Is it more expensive to rent or to own a home in Kansas City? How monthly costs compare

If you have noticed the cost of living rising in Kansas City in recent years, you’re not alone.

Prices on everything from housing to groceries have climbed significantly since the COVID-19 pandemic began, and many residents worry about being priced out of their homes by rising property taxes, utility bills or skyrocketing rents.

If local rents are becoming a financial burden, you may be considering purchasing a home in order to reduce your monthly payments and build wealth. But will homeownership really save you money? Here’s what to know about the relative costs of renting and buying in Kansas City.

Is it cheaper to rent or to buy in Kansas City?

The fluctuating housing market causes Kansas City area rents and home prices alike to change constantly — but a peek at recent data can offer a clue about the relative costs of renting and buying.

A Realtor.com report recently found that, as of February, the Kansas City area’s median rent is around $1,319 per month. That’s well below the national median of $1,708.

Home and apartment listing site Zillow also tracks fluctuating housing prices, including monthly mortgage payments that include principal, interest, taxes and insurance, assuming a 10% down payment.

In February, that monthly mortgage cost came out to $1,846 per month in the Kansas City metro area. This expense was also lower than the U.S. average of $2,188 per month.

In terms of monthly payments alone, that means paying a mortgage in the Kansas City area is 40% more expensive than paying rent. Homeownership also assumes the ability to make a down payment on a home, which many residents can’t afford.

In March, Realtor.com said that renting is cheaper than homeownership in all 50 of the largest metro areas in the country.

How about the rest of Missouri and Kansas?

Earlier this month, Yahoo Finance took a look at the median rents and mortgage payments in each of the 50 states to see which option would give residents a cheaper deal.

In Kansas, the average monthly rent comes out to around $1,240, while the average monthly mortgage payment is around $1,052. That makes homeownership the more affordable option in Kansas overall — although this may change depending on where in the state you live.

In Missouri, prices are higher in both categories. The average monthly rent is around $1,364, while the average monthly mortgage payment is around $1,411. That means that, generally, renting in Missouri is often cheaper than buying a home.

Do you have more questions about the cost of living in Kansas City? Ask the Service Journalism team at kcq@kcstar.com.