Wichita, Kansas, is experiencing a significant housing shortage, mirroring trends seen in other American cities, but stands out for its relative affordability. The city ranks ninth nationally in purchasing power for households earning a six-figure salary, according to ConsumerAffairs, a distinction that highlights the complex dynamics of the US housing market.
The current lack of entry-level housing is particularly acute. Three- and four-bedroom houses are currently selling for between $206,000 and $220,000. However, analysis suggests this situation is the result of a decade-long slump in home construction following the Great Recession. A report from July indicated that had building continued at pre-recession rates, approximately 17,000 more homes would have been constructed in Wichita.
The overall housing shortage is estimated to be between 20,000 and 50,000 homes, a figure that underscores the scale of the challenge facing the city. This shortage isn’t unique to Wichita. Overland Park, Kansas, a city located a short distance up Interstate 35, faces a similar, though arguably more pronounced, crisis.
In 2021, a housing needs assessment for Overland Park determined the city required 4,500 entry-level homes priced at or below $321,000. To date, only one such home has been built. The median home value in Overland Park has since risen to $384,400. The problem extends beyond Overland Park, with Johnson County, where the city is located, experiencing a dramatic decline in the availability of homes priced at $350,000 or less.
Data reveals that in 2000, there were 117,609 homes in Johnson County at that price point or lower. Now, fewer than 50,000 remain. This represents a near halving of affordable housing stock over the past 25 years, with the most significant decline occurring in the last decade.
While the housing situation presents a clear challenge, economic indicators suggest a broader trend of improving financial stability for American workers. A report released in December indicated that the median American worker, as of the third quarter of , could afford the same goods and services as in , plus an additional $1,600 per year to spend or save.
This increase in purchasing power is attributed to rising earnings that outpace inflation. Median weekly real earnings—earnings adjusted for inflation—rose by 0.8 percent, or 3.3 percent annually, in the third quarter of . Since , real weekly earnings have increased by 2.8 percent, and by 1.2 percent compared to the previous year.
The analysis, which incorporates data from the Bureau of Labor Statistics, suggests a positive trend for the median worker, though the benefits are not evenly distributed and are clearly impacted by regional variations in housing costs. The situation in Wichita, while relatively affordable compared to other areas, still reflects the broader national challenge of housing availability and affordability.
Beyond housing and income, Kansas is also seeing developments in the energy sector. While the state has a long history of wind energy projects, solar energy development has been more limited despite abundant sunshine. Several utility-scale solar projects are currently under development near Gardner, Dodge City, and DeSoto. A new project has been announced in Decatur County, with Doral Renewables, a Philadelphia-based company, securing an agreement with a “major tech company” to purchase power from its planned 270-megawatt Lambs Draw solar project south of Oberlin.
The confluence of these factors – a housing shortage, fluctuating purchasing power, and evolving energy infrastructure – paints a complex picture of economic conditions in Wichita and the surrounding region. While the city benefits from a relatively strong purchasing power for its residents, the lack of affordable housing remains a significant concern, mirroring challenges faced by communities across the United States.
