2025 marks a significant year for property developments in Kansas City, with numerous residential and commercial projects set to redefine the city’s landscapes. New construction projects in Kansas City are planned across various neighborhoods, accommodating the growing demand for both living and business spaces. Urban transformation and the expansion of infrastructural amenities are pivotal in catering to the population’s needs, whose growth aligns with the regional development plans. Noteworthy projects include the renovation of Barney Allis Plaza and the development of Berkley Riverfront, integrating both urban living and recreational activities. Read more about Kansas City developments to see how these changes will shape the city’s future1.
Key Takeaways
Kansas City will witness numerous property developments in 2025.
Urban transformation plans include infrastructure and amenity expansions.
The renovation of Barney Allis Plaza and Berkley Riverfront are major highlights1.
Projects aim to accommodate the increasing population and its demands.
The blend of residential and commercial projects promise a vibrant urban ecosystem.
Introduction to Property Developments in Kansas City
Kansas City stands on the brink of a major transformation in its property development sector. With a substantial focus on innovative housing solutions and state-of-the-art commercial establishments, the city’s landscape is set to change dramatically. This evolution is driven by strategic development plans aimed at sustainable growth, incorporating a mix of residential zoning classifications like R-80 for large-lot single-family homes, R-7.5 for medium-density residential, and R-5 for higher-density residential areas including multi-family buildings2. Compliance with these zoning classifications and development standards is crucial for securing building permits and aligning developments with city planning goals2.
The city’s planned developments emphasize creating organized residential communities with suitable density and height standards while addressing key environmental factors2. This includes enforcing quality and safety benchmarks, incorporating stormwater management, and ensuring sustainable neighborhoods through regulations on water runoff, drainage, utility connections, and street access2. Kansas City’s focus on real estate development opens numerous opportunities for property investment, appealing to both local and national investors.
The development process in Kansas City involves multiple steps, starting with the submission of detailed plans, public hearings for community feedback, and securing necessary permits upon approval2. Specific area developments have regulations that balance urban living, mixed-use developments, and rural land protection, supporting comprehensive city planning objectives2. With these meticulous planning and regulatory procedures in place, Kansas City is poised to attract significant property investment and foster economic expansion.
One notable example of property investment in Kansas City is the Jazz Hill Apartments project, a nearly $38 million renovation initiative facilitated by Freddie Mac to develop a 181-unit affordable housing community3. This project underscores the city’s commitment to enhancing affordable housing options, with each unit undergoing substantial renovations costing over $200,0003. In 2023 alone, Freddie Mac Multifamily funded a record $2.6 billion in forward conversions to support over 21,000 new or rehabilitated affordable units, demonstrating the robust growth prospects in Kansas City’s property development sector3.
The Village West of Holmes Project
The Village West of Holmes Project is a prime example of the innovative residential property developments Kansas City has to offer. Catering to modern lifestyles, this development will feature 19 new single-family homes, each boasting contemporary designs.
Project Overview
Situated at 12800 Holmes Road, the construction of this project is set to commence in the fall. Residents can look forward to the unveiling of a model home in the spring of 2025. With its combination of style and comfort, this project epitomizes modern living in Kansas City.
Location and Nearby Amenities
The development’s prime location provides easy access to an array of city amenities. Just a stone’s throw away are Minor Park and the Blue River Parkway Trail, offering attractive recreational spaces for families. These features make the new single-family homes in this project particularly appealing.
This development will not only enhance the local community but also contribute to Kansas City’s growing status in the residential market sector. Comparatively, Kansas City boasts a variety of projects such as the WaterSide Residences on Quivira with 377 units under lease-up and the Promontory with 420 units under construction4. These statistics underscore the city’s capacity and commitment to meeting housing demands.
In related trends, the Arrowhead Lakes development plans to introduce 549 single-family homes, reflecting the broader push for upscale accommodations5. The Village West of Holmes is set to align with this trend, tapping into the modern demands of homebuyers in Kansas City.
Real Estate Development Trends 2025
The real estate market in Kansas City has been exhibiting a variety of interesting trends leading into 2025. With a rise in median home values, increased rental demand, and burgeoning new developments, the landscape is evolving to meet the needs of a growing population. This section delves into both statewide and local trends to provide a comprehensive view of where Kansas City’s real estate market is headed.
Statewide and Local Trends
Statewide, home prices in Kansas are projected to rise by 6% in 2025, which is a notable increase driven by the tight inventory and a cautious buyer market. The average home value in Kansas stands at approximately $230,021, showing a 4.9% increase over the previous year6. In Kansas, homes move quickly, with an average of just 11 days on the market before going pending6. The inventory of homes has grown by 9.3%, with 9,344 homes available, and the median days on the market for homes for sale in Kansas is 22 days7.
In Kansas City, the average sales price is $368,166, reflecting a 4.3% increase from the previous year8. Kansas City also shows an improvement in market balance with closed sales increasing by 4.9%, reaching 3,5398. However, pending sales have slightly declined by 0.4%8. Specific neighborhoods like Northeast Industrial and River Market have seen varying levels of price appreciation, indicative of localized shifts within the broader market8.
Impact on Kansas City
The impact on Kansas City’s real estate development trends cannot be understated. The rise in average home prices combined with the steady appreciation rates is leading to a more predictable and balanced market for both investors and homeowners6. With a current median home sale price in Kansas of $290,600 and homes spending an average of 22 days on the market, the city’s landscape for property development services Kansas City remains robust7. As the months of inventory increase to 2.2 and total inventory rises to 6,590, the city’s market is transitioning towards stability while still offering significant opportunities8.
Moreover, the housing market statistics reveal a consistent trajectory that aligns with the expectations for real estate development trends in 2025. Major cities such as Wichita and Topeka are observing price increases, adding to the positive outlook for the area6. For a deeper understanding of the real estate development trends in Kansas City, readers can explore more detailed insights on the Kansas City real estate market7.
Investment Opportunities in Kansas City
Investment opportunities in Kansas City’s real estate market are increasingly attractive, thanks to factors like affordable home pricing and the strategic location of new developments. The median property value for homes in Kansas City falls below the national average, providing a prime entry point for investors who aim to maximize their returns9. Property investors are particularly interested in areas projected for high growth in both residential and commercial properties, making property investment in Kansas City a compelling option.
The demand for rental properties is steadily increasing, driven by a diverse renter base that includes young professionals, families, and students from over 29 colleges10. This demand provides a significant opportunity for investors focused on generating rental income. Additionally, Missouri’s favorable landlord laws enhance the appeal of property investment in Kansas City, providing a business-friendly environment for investors10.
Certain neighborhoods stand out due to their unique investment prospects. For instance, the KCI neighborhood offers A-class single-family homes on large lot sizes, priced higher than the city average9. Conversely, the Independence neighborhood primarily provides B- and C-class single-family homes at lower-than-average prices for the city, presenting attractive options for budget-conscious investors9.
Investment in areas like Village West and Pendleton Heights also holds substantial promise. Pendleton Heights features B- and C-class single-family homes and condos, priced about average for the city9. As Kansas City continues to attract migration of professionals working for major companies like IBM, Amazon, and Honeywell, the demand for quality housing is poised to rise10.
The steady growth in rental rates in Kansas City further adds to the city’s investment appeal10. Investors can explore various strategies, including purchasing properties for rehab and fix-and-flip or fix-and-rent, catering to a market bolstered by continuous demand. Consequently, the combination of affordable entry points, rising rental income, and favorable laws makes Kansas City a prime destination for property investment.
Residential Property Developments Kansas City
The residential property market in Kansas City is witnessing a significant expansion, characterized by the proliferation of new single-family and multi-family housing projects. Residential property developers Kansas City are actively engaged in both market segments to meet the growing demand for diverse housing options.
New Single-Family Homes
New single-family homes in Kansas City are being designed with a focus on community-centric designs and various architectural styles to integrate seamlessly with existing neighborhoods. Community Builders of Kansas City, a major player among residential property developers Kansas City, has been instrumental in this sector. They have contributed extensively to the betterment of local neighborhoods by developing over 700 housing units since 199111. Their Mt. Cleveland Heights project, for instance, received over $11.6 million in funding to create 70 bungalow-style duplexes for low-income families, contributing significantly to the community’s housing needs11.
Multi-Family Housing Projects
Multi-family housing projects are equally important in Kansas City’s residential development landscape. Community Builders of Kansas City have transformed areas with substantial investments in multi-family developments. Significant projects include Ivanhoe Gardens, which received $9 million in 2006 to provide 80 units11, and Parkway Apartments, a 40-unit development costing nearly $9 million, completed in 200711. The East Village Apartments, a 50-unit building located in downtown Kansas City, required an investment of $12 million to be completed by 201011.
These multi-family projects showcase the concerted efforts of residential property developers Kansas City in catering to the region’s housing requirements, enhancing both accessibility and quality of housing.
For more information on such community-centric residential projects, please visit the Community Builders of Kansas City website.
Commercial Real Estate Kansas City
The commercial real estate Kansas City sector is witnessing transformative growth propelled by various developments and investments. The rise of new enterprises along with the expansions of established businesses is increasing the demand for office and retail spaces.
One prominent player in commercial real estate Kansas City is Block Real Estate Services, LLC, which has been serving clients since 1936 and boasts over 70 years of leadership experience in the industry12. Their division, Block Funds, manages over $1 billion in commercial properties, demonstrating their dominant presence in the market12.
REAL Property Group is another significant contributor to the landscape, having been involved in owning, managing, and developing properties in the region since 199213. Projects like THE LoFTS at City Center in Lenexa, featuring 67 boutique apartments and 10,000 square feet of Class A office space, showcase the sophisticated urban living and work environments that are becoming more prevalent13.
The InterUrban Lofts in Overland Park, with its 41 boutique apartments and 7,500 square feet of Class A office space, is another example of mixed-use developments catering to the modern lifestyle13. Lenexa’s THE YARD and Central Green Office Building provide even more high-quality office spaces, giving businesses ample options to establish their headquarters in thriving locations13.
Growth in commercial real estate Kansas City also includes industrial spaces such as the Roto-Rooter Building, which offers more than 12,300 square feet of industrial space, and the Unifirst Industrial Laundry Building at Truman Road and Prospect Avenue, operational since 197113. The presence of these established industrial properties complements the urban office developments, providing a well-rounded commercial infrastructure.
Diverse sectors, from tech startups to health services, are flocking to Kansas City due to its strategic location and business-friendly economic policies. This trend is fostering a dynamic and competitive environment, critical to the city’s commercial real estate boom.
Furthermore, properties such as the Walker Medical Linen Building and Brown-Covey Building underscore the region’s versatility and appeal. The former is accredited by the Healthcare Laundry Accreditation Council and features solar panels on the roof, while the latter has been a hub for Brown-Covey Machine Company for over 30 years13.
The availability of comprehensive reports like BRES’ 2024 Real Estate Report for Metropolitan Kansas City, accessible online, offers valuable insights into the market trends and forecasts, aiding investors and stakeholders in making informed decisions12. These reports are crucial for understanding the evolving landscape and capitalizing on investment opportunities within commercial real estate Kansas City.
New Construction Projects Kansas City
The surge in new construction projects Kansas City is notable, with significant developments reshaping residential, commercial, and public facilities. Among the most ambitious undertakings is SomeraRoad’s plan for the West Bottoms, covering 21 acres with an estimated cost of $526.7 million14. This transformative project will include over 1,200 apartment units, office space, a hotel, storefronts, a public green space, and a town square14.
Moreover, the American Royal project in Wyandotte County is another colossal venture with a budget of $165.4 million15. This comprehensive plan includes a 164,000-square-foot livestock expo arena and a 250,000-square-foot livestock exhibition hall to promote agricultural and livestock activities15.
To further enhance the viability and integration of these new construction projects Kansas City, key infrastructure improvements are crucial. SomeraRoad’s initiative alone will require $45.8 million for infrastructure enhancements, with the city’s allocation accounting for $19.4 million of taxpayer dollars towards upgrading the infrastructure in West Bottoms14. Moreover, public improvements totaling $62 million have been approved, including provisions for affordable housing units14.
The local government has also supported these ventures through special financial mechanisms. The city council has approved $14.8 million in special obligation bonds for public improvements14. Additionally, the West Bottoms improvement district will leverage a 1% sales and use tax, along with a special assessment on properties expected to generate $3.85 million over the first five years14.
Comparison of Major Projects
Projects
Estimated Cost
Key Features
Funding and Financials
SomeraRoad’s West Bottoms
$526.7 million
1,200 apartments, office space, hotel, public green space
$45.8 million for infrastructure, $14.8 million in special obligation bonds14
American Royal Project
$165.4 million
164,000 sqft livestock expo arena, 250,000 sqft exhibition hall
$80 million in STAR bonds revenue15
Overall, these new construction projects Kansas City are poised to meet the expanding city’s economic and social needs. The planned developments offer state-of-the-art infrastructure, fulfill residential requirements, and promote commercial activities, thereby fostering a robust urban environment.
Land Development Companies in Kansas City
Several leading land development companies Kansas City are at the forefront of transforming the city’s landscape. These companies specialize in identifying strategic locations ripe for development, ensuring sustainable and profitable projects that align with Kansas City’s long-term development goals.
Founded in 1991, Russell’s Kansas City office has completed over 500 projects and generated nearly one billion dollars in total revenues16. Their value delivery on commercial construction projects meets the highest standards, consistently completing tasks on time and within budget16. In recent developments, the company acquired Merit General Contractors, Inc. in January 2022 and welcomed the founder and key employees of Manning Construction to their Kansas City office in May 202216.
Block Real Estate Services, LLC has been serving commercial real estate clients since 1936 and manages more than $1 billion in commercial property through its division, Block Funds12. Additionally, their subsidiary, Block Multifamily Group (BMG), offers multifamily management and investment services in Kansas City, Northwest AK, and Shreveport, LA12. Their comprehensive analysis of the Kansas City Commercial Real Estate Market is available online in their 2024 Real Estate Report for Metropolitan Kansas City12.
The professionals at these land development companies Kansas City have deep roots in the community, providing a wealth of experience and commitment to excellence. Greg, as the President, and a Vice President of Business Development with more than 24 years of experience in architecture, engineering, and construction lead Russell’s Kansas City office16. Multiple Project Executives oversee operations, and Matt, the Director of Preconstruction, spearheads their preconstruction efforts16. Community involvement and giving back are pivotal aspects of their ethos, reflecting their dedication to both professional and social responsibilities.
Key Factors Driving Property Development in Kansas City
Property development services Kansas City are experiencing significant growth due to a combination of demographic trends and economic stability. The city’s thriving job market, particularly in sectors like healthcare, finance, and agribusiness, has driven economic expansion, attracting new residents and ensuring a consistent demand for housing17. Additionally, Kansas City’s central location in the U.S. plays a crucial role, positioning the region as a hub for logistics and transportation and bolstering business connectivity through substantial infrastructure investments17.
The focus on sustainable living has also influenced property development in Kansas City. The city prioritizes environment-friendly construction practices, which align with evolving lifestyle preferences among its residents. This shift towards sustainability is complemented by an influx of investments in tech and commercial sectors, catalyzing further real estate development.
Recent developments like the new airport terminal and CPKC Stadium add to the region’s appeal, showcasing Kansas City’s commitment to modernization and world-class amenities18. Additionally, the city’s flexible and supportive government policies offer a conducive environment for economic development, providing a solid foundation for thriving property markets.
Statistical data underscores these driving factors. Since 1995, around 17 million SF of development has taken place in downtown Kansas City, and over 33,000 residents now call this area home, showing a 4,000-resident increase since 202018. The downtown region also supports over 113,000 workers daily, benefiting from a strategically central location18. Furthermore, the cost of living in Kansas City remains lower than the national average, attracting a broad spectrum of investors17.
Key Factors
Impact
Job Market
Strong job markets in healthcare, finance, and agribusiness drive economic growth and attract new residents.
Central Location
Kansas City’s central U.S. location enhances its status as a logistics and transportation hub.
Sustainable Living
Growing preference for sustainable living influences property development projects.
Recent Developments
New airport terminal and CPKC Stadium enhance the city’s infrastructure and amenities.
Economic Policies
Supportive government policies encourage ongoing property development.
Property Development Challenges in Kansas City
As Kansas City continues to expand, it faces significant property development challenges. Balancing growth while addressing community concerns and environmental impacts is crucial for sustainable development in the city.
Community Concerns
Community concerns are central to property development challenges in Kansas City. Residents are particularly worried about increased traffic congestion, water drainage issues, and the preservation of green spaces. The underbuilding issue has led to a housing gap of 12,000 to 24,000 units, which is contributing to rising housing prices and rents, making homes less affordable for many households across the region19. Additionally, public financing deals, such as the one that allowed Mac Properties to receive significant tax breaks on a $101.5 million multi-use apartment building, have both supporters and detractors. Critics argue that the $9.3 million value of these incentives impacts public services and schools negatively20.
Environmental Impact
Environmental considerations are a major aspect of property development challenges in Kansas City. Developments must carefully plan for water management, especially to prevent flooding in certain areas. Industrial and residential projects often lead to the displacement of natural habitats, necessitating solutions that balance development with environmental stewardship. The loss of green spaces and the challenge of integrating new buildings with the city’s existing infrastructure are ongoing issues. The pressure on housing also means increased demand for new builds, which can lead to further environmental degradation if not managed correctly. Efforts to close the housing gap will require substantial investment and thoughtful planning to ensure that Kansas City remains habitable and sustainable for all19.
Issue
Challenge
Data
Housing Affordability
Lack of affordable units
64,000 households cannot find affordable rents19
Tax Incentives
Impact on public revenue
Kansas City lost $551.3 million in revenue due to tax abatements between 2017 and 202220
Environmental Management
Water drainage & green space preservation
N/A
Investor-Owned Rentals
Decreased homeownership
Homeownership down by 2.9% since 201119
Future Outlook of Property Developments Kansas City
The future of property developments in Kansas City is looking strong, with significant growth anticipated in both residential and commercial sectors. Property developments in Kansas City are expected to align with technological advancements and sustainability goals, promoting higher living standards and economic development.
One of the key drivers of this growth is the mixed-use development announced by the Kansas City Current. This transformative project, situated along the Missouri Riverfront, includes a women’s professional sports stadium, residential units, and public spaces, among other amenities. The initial investment of over $800 million highlights the scale and ambition of this development, expected to revitalize the Berkley Riverfront area and provide numerous job opportunities21. Read more about this significant project.
In recent years, Kansas City has experienced remarkable population growth, recording a 9.74% increase from 2010 to 2022, significantly outpacing the national average by 26%22. This growth is driving demand for both residential and commercial properties, resulting in increased development activities. The ongoing projects, such as the $4 billion facility by Panasonic in DeSoto, Kansas, which will employ 4,000 people, further underscore the city’s dynamic economic environment21.
Vacancy rates in Kansas City illustrate the health of its property markets, with industrial vacancies at less than 5% and retail vacancies at 9% across the market21. Despite rising home prices, the city’s housing market remains relatively affordable compared to national averages. For example, the median home sale price in Kansas City reached $285,000 in April 2024, which is still 17% below the national average22.
The affordability extends to rental properties as well, with the median monthly rent of $1,405 being 29% below the national average22. Such affordability is expected to draw more residents, fuelling further property developments in Kansas City. Additionally, the city is gearing up for the FIFA World Cup in 2026, with exciting projects such as the new Kansas City International Airport terminal and the expansion of the streetcar lines21.
Developers and investors are capitalizing on Kansas City’s central location, affordability, and business-friendly environment. These factors, combined with a skilled workforce and a high quality of life, make Kansas City an attractive destination for property investments21. Recent trends show an increase in deal velocity across industrial, single-tenant net-lease retail, and multifamily sectors21.
In conclusion, the future outlook for property developments in Kansas City is promising. With ongoing and upcoming projects, the city aims to offer enhanced living standards, robust economic growth, and a thriving real estate market, making it a pivotal hub for property developments.
Conclusion
As we advance toward 2025, property developments in Kansas City are poised for substantial growth, reflecting a balanced fusion of innovation and tradition. Highlight projects like The Village West of Holmes and other new construction works exemplify an ambitious vision that aims to update the city’s skyline while preserving its cultural heritage. By prioritizing community involvement and strategic planning, these ventures promise to enhance the living standards and aesthetic quality of Kansas City.
Significantly, the influence of both local and statewide real estate trends cannot be overstated. Millennials, who now make up 28% of homebuyers, are driving demand for mixed-use developments that integrate working, shopping, and entertainment amenities, crucial for engaging today’s dynamic lifestyles23. Furthermore, Kansas City’s Power & Light District is a testament to this, having attracted over 95 million visitors and seen a 75% increase in residents over the past decade23. According to recent analysis, there is a notable shift towards renter households, particularly targeting young people and seniors, indicating evolving housing needs24.
Kansas City is at the forefront of this transformation, drawing 60% of Downtown residents from outside the local market, showcasing its magnetic appeal23. With the implementation of mixed-use and sustainable developments, the city is set to provide a model for blending growth with quality living. The planned projects, supported by public-private partnerships and various funding tools, underscore a commitment to creating an environment that resonates with authenticity and local entrepreneurship, ensuring long-term sustainability and economic vitality2324.
FAQ
What are the major property developments in Kansas City in 2025?
In 2025, Kansas City will witness numerous residential and commercial developments, including the significant Village West of Holmes Project, which features 19 single-family homes with contemporary designs.
How is Kansas City preparing for sustainable growth in property development?
Kansas City’s strategic development plans emphasize sustainable growth by integrating green spaces, enhancing connectivity between city zones, and promoting environmentally-friendly building practices.
What makes the Village West of Holmes Project noteworthy?
The Village West of Holmes Project stands out due to its modern living spaces, strategic location at 12800 Holmes Road, and proximity to city amenities like Minor Park and the Blue River Parkway Trail. The project is expected to blend style with comfort, starting in fall with a model home opening in spring 2025.
What are the latest real estate development trends in Kansas City?
Recent trends in Kansas City include a rise in home prices by approximately 6% in 2025 due to tight inventory, a focus on innovative housing solutions, and state-of-the-art commercial establishments.
Are there investment opportunities in Kansas City’s real estate market?
Yes, property investment in Kansas City is highly attractive due to affordable home pricing, strategic locations of new developments, and areas projected for high growth in both residential and commercial properties, promising substantial returns.
What types of residential property developments are happening in Kansas City?
Kansas City is expanding its residential sector with a mix of single-family and multi-family housing developments, catering to diverse housing needs and promoting community-centric designs.
How is the commercial real estate sector evolving in Kansas City?
The commercial real estate sector in Kansas City is witnessing significant growth, driven by demand for office and retail spaces due to new enterprises and expansions of established businesses.
What are some notable new construction projects in Kansas City?
Notable new construction projects in Kansas City include various residential and commercial developments, as well as public facility projects like schools, hospitals, and shopping centers to meet the economic and social needs of the city’s growing population.
Which land development companies are leading in Kansas City?
Leading land development companies in Kansas City specialize in identifying strategic locations for sustainable and profitable projects, aligning with the city’s long-term development goals.
What factors are driving property development in Kansas City?
Key drivers include demographic trends, economic stability, evolving lifestyle preferences, and a focus on sustainable living and investment growth in tech and commercial sectors.
What are the primary challenges in property development in Kansas City?
Major challenges include community concerns over new developments, environmental impacts, water drainage, preservation of green spaces, and managing traffic congestion.
What is the future outlook for property developments in Kansas City?
The future outlook is robust, with an increase in both residential and commercial properties. Ongoing developments aim to support Kansas City’s growth trajectory, focusing on quality of life improvements, technological advancements, and sustainability.
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