You might not have chosen to relocate to Kansas City — your company might have chosen for you — and perhaps a move to the Midwest doesn’t thrill you because it lacks an ocean. But one thing Kansas City does have in addition to a growing city, flourishing suburban communities, rolling hills, tree-lined boulevards, fine cultural amenities, great dining and top-quality schools that cities on the coasts don’t have is affordability. The 28th largest city in America squares off against its higher-cost competitors and comes out on top in business, personal earnings and savings, and housing costs.
Business Is Booming
You must already know how well Kansas City attracts and retains large multinational companies because chances are you’re relocating with one of them. Among U.S. cities, Kansas City ranks as one of the 10 best
supporters of small business, and it is considered one of the 50 best cities in the world for global business, according to the Kansas City Chamber of Commerce. There’s a reason Kansas City is the world headquarters for several major companies, including Sprint, AMC Entertainment Inc., Hallmark, H&R Block and Russell Stover Candies. And that is this: It has a winning combination of location, affordability and a superior work force of well-educated and highly skilled and motivated workers.
Kansas City’s central geographic location makes it ideal for distribution. With the second-largest rail hub in the nation and an airport that is served by both regional and national carriers, transportation is easy — and satisfactory. J.D. Power and Associates has ranked Kansas CityInternational Airport (MCI) first among 25 medium-size airports in North America, scoring 721 points on a 1,000-point scale — a higher total than the top-ranked airports in the small and large categories.
Earnings and Employment
Kansas City ranks in the top 10 nationally for per capita job growth. Major sectors include education and health services (19.5%), professional and business services (11%), retail (12.3%), financial services (9%), and leisure and hospitality (7.7%). Production workers in Kansas City contribute 40 percent more value added per hour than the national average, as measured by the U.S. Census Bureau.
And according to a National Center for Health Statistics report, workers here take fewer sick days than workers in many other major metros.
According to the Washington Post, the median household income in Kansas is $45,478, with a per capita income of $23,818. Most employment is in management or professional, at 44 percent of the population, followed by sales and office at 31.6 percent, and service at 20.2 percent. In Missouri, the median household income is $42,841, with a per capita income of $22,916 and the same ranking of occupation categories as Kansas.
The Kansas City Chamber reports that more than 6 percent of Kansas Citians have a household income of $75,000 and over, 12.9 percent earn $50,000-$74,999, 17.3 percent earn $35,000-$49,999, and 16.8 percent earn $25,000-$34,999.
Kansas Citians see their money work hard. The area’s cost-of-living index
measures below the U.S. average, as reported by ACCRA, whose index includes costs for groceries, housing, utilities, transportation, health care and miscellaneous goods and services. While this index lists a value of 100.0 as the national average, Kansas City came in below that at 96.5. The metropolitan also consistently rates as one of the most affordable housing markets with populations exceeding one million. Among these metros, Kansas City was the second most affordable market in the fourth quarter of 2006
Because of its high earnings and low cost of living, Kansas City ranked sixth as one of the 50 smartest places to live in a 2006 article in Kiplinger’s magazine, while salary.com ranked it 21st out of 69 major U.S. cities as one of the “best cities to build personal wealth.”
House Hunting
Kansas City consistently ranks among the nation’s most affordable housing markets. According to the fourth quarter 2003 Housing Opportunity Index published by the National Association of Home Builders, Kansas City was listed as the eleventh most affordable place to live, moving up from its previous position of thirteenth. In the study, the country’s 191 largest metro areas were ranked according to housing affordability.
The Kansas City Area Development Council reported that 87.9 percent of the
people in Kansas City could afford to buy homes in the area. According to CNNMoney.com, Kansas City’s median house price is $149,300, up 4.7 percent.
Consider this: According to a 2007 Coldwell Banker report, an average 4-bedroom, 2 1/2-bath, 2-car garage home in Kansas City would be priced at $238,875. A similar home in Sacramento would be $380,625 and $1,381,250 in Boston.
Kansas City’s low costs are fueled by competition in the market place, including competition between builders. As a result, builders must have reasonable prices while providing excellent service. That keeps costs for new homes approximately 25 to 50 percent lower than in other Midwestern
markets. In addition, Kansas City has relatively inexpensive lots, costing $10,000 less than in the city of our closest competitor.
Statistics can say only so much about a city. Yes, Kansas City is a cost-effective place to call home, but you’ll have to come and experience it for yourself. We’ll see you soon!
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