Category Archives: Kansas City neighborhoods

February 24, 2007 · 10:39 am

New Urbanism, Smart Growth, Whatever: Just Do It

Before I get started let me just say this. I am not an environmental radical. I do recycle. I drive a small car. I’m for smart growth. I’m for anything that lessens our dependence on oil. However, I also live in our real, modern America and I have a minivan to drive around my family of six, and that vehicle currently uses oil. I live in the capital of suburban sprawl right here in Olathe, Kansas and I’ve been known to leave lights on for days at a time.

New Urbanism and Smart Growth do need more attention. Especially here in the heartland where land is so plentiful and cheap that we tend to squander our natural resources without much thought. Clean up this blighted area and recycle the land with new homes, schools and businesses? Nah, just tract out another 100 acres down by Spring Hill and start building!

There are economic, sociological and governmental forces here at play that are too large for just one guy to make a difference. (And talk about a dysfunctional city family here in the metro…KC doesn’t like Overland Park, Olathe doesn’t like Lenexa, everyone fights with everyone over business…) But I would at least like to bring it to the attention of some of you out there.

On this post you will find several links to sites that I think are worth your time to check out. Building & Philosophy sites, a National Geographic site, community sites like Kentlands in Gaithersburg, Maryland, Cherry Hill Village in Michigan and Orenco Station in Oregon to name but a few. (Imagine Zona Rosa with housing right around it so that people could safely walk to the shops and dining without having to drive!) There are even many blog sites concerning urban policy and growth.

I see hope for this train of thought here in the Greater Kansas City area. After all, the condo/loft boom in downtown and the River Market areas are a direct result of people young and old wanting to live in a community that they are actually a part of. To walk to work and dining and entertainment. To not have to negotiate I-35 each and every day.

I have even seen a few builders here in the KC metro put together some neo-traditional housing neighborhoods. Yes, they lack the overall efficiency of a true smart growth neighborhood and are often built out on empty acres miles from shopping and business centers but they are a baby step in the right direction.

True, we are Kansas City and we have different lifestyle traditions than the people on either coast. No matter how nice, spacious and well put together an all brick, three level town house is people here are probably never going to be crazy about living in one. But maybe we can mix a few in along with some well designed single family homes and surround these around a business center? Maybe we can move forward on the Light Rail for Kansas City down to Waldo. (This subject is sure to bring about a comment or two!)

I don’t pretend to have all the answers to our growth problems here in the United States. Many with my political point of view believe we have no growth or environmental problems. But I think that it is short sighted of us to not look towards the kind of city and neighborhoods we are leaving for our children. To continually strive to make a better city than what was given to us and to have affordable housing, clean air, jobs and first class educational facilities is what I believe most of us want . We just have to come to agreement on how this is to be done.

So long as the discussion is civil, I welcome your emails and comments. Reasonable people can debate issues and look for places of promise even when the disagree on many points.

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Filed under Kansas City neighborhoods, Kansas City Real Estate, Social Issues

February 5, 2007 · 11:36 am

Johnson County Rental Housing In Balance

On the front page of USA Today’s February 5, 2007 edition was a story titled Renters will dig deeper in 2007. The gist of the story was that with scarcity of housing in many parts of the country combined with the fact that rental home owners had to pay more for those units renters were going to see an increase in their rents this year beyond inflation. In fact, the article says that rents are 14% higher since 2004 while income has grown only 4%. Hmm, I smell a problem for many people.

And here in the suburbs of Kansas City we too have a situation in which I believe rents are beginning to firm up and, in many cases, beginning to ease up from where they have been for nearly three years. But overall, I believe we still have balance in the rental market.

How did we get here? For the past three to four years rents have been soft because the best prospective tenants were also the best prospective home buyers. With a mere $1,000 or $2,000 invested (not too much more than a security deposit) a previously good tenant could now be a homeowner. This placed a downward pressure on rents because more landlords were scrambling for an ever decreasing pool of qualified renters. Investors were still buying income property but they weren’t getting the rents they needed to make a good investment a great one. Cash flow suffered, in most cases.

However, now foreclosures are at record levels in the Greater Kansas City area. Lenders are beginning to look twice at some borrowers and with creeping interest rates many tenants are happily remaining tenants. Plus, with the boom we’ve had over the last five years anyone that wanted to move has probably done so. Which brings us to where we are today.

There are still some neighborhoods with an unusually high vacancy rate. I notice them most in the outlying areas of Kansas City like Grain Valley, Liberty and some parts of Wyandotte County. But here in Johnson County it is not unusual for me to drive through a “rental” neighborhood and see one For Rent sign for every 75-85 units. And that is a pretty darn good situation.

I think that there is still enough competition to keep rental rates from escalating more than 1%-3% this year. But overall, in most parts of the KC area and Johnson County, especially, I see a pretty good balance. Tenants have enough choices to make good decisions and Landlords are able be a little choosier than they have been in the past. Slashing rents and offering drastic incentives is probably a thing of the past. Raising rents 5%-10% seems out of the question…at least at this time.

Freaky Fridays

On a whim I have decided to devote Fridays on my blog to miscellaneous ramblings and venting in general on all things that come across my path including but not necessarily related to real estate. And since it’s my blog…I can do this.

Reason #458 to purchase a Mini Cooper from Baron Mini in Shawnee Mission, Kansas: Yesterday it was 17 degrees, I started my car and let it warm up. I then went outside (where it had been parked at my office) threw on the heater and WHAM a 10″ crack appeared on my windshield. I got out and looked at it but couldn’t see a rock chip so this morning I drove up to Baron. They looked at it for 20 seconds and then booked me a car and a repair for tomorrow. The service there is always fabulous!

How about them Kansas Jayhawks? Big game this Saturday against Texas A&M and ESPN College GameDay is going to be there!

Real estate agents that cannot return the key to the keybox or leave a front door unlocked drive me crazy. It’s really simple. Treat the home being shown like it is your own. End of discussion.

I am assuming that since they are fast food that Chick-fil-A sandwiches are not good for you. But do I love that #1!

When will the snow melt here in Olathe? I’m sick of it. If I wanted to live in Minneapolis I would move there!

And yes, I’m aware it’s not Friday…I just may not have time to post tomorrow!!! And I’m a rebel who makes his own rules…

Kansas City Real Estate

An interesting article was brought to my attention. It was published in the Wall Street Journal on December 23, 2006 and it was speaking of the new rules of real estate investment. And as I understand it the article named Kansas City, and it’s surrounding suburbs, as a place where the savvy investor would want to put his money.

This is not news to me! Over the past 12 months I have helped a half dozen people from the California and Washington purchase homes here in the metro KC area for investment purposes. When they tell me the acceptable numbers for their home areas, I cringe. Why would you want to have to put down 50%, 60% or 70% just to cash flow on a conventional mortgage. And the “gimmick” mortgage options they describe to me get me to chuckling. Seriously, you could invest here with 15%-25% down, hire a property manager (so you don’t have to do anything!) and still break even…or better.

Housing here in Kansas City is fabulous. We have a very nice mix of affordable and middle class and darn right wealthy. Duplexes are an easy and affordable way to get started and yet there are plenty of “priced right” single family homes and apartment complexes you could venture in to should you desire to do so.

If you are from the Kansas City area (including Overland Park, Olathe, Lee’s Summit, Blue Springs…among others) wake up and smell the roses. Quit looking around and start acting. If you are from outside of Kansas or Missouri, I would love to tell you about my hometown and the returns that can be generated here.

Real estate investing can be fun and profitable. It can also be nerve racking and drudgery. Which would you like to chooose?