Topeka Kansas

### Overview of Housing Needs in Topeka, Kansas

Topeka, the capital city of Kansas and the largest city in Shawnee County, faces a multifaceted housing crisis as of late 2025. With a population of approximately 125,000 residents, the city grapples with a persistent shortage of affordable housing units, exacerbated by rising home prices, stagnant wages, and limited new construction. This has led to increased housing cost burdens for low- and moderate-income households, higher rates of overcrowding, and a growing risk of homelessness. According to the Kansas Housing Resources Corporation (KHRC), Topeka's housing needs are part of a broader statewide challenge, where rural and mid-sized areas like Shawnee County require targeted interventions to meet demand. The city's housing stock totals around 55,844 units, with 58.4% owner-occupied and 41.6% renter-occupied, but supply lags far behind population growth and economic pressures. Key drivers include post-pandemic migration inflows (net domestic migration of about 70 individuals in 2021-2022), job growth in sectors like state government and healthcare, and inflation-driven construction costs.

### Current Housing Market Conditions

Topeka's housing market remains competitive and supply-constrained, characterized by low inventory and quick sales. As of October 2025:

- **Home Prices and Sales**: The median home sale price is approximately $185,000 to $217,700, reflecting a modest year-over-year increase of 0% to 3.8%. Homes typically sell within 11 to 20 days, often at or above list price (around 100% of asking). The average home value stands at $189,249, up 2.6% from the previous year. Single-family detached homes dominate new construction, with a median price for newly built units at $339,000—significantly higher than the overall median due to subdivision requirements.

- **Rental Market**: Average rents for a one-bedroom apartment hover around $750–$900 monthly ($9,000–$10,800 annually), while three-bedroom units range from $1,500–$1,800 ($18,000–$21,600 annually). Rents have risen steadily, outpacing wage growth in service and blue-collar sectors.

- **Inventory and Construction**: Inventory shortages are acute, with homes available for sale among the tightest in the nation—well below the 4–6 months' supply needed for a balanced market. New single-family permits averaged 370 annually from 2000–2024, at a low density of 3.8 homes per acre, limiting overall output. Only 0.5% of new homes in this period were townhomes, contributing to inefficient land use.

Sales activity is projected to end 2025 at 2,840 units, a slight decline from 2,860 in 2024, due to persistent supply constraints despite strong demand. The Wichita State University Center for Real Estate forecasts a 4.2% rise in home values through 2025, with prices nearly doubling over the past decade (from about $133,000 in 2015 to $199,966 in mid-2025).

### Affordability Challenges

Affordability is a core issue, with 27% of Kansas residents—including a disproportionate share in Topeka—spending more than 30% of their income on housing (rent, mortgage, and utilities). Topeka's median household income is around $52,000–$55,000, but housing costs consume a larger share for vulnerable groups:

- **Cost Burden Metrics**: The home price-to-income ratio in the Topeka Metropolitan Statistical Area (MSA) often exceeds 3.5, pushing families toward displacement. For blue-collar workers (e.g., carpenters earning a median of $50,000–$60,000), affordability for entry-level homes has dropped from 96% of the market in 2012 to 75% in 2025. Service workers, such as food preparers earning $27,880 annually (41% of area median income, or AMI), face rent burdens of 32–43% for basic units.

- **Renter vs. Owner Disparities**: Renters, who comprise 41.6% of households, are hit hardest. Extremely low-income renters (below 30% AMI) face a statewide shortage of 52,340 affordable units, with Topeka contributing significantly due to its urban-rural mix. Homeownership rates for homes built 2010–2023 are 55%, 11 points below the national average, limiting wealth-building opportunities.

- **Broader Economic Pressures**: Inflation, rising building costs, and federal/state funding cuts (e.g., to moderate-income programs) have slowed progress. The cost of living in Topeka is 14% below the national average, but this affordability edge is eroding as wages lag (median wage growth ~2–3% annually vs. 4–6% price increases).

### Housing Shortage and Demand Projections

Topeka requires approximately 720 new housing units annually to meet demand, encompassing affordable, workforce, market-rate, and special-needs housing. This includes:

- **Overall Shortage**: The Topeka MSA faces a 0.3% housing stock deficit (part of Kansas's 4,200-unit gap), with projections estimating only 39 net new homes annually without reforms. From 2000–2024, denser building (e.g., more townhomes) could have added 2,900 extra units.

- **Rental-Specific Needs**: A severe shortage of affordable rentals for extremely low-income households persists, with waitlists for programs like Section 8 closed since March 2024. The Topeka Housing Authority (THA) manages 744 public housing units, but demand far exceeds supply.

- **Future Projections**: Through 2026, home prices are expected to rise 3%, with sales stabilizing but inventory remaining tight. Rural-adjacent areas in Shawnee County need 3,800–4,800 units yearly statewide, but Topeka's urban core amplifies this for multifamily and senior housing. Net migration and job growth (e.g., in state agencies) will drive demand, potentially adding 100+ units/year if zoning reforms are adopted.

### Specific Needs for Vulnerable Populations

Housing needs vary by demographics, with targeted gaps for several groups:

- **Low-Income Families**: Over 20% of Topeka households live below the poverty line, primarily White (most common), followed by Hispanic and Black residents. Families need more three-bedroom units, as current rents force 33% income allocation for dual-earner low-wage households. Overcrowding affects 10–15% of renters.

- **Homelessness**: The Summer 2025 Point-in-Time (PIT) Count identified 524 individuals (413 households) experiencing homelessness in Topeka and Shawnee County—a slight decrease of 10 from 2024, bucking statewide trends. Of these, 60% are male, 39% female, 0.5% transgender, and 180 (34%) unsheltered. Chronic homelessness rose slightly due to evictions and mental health barriers. Youth (via Impact Avenues) and students face acute needs, with initiatives like the One-Stop Homeless Resource Center pilot providing showers, case management, and rapid rehousing since July 2025.

- **Seniors and Special Needs**: Aging in place is challenged by a lack of accessible units; seniors (over 20% of population) need 100–150 adaptive homes annually. Disabled individuals and veterans require supportive housing, with waitlists exceeding 1,000 for THA programs.

- **Workforce and Immigrants**: Blue-collar and service workers commute longer due to suburban-only new builds. Recent migrants from nearby MSAs (e.g., Manhattan) seek starter homes under $200,000.

Institutional investors hold just 0.2% of single-family homes, so the crisis stems more from regulatory barriers than speculation.

### Ongoing Initiatives and Programs

Topeka is addressing needs through public-private partnerships:

- **Federal and State Programs**: THA's 2025 Annual Plan prioritizes low-income families via 744 public housing units and Housing Choice Vouchers (Section 8, currently closed). The Affordable Housing Trust Fund (AHTF) allocates flexible funding for unmet needs. KHRC's 2025 Action Plan includes public hearings for input on priorities like rural builds.

- **Local Developments**: A $46 million investment will deliver 176 affordable units in Southeast Topeka by late 2026. The Federal Home Loan Bank of Topeka's Affordable Housing Program (AHP) offers up to $75,000 subsidies per unit, with $32.3 million available.

- **Homelessness Efforts**: The 2025 Summit on Homelessness & Housing (April 22–23) fosters collaboration. Kansas's "Built for Zero" campaign aims for functional zero homelessness by housing more people than become homeless, with Topeka's Continuum of Care leading pilots like Compassion Strategies' Mobile Access Partnership (MAP).

- **Policy Reforms**: The Shawnee County 2038 Comprehensive Plan recommends diverse housing types. The AEI Housing Center proposes zoning changes: flexible lot sizes (min. 1,200 sq ft), allowing duplexes/ADUs on existing lots, and residential overlays near jobs—potentially adding 162 units/year.

### Future Outlook

Without intervention, Topeka's housing needs will intensify, with prices climbing 3–6% annually and homelessness risks rising amid economic uncertainty. However, momentum from 2025 initiatives—like expanded AHP funding and the Housing Assessment Tool (HAT)—offers hope. Achieving 720 units/year requires streamlining permits, reducing minimum lot sizes, and incentivizing multifamily builds. Long-term, integrating housing with job centers could mitigate commutes and support equitable growth. Stakeholders, including the Greater Topeka Partnership, emphasize data-driven plans to ensure all residents— from families to seniors—have stable, affordable options. For the latest updates, consult KHRC's 2026 Action Plan hearings scheduled for August 2025.

Henry McClure  
785.383.9994
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