Rent vs buy in Kansas
Renting wins in 7 of the 9 cities with 50,000+ residents, and 2 are toss-ups, based on today's numbers across 7 years.
Renting or buying in Kansas's cities
| City | Verdict | 7-year result | Break-even (up to 30 yrs) | Typical home | Rent /mo |
|---|---|---|---|---|---|
| Topeka | Toss-up | toss-up, renting ahead by $2k | year 8 | $195,299 | $1,249 |
Sources: Zillow Home Value and Observed Rent indexes. Verdicts follow our rent vs buy method, with 20% down, over 7 years.
Kansas, in our view
Over 7 years, renting comes out ahead in 7 of Kansas's 9 largest cities. The remaining 2 come out close to even, since home prices remain low. A typical home in Kansas City costs $199,779, while rent runs $1,322 each month. A $1k gap over 7 years is what separates the two, and break even lands in year 7. Topeka shows a $2k gap, with rent of $1,249 against a home priced at $195,299, so break even lands in year 8.
Everywhere else, renting comes out ahead. A home in Wichita costs $204,831 and rents for $1,159, so renting saves you $14k, and break-even comes in year 12. Where prices are higher, your gap grows wider. A $480,952 home in Overland Park rents for $1,754, saving you $103k over 7 years by renting. Break-even in 30 years doesn't happen there, and it doesn't in Lenexa, Shawnee, Olathe and Manhattan either.
Even with a $246k typical home value, the high costs of owning hurt you. Property tax comes to 1.29%, above the 0.94% US rate. Homeowners insurance runs $1,757 a year, compared with $1,308 nationally. The median rent here is $1,060 a month, compared with $1,413 across the US, and 33% of households rent, versus 35% nationwide. Over the last 10 years, home prices grew 6.6% a year, outpacing the 4% a year pace seen since 1995.
Our take: we'd only buy in Kansas with a 7 year stay in Kansas City or an 8 year stay in Topeka. You're better off renting in each of the other 7 cities.