🏠 Stat to go: Renting vs. owning
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Renting in the Kansas City metro saves you more than $15,000 a year compared to buying, and that doesn't count repairs, closing costs or the other bills that come with owning.
Why it matters: Rents are rising fast in KC, but home prices are rising even faster, and Zillow says the gap between renting and owning is widening.
By the numbers: The typical KC renter pays around $1,530 a month, while the typical new buyer pays around $2,800 for their mortgage, insurance and taxes.
- That's a difference of $1,270 a month.
- KC rents are up 3.6% from a year ago. On the buying side, the metro's median home price climbed 3.9% to just under $350,000 in July, according to the Kansas City Regional Association of Realtors.
Zoom out: Renting is cheaper than buying in all 50 of the largest U.S. metros, and the gap is growing. The typical buyer's monthly cost rose $140 over the past six months, while rent went up just $32.
- In coastal markets, the difference is far bigger than KC's, with renters in cities like San Jose saving nearly $7,900 a month over buying.
💭 Abbey's thought bubble: As a Gen Zer who'd like to own a home someday, I hurt my own feelings writing this piece.
The intrigue: Zillow says a KC renter who invests the $1,270 a month instead of spending it could earn around $380 in returns in the first year alone.
The bottom line: If you plan to be in KC for five years or less, Zillow's math says rent. Stay longer, and the equity you build starts to shift the calculation toward buying.