Think-Realty-Magazine-August-2020

MARKET & TRENDS

HOT MARKET

Worth theWait IN KANSAS CITY, SLOW AND STEADY WINS THE RACE

K A N S A S C I T Y

by Fred Heigold III

POPULATION GROWTH The 2018 Census/ACS data shows the Kansas City MSA is the 31st largest MSA in the U.S. with just over 2.14 million residents. This metro area added nearly 15,500 residents between 2017 and 2018 (a .75 per - cent increase) and in the previous five years increased 4.4 percent with over 90,000 new residents. JOB GROWTHAND INCOME According to the Bureau of Labor Statistics (BLS) Job Report (con- taining data through April 2020), the Kansas City MSA employment mar- ket had been steadily growing with a 10-year gain of 120,000 positions or

RentRange®, an industry lead- er in market data and analytics for the single-family rental (SFR) housing industry, found in its re - cent data report that the Kansas City, KS-MO Metropolitan Statis- tical Area (Kansas City MSA) is a mid-to-large sized market which has been steadily growing within its means. The market is one of the most affordable in the U.S. and offers stability in the uncer- tain economic environment with low downside risk. Additionally, the Kansas City market currently offers a balance of appreciating properties with good cashflow for buy and hold investors.

a +12.4 percent increase in total jobs through February 2020. Job growth peaked in 2019 yet has been holding steady into the beginning of 2020. April data shows the Kansas City metro employment market has taken a big hit in many job categories, similar to the rest of the U.S. A total of 113,000 jobs have been lost in the Kansas City metro between February and April. The May 2020 National Jobs Report was better than anticipated, showing hope for the labor mar- ket recovery as economies reopen. National statistics indicate the worst is over with a 2.3 percent (2.5M) net increase and a 17 percent bounce in leisure and hospitality sector.

Job categories in the Kansas City MSA through April 2020 are as follows.

APRIL 2020 EMPLOYMENT

5 YEAR % CHANGE

INDUSTRY GROUP

SHARE OF JOBS

1 YEAR CHANGE

1 YEAR % CHANGE 5 YEAR CHANGE

Trade, Transportation, and Utilities

204,400

20.8%

(12,500)

-5.76%

2,400

1.19%

Professional and Business Services

178,100

18.2%

(13,900)

-7.24%

(4,400)

-2.41%

Government

148,900

15.2%

(2,000)

-1.33%

(1,100)

-0.73%

Education and Health Services

144,100

14.7%

(12,900)

-8.22%

(2,800)

-1.91%

Financial Activities

76,400

7.8%

(1,900)

-2.43%

(1,300)

-1.67%

65,000

6.6%

(13,000)

-16.67%

(6,800)

-9.47%

Manufacturing

56,600

5.8%

(55,000)

-49.28%

(47,300)

-45.52%

Leisure and Hospitality

53,300

5.4%

1,200

2.30%

8,000

17.66%

Mining, Logging and Construction

38,400

3.9%

(4,700)

-10.90%

(2,900)

-7.02%

Other Services

15,200

1.6%

(1,000)

-6.17%

(5,700)

-27.27%

Information

TOTALS

980,400

(113,000)

(61,900)

74 | think realty magazine :: august 2020

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