Wichita home prices will rise by nearly 8 percent next year, slightly more than the statewide average, according to the 2025 Kansas Housing Markets Forecast series published by the Wichita State University Center for Real Estate.
“Inventories of homes available for sale remain quite tight,” said Dr. Stan Longhofer, director of the WSU Center for Real Estate, said in a news release. “At the same time, buyers remain cautious in the face of higher home prices and financing costs. As a result, housing markets across the state are more balanced than they have been in years.”
Longhofer was to the present the forecast Thursday (Oct. 3) at the Kansas Association of Realtors Annual Conference at the Doubletree by Hilton hotel in Overland Park. The 2025 Kansas Housing Markets Forecast series reviews current housing market conditions in the major markets across the state and forecasts housing market activity through the end of 2025. The series also includes Housing Outlooks for 10 smaller markets across the state.
Copies of all the forecast and outlook publications in the series can be found at wichita.edu/realestate.
Highlights of the 2025 forecast include the following:
Kansas Statewide Forecast
- Home sales – After falling for the past two years in the face of rising mortgage rates, home sales activity across Kansas has stabilized during the first half of 2024. Sales across the state are expected to fall slightly this year and then rebound in 2025, rising 3.3% to 36,080 units.
- Construction – New single-family building permits in Kansas are expected to rise by 5% this year to 5,175 units. Permitting activity should decline slightly in 2025, dropping 1.6% to 5,090 units.
- Home prices – Kansas home values will continue to appreciate at an above-normal rate for the foreseeable future, rising 7.9% this year, followed by another 6% gain in 2025.
Wichita Forecast
- Home sales – Wichita area home sales should end the year down slightly at 9,360 units before rebounding slightly in 2025, rising 2% to 9,550 units.
- Construction – New home construction activity in the Wichita area is expected to end the year virtually unchanged from 2023 at 1,255 units. Activity should rise modestly in 2025, ending the year up 4.9% at 1,285 units.
- Home prices – Wichita home price appreciation remains quite strong due to a lack of supply. While we won’t see the double-digit gains we had in recent years, Wichita home prices are projected to rise by 8% this year, followed by another 7.7% increase in 2025.
Kansas City Forecast
- Home sales – Total homes sales in the Kansas City area are expected to decline slightly this year in the face of the limited inventories of homes available for sale. Sales activity should rebound in 2025, rising 4.4% to 36,300 units.
- Construction – New home construction activity in the Kansas City metropolitan area is projected to rise by 3.2% this year to 4,435 units and then rise again modestly in 2025 to 4,465 units.
- Home prices – Although home price appreciation has slowed dramatically from the stunning rates posted in 2021 and 2022, it remains quite strong by historical standards. Given the tight supply conditions, we project that Kansas City home values will end the year up 6% in 2024 and then rise another 5.6% in 2025.
Lawrence Forecast
- Home sales – Lawrence area home sales are expected to increase by 5.2% this year to 1,090 units. While demand will remain strong in 2025, the lack of supply will constrain the market. As a result, sales should end the year down slightly, dropping to 1,080 units.
- Construction – Across the Lawrence metropolitan area, new single-family building permits are expected end the year at 240 units, an increase of 25.7% compared to 2023. Construction activity should level off in 2025, finishing the year down slightly at 235 units.
- Home prices – As the competitive position of the market has become more balanced, the rapid home price gains seen over the past few years have slowed. Lawrence area home values are projected to end the year up 2.4% in 2024 and then increase by a healthy 3.4% in 2025.
Manhattan Forecast
- Home sales – Home sale activity across the Manhattan metropolitan area should end 2024 essentially unchanged from last year at 1,620 units. The market should pick up in 2025, with sales rising by 11.1% to 1,800 units.
- Construction – We project that 250 total single-family building permits will be issued in the Manhattan metropolitan area this year, an increase of 16.3% compared to 2023. Permitting activity should remain fairly level in 2025, rising modestly to 255 units.
- Home prices – Home price appreciation in the Manhattan metropolitan area remains remarkably strong due to tight inventories. As a result, Manhattan area home values should end the year up 7.7% in 2024, followed by an additional 4.9% increase in 2025.
Topeka Forecast
- Home sales – Home sales activity in the Topeka area is expected to end the year at 2,860 units, a 2.3% increase compared to 2023. While demand will remain strong in 2025, the lack of supply will constrain the market. As a result, sales should end the year down slightly, dropping to 2,840 units.
- Construction – New home construction in the Topeka metropolitan area is projected to increase to 355 units this year. Construction activity should level off in 2025, ending the year up slightly at 365 units.
- Home prices – Although home price appreciation has slowed dramatically from the stunning rates posted in 2021 and 2022, it remains quite strong by historical standards. Given the tight supply conditions, Topeka home values are forecasted to end the year up 5.6% in 2024 and then rise another 4.2% in 2025.
