Area realtors who deal in the relo-cation market know first-hand the impact of the Northland’s low cost of living. Buyers coming from the east or west coast, or even cities such as Denver, Dallas or Atlanta, often are shocked at how much home they can afford here. And with few exceptions, the daily cost of living is equally affordable.
Kansas City is statistically among the least expensive major cities in the country. According to a cost-of-living survey by the American Chamber of Commerce Researchers Association (ACCRA), Kansas City is consistently among the nation’s least expensive medium- and large-sized cities.
For the final quarter of 2004, Missouri Department of Economic Development figures placed Missouri as the sixth best state in the country in terms of cost of living. During the same period, Kansas City was well below St. Louis, the state’s other large metropolitan area.
The Association of Home Builders found much the same results in another recent study. Among areas with a population exceeding one million, Kansas City was ranked the most affordable for housing. The study found that families earning the medium income could afford nearly 85 percent of the homes sold in the Kansas City metro area, compared with communities such as Denver, where the average family could afford only 60 percent of the homes. In New York, that drops to 50 percent, while in San Diego it plummets to 22 percent.
Clay and Platte counties are very much part of this rosy picture. Besides this affordability, unprecedented retail and job growth have gone far in boosting the area economy and pushing unemployment rates far below the state average. The development of casinos in the Northland area also has contributed greatly to job growth.
Along with population growth of almost 20 percent in Clay County and 26 percent in Platte County between 1990 and 2000, Northland residents have enjoyed healthy increases in per-capita income. In the 10 years from 1991 to 2001, per-capita income in Clay County grew by almost 57 percent, resulting in 2002 per-capita personal income of $31,171. Platte County per-capita income grew by a whopping 62 percent, with 2002 per-capita personal income at $34,083.
Furthermore, Northland residents see their dollars going further than in other geographic areas, both statewide and nationwide. With the exception of healthcare, living expenses, such as housing and groceries, were markedly lower in the metropolitan area than state averages. Even though area healthcare costs were several points higher than the state average, they were still far below costs in the St. Louis metropolitan area.
Not surprisingly, the percentage of people living at or below the poverty level was far lower than the greater metropolitan area. According to Missouri Economic Research and Information Center statistics, only 5.4 percent of Clay County residents lived in poverty, while 4.8 percent of Platte County residents met the criteria. This compared to 12 percent of the residents at or below the poverty level in Jackson County.
In terms of demographics, women outnumber men in the Northland by about 5 percent and residents are primarily white. However, diversity is growing with the increase in Hispanic, Black and Asian residents. The Northland’s poulation also is a young one, with 26 percent of residents under the age of 18 and only about 10 percent over the age of 65, making the area slightly younger than the state average.
Business development in Clay and Platte counties experiences many of the same low costs. A study by the R.S. Means Company placed Kansas City below the national average for construction costs, below cities such as Minneapolis and Los Angeles.
In terms of government overhead, only Kansas City’s earnings tax is somewhat unusual. Other jurisdictions, including the state, are consistently low. Clay County even operates only on sales tax revenue while the city of Riverside operates with no major taxes of any kind.
Despite today's wide availability of detailed statistics on nearly every facet of life, an anecdote may still be the best way to comprehend the Northland's cost of living when compared to other areas of the country.
Certainly, Kansas City is among the least expensive major cities in which to live and ranks significantly lower than communities on either the east or west coast, or even cities such as Denver, Dallas or Atlanta. According to the American Chamber of Commerce Researchers Association (ACCRA) cost of living survey, Kansas City is consistently among the least expensive medium- to large-sized cities participating in the ACCRA report. Clay and Platte counties are dead center in that affordable community.
The National Association of Home Builders found much the same results in another recent study. Among 57 metropolitan areas with a population exceeding one million, Kansas City ranked as the most affordable housing market. In Kansas City, families that earned the medium income of just under $55,000 could afford to purchase nearly 85 percent of the homes sold in the Kansas City metro area. That compared with communities such as Denver where the same family could buy only 60 percent of the homes. In New York, that drops to 50 percent while in San Diego it plummets to 22 percent.
But all of these numbers gain a more immediate perspective when applied at the human level. In one case, a woman was recently obliged to sell her modest San Diego home following the death of her husband. She decided to move to Liberty in order to be near her son and his family.
The woman began her home search here with considerable trepidation. To her surprise, she was almost shocked to find the proceeds from her San Diego home netted enough to purchase a large historic house in Liberty and pay for its restoration.
Similar stories include families transferred to the Northland because of a career move by one or more of the spouses. Many are pleased to find they can purchase "trophy homes" in a new development with money from the sale of relatively modest homes. Especially if they are moving from the east or west coast, their investment will often buy more than "twice" as much house.
This scenario needs some qualification. Platte County, with a modest population of approximately 80,000, in recent years saw its average home costs jump. A handful of luxury developments skewed the average and Platte County jumped to a position behind only Johnson County, Kan., for new home costs in the area. However, when averaged with Clay County, the Northland's overall ranking remains affordable and bargains are available in Platte County still. Even in the low-cost Kansas City housing market, the Northland remains affordable.
Business development in Clay and Platte counties generally sees the same low costs. A study by the R.S. Means Company placed Kansas City below the national average and even less expensive than cities such as Minneapolis and Los Angeles for construction costs.
Another aspect of doing business in the Northland is the impact of area governments. Missouri is among the lowest taxing states and only Kansas City's earnings tax would be considered unusual in the metropolitan area.
In the Northland, several real bargains stand out. Clay County operates only on sales tax revenues. Although there are small property taxes for health and other special services, the county government itself levies no real estate taxes. In Platte County, the city of Riverside does that even better, with no major taxes of any kind. The majority of that city's income is derived from one of the Northland's three major casinos. Low taxes there have helped drive the healthy business park development.
