Kansas City, MO, January 27, 2026

Kansas City’s housing market is witnessing significant changes as inventory levels increase, providing more options for homebuyers. The market ended on a positive note, with active listings rising by 15.6% year-over-year and a continued appreciation in home prices. The median sales price has reached $320,711, reflecting a 5.2% increase. As more homes become available, buyers may find greater opportunities, indicating a gradual shift towards market equilibrium. The city’s robust economic development underpins these trends, making Kansas City a promising place for real estate investment.

Kansas City, MO

Kansas City’s Housing Market: Inventory Rises, Opportunities Emerge

Kansas City’s real estate market concluded 2025 with dynamic shifts, showcasing a significant uptick in available homes and continued price appreciation. This evolving landscape offers new avenues for residents and investors alike, signaling a resilient market driven by local economic growth and entrepreneurial spirit.

The city’s housing sector reflects the broader economic vibrancy of the region, where a proactive approach to development and a supportive environment for businesses contribute to steady population growth and demand for housing. As inventory levels improve, Kansas City continues to solidify its position as an attractive market, balancing seller advantages with increasing buyer opportunities, a testament to thoughtful market responses and sustained community investment.

Active Listings See Notable Increase

In December, Kansas City experienced a noteworthy increase in active listings, with the count rising by 15.6% year-over-year to 1,588 homes. This surge in available properties indicates an expanding market that provides more choices for prospective homeowners. Across the broader Kansas City metro area, the inventory of homes available as of December totaled 6,934 units, representing a 2.8% increase year-over-year for 2025. Breaking this down further for December 2025, inventory for existing homes within the metro increased by 3.2%, while new construction homes saw a 1.5% rise in available listings. These figures collectively point to a growing supply, offering a more varied selection for buyers.

Nationwide, the trend of increasing inventory is also evident, particularly in the starter-home segment. Active listings of starter homes rose by 13% year over year across the country, pushing this inventory to its highest October level since 2016.

Steady Price Appreciation Amidst Growing Supply

Despite the rise in inventory, home values in the Kansas City metro area continued their upward trajectory throughout 2025. The median sales price for the full year 2025 reached $320,711, an increase of 5.2% year-over-year. The average sales price saw an even steeper climb, reaching $381,970, up 6.8% over the same period. For December 2025 specifically, existing homes in the Kansas City metro experienced a 3.1% increase in their median sales price, reaching $299,000. New construction homes saw a 4.0% rise, with a median sales price of $519,804.

Sales activity remained robust, with 37,505 homes sold in the Kansas City metro area throughout 2025, marking a 2.9% increase year-over-year. December 2025 alone saw a 3.2% increase in closed sales compared to December 2024. Sellers in the Kansas City metro received an average of 97.4% of their original list price in 2025, a figure that stood at 95.7% for December. This indicates a market that continues to favor sellers, though buyers are gaining a more stable footing. Comparatively, the Midwest region overall is one of the few areas nationwide experiencing year-over-year sales growth.

Market Pace and Buyer Opportunities

The pace of the Kansas City metro market saw a slight moderation in 2025, with homes spending an annual average of 42 days on the market, an increase of 5.0% compared to 2024. In December, the days on market for existing homes increased by 10.3%, while new construction homes saw a marginal increase of 0.9%. While this represents a slower pace than the previous year’s rapid sales, most realistically priced homes in the Kansas City metro are still selling within 30 to 45 days, often achieving around 100% of their list price.

This evolving market environment signals improving conditions for buyers. With more homes on the market and a slightly extended selling period, buyers now have increased breathing room to evaluate properties and negotiate effectively, moving away from the heightened competition of prior years. The months’ supply of inventory in the Kansas City metro remained flat at 2.2 months in December, which, while still considered a seller’s market (a balanced market typically requires 4-6 months’ supply), suggests a gradual shift towards greater equilibrium.

Kansas City’s Economic Foundation and Future Outlook

Kansas City continues to be recognized for its strong economic fundamentals and promising future in the real estate sector. It has been named among the top 10 U.S. markets for 2026 by the National Association of Realtors and Zillow, lauded for its blend of affordability, job growth, and urban appeal. The metro area’s diverse economic base, spanning logistics, technology, and healthcare sectors, is a key driver of steady population growth and sustained demand for housing.

Looking ahead to 2026, forecasts project continued home price appreciation of 3-4% across the Kansas City metro. Mortgage rates are anticipated to hover around 6-6.3% for most of 2026 and 2027, a more favorable environment that should encourage more buyers to enter the market. However, inventory could remain relatively tight, particularly if events like the World Cup influence some homeowners to temporarily remove properties from the market in the spring. The city’s ongoing commitment to infrastructure improvements and urban revitalization projects further strengthens the outlook for long-term property appreciation, creating attractive investment opportunities, with projected rental yields in emerging neighborhoods ranging from 8-12%.

Conclusion

Kansas City’s real estate market closed 2025 with a healthy increase in inventory, offering more choices for those looking to buy a home. Despite this growth in supply, property values continued to appreciate, reflecting the underlying strength of the local economy and the ongoing appeal of the Kansas City metro. The slight moderation in market speed provides a welcome opportunity for buyers, while sellers continue to benefit from strong demand. As we look towards 2026, Kansas City’s diversified economy, coupled with strategic urban development and projected stable mortgage rates, paints a picture of sustained growth and resilience, reinforcing the metro’s position as a vibrant place to live and invest. Engaging with Kansas City’s local businesses and community initiatives will continue to be vital in fostering this positive economic trajectory.

Frequently Asked Questions

What was the increase in active listings in Kansas City in December 2025?

In December, Kansas City experienced a remarkable increase in active listings, with the count rising by 15.6% year-over-year to 1,588 homes.

What was the median sales price for homes in the Kansas City metro area in 2025?

The median sales price for the full year 2025 in the Kansas City metro area reached $320,711, an increase of 5.2% year-over-year.

How many homes were available in the Kansas City metro as of December 2025?

The inventory of homes available in the Kansas City metro area as of December 2025 totaled 6,934 units.

What was the average number of days homes spent on the market in the Kansas City metro in 2025?

Homes in the Kansas City metro area spent an annual average of 42 days on the market in 2025.

What are the home price predictions for the Kansas City metro in 2026?

Forecasts project home price appreciation of 3-4% across the Kansas City metro in 2026.

What are the predicted mortgage rates for Kansas City in 2026?

Fannie Mae predicts mortgage rates around 6% for most of 2026 and 2027, while national experts expect a roughly 6.3% average mortgage rate in 2026.

Kansas City Real Estate Market Overview (December 2025)

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Author: STAFF HERE KANSAS CITY WRITER

The KANSAS CITY STAFF WRITER represents the experienced team at HEREKansasCity.com, your go-to source for actionable local news and information in Kansas City, Jackson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as American Royal World Series of Barbecue, Dia De Los Muertos, and Planet Anime Kansas City. Our coverage extends to key organizations like the Greater Kansas City Chamber of Commerce and United Way of Greater Kansas City, plus leading businesses in healthcare, finance, and entertainment that power the local economy such as Children's Mercy Hospital, Government Employees Health Association, and AMC Entertainment. As part of the broader HERE network, including HEREStLouis.com, we provide comprehensive, credible insights into Missouri's dynamic landscape.