High-income households those earning $500,000 or more annually represent roughly the top 1% of earners in Kansas.
High-Income Homebuyers in Kansas: 20182023 Overview
High-earning households are a small but growing segment in Kansas.
Homeownership Patterns
Homeownership is the norm among this group.
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Most high-income households in Kansas own their homes, and many are repeat buyers who have built substantial equity.
With strong finances, they can move up to dream homes or relocate without the hurdles facing first-time buyers.
Market Conditions
The 20182023 period was largely a sellers market, even at the high end.
Kansass economy and housing market were generally robust, aside from a brief pandemic slowdown in 2020.
Home prices statewide climbed steadily, especially during the 20202022 pandemic-era boom.
Even as interest rates rose in 20222023, inventory remained tight, sustaining competition for homes across price tiers.
Affluent buyers, often less rate-sensitive, continued to transact in large numbers.
Growth in High-End Housing
Crucially, the number of high-end homes in Kansas expanded.
This growth reflects both rising property values and new construction targeting upscale buyers.
Income Dynamics and Migration
Kansass top 1% income threshold was about $555,000 in 2023.
Earning this much is rare in a state known for its moderate cost of living.
Many of those leaving were higher-income residents seeking lower-tax states like Florida or Texas.
Suburban Luxury
Upscale suburban homes are particularly popular.
Custom-built homes priced at $12 million are increasingly common in these suburbs, tailored to buyers specifications.
These properties might consist of hundreds of acres of prairie or working farmland with a custom-built residence on-site.
Limited Urban Options
What about condos or urban lofts?
In Kansas, high-rise luxury condos are relatively scarce compared to big cities on the coasts.
The states wealthy generally prefer a house with land over a penthouse.
Housing Choices: Upsizing, Downsizing, or Relocating?
However, many high-income Kansans have been upsizing or staying put rather than downsizing in recent years.
Several factors explain this behavior:
Until 2022, mortgage rates were at historic lows.
Affluent homeowners could easily finance a bigger or more expensive home at 34% interest.
The pandemic in 20202021 made people value space and comfort at home.
Remote-working high earners often sought larger homes with dedicated offices, home gyms, and expansive yards.
Some older wealthy homeowners held off on selling because of tax reasons.
Limited Downsizing
Downsizing does occur in this group, but typically later and more slowly.
Kansas doesnt receive a huge influx of out-of-state high earners, especially compared to Sun Belt states.
However, its not zero.
As noted, Kansas has experienced net out-migration of wealth.
Johnson County (KS) in particular has seen a loss of high-income residents in recent years.
Those departing often sell prime real estate, which is then bought by other local wealthy buyers or newcomers.
These figures are roughly double the statewide average home price.
By the late 2010s and early 2020s, those numbers increased as more homes surpassed that threshold.
Other Regions
Outside the two big metros, high-income homebuying is more scattered.
In rural and western Kansas, genuine high-income households are few.
In the earlier decade, Kansas was recovering from the 2008 housing crash and Great Recession.
Market Size Expansion
In 20082012, Kansass luxury market was tiny.
Around 2010, only about 34% of Kansas homes were valued above $500,000.
By contrast, by 2018 that share had doubled to ~8%, and it kept growing thereafter.
The number of $500k+ homes expanded dramatically.
Buyer Confidence Rebound
In the late 2000s, wealthy buyers were on the sidelines to some extent.
The financial crisis hurt even high net-worth individuals portfolios, and luxury real estate sales slowed considerably.
By the mid-2010s (20132017), confidence returned.
High-end properties saw even larger gains.
By the late 2010s, builders ramped up again to cater to high-end demand.
Back in 20082012, supply exceeded demand for luxury homes.
Nationally, prices of luxury homes rose at twice the pace of non-luxury homes at the end of 2023.
Kansas saw the luxury segment outpace the rest of the market as well.
Wealthy buyers nationwide often sidestepped mortgage rate concerns by paying cash.
High earners led this space race, often upgrading their primary residence or buying second homes.
Kansas, too, experienced a mini-wave of people looking for more space.
Nationally, the average age of home buyers hit record highs (56 for all buyers in 2023).
Older, repeat buyers dominate the high end of the market.
Kansas similarly saw many buyers in their 50s and 60s making moves, often not downsizing.
Even by 2023, Kansass most expensive residential listings were in the single-digit millions.
This democratization of the luxury market is somewhat different from elite enclaves nationally.
Kansas saw outbound migration of affluent folks, unlike states that had net gains.
The Wichita area also saw a steady uptick in luxury homebuying, though on a smaller scale.
In comparing eras, the post-2018 market starkly contrasts with the post-2008 market.
