas are expected to drop by 18.4 percent in 2023 to 4,700 units. Meanwhile, the price of homes continues to grow as low inventory contracts the weaker demand. Kansas home prices are expected to increase by 5.5 percent in 2023 and additionally another 3.5 percent increase in 2024.

2024 forecast highlights:

Kansas City Forecast—Home sales for the area are expected to end the year down 16.2 percent at 33,810 units, due to tight inventories coupled with higher mortgage rates. Supply constraints will continue to hamper sales activity in 2024, with sales ending the year down just slightly at 33,740 units.

Lawrence Forecast—Home sales are expected to end the year down 12.7 percent at 1,160 units. The limited inventory of homes on the market will limit the market in 2024 as well, with sales dropping by 0.9 percent to 1,150 units.

Manhattan Forecast—Home sales activity in the Manhattan-Junction City metropolitan area should fall by 7.7 percent this year to 1,790 units, a result of tight inventories and higher mortgage rates. Sales are projected to rebound in 2024, rising 5 percent to 1,880 units.

Topeka Forecast—Home sales are expected to fall by 8.4 percent this year to 2,890 units due largely to a shortage of inventory. Supply constraints will continue to decrease sales activity in 2024, with sales ending the year down 1.7 percent to 2,840 units.

Wichita Forecast—Weaker demand and tight inventories are impeding sales growth in the Wichita area. Sales should end the year down 10.4 percent at 9,470 units and continue to fall in 2024 to 9,390 units.