As retirement approaches, more families in Kansas City are considering downsizing. The trend is to move from large single-family homes to more manageable condos or townhomes after children have become independent. This choice comes with both advantages and challenges.

According to Redfin, the median sale price in Kansas City is projected to be $309,282 by June 2026, reflecting a 4.8% increase from the previous year. For the three months leading up to May, the median was $305,000, showing an 8.9% rise year-over-year, indicating a continuing upward trend. The average price for single-family homes is around $299,962, while townhomes generally sell between $275,000 and $320,000. Condos have the lowest median price at $229,945, with current listings averaging a median asking price of $211,000. The market is competitive, with an average of two offers per property and contracts being signed within 23 days.

For those considering downsizing, condos offer clear advantages. They have the lowest purchase prices, and the building's structure, exterior, and most amenities are managed by the homeowners association (HOA), allowing residents to focus solely on interior maintenance as they age. However, this also means that the HOA fees can be relatively high, and there may be restrictions on remodeling or pets based on HOA rules, which can be a burden.

Townhomes occupy a middle ground. Many have their own land, allowing for more independent living compared to condos, and the HOA manages the exterior and common areas, but the fees are typically lower than condos and higher than single-family homes. Single-family homes still provide the most space and the lowest maintenance costs, but the upkeep of yards and roofs can become a burden as one ages. Each type has its own advantages and drawbacks, so it's realistic to assess based on personal lifestyle, physical ability, and budget rather than declaring one option as definitively better.

For families selling their existing single-family homes and downsizing, some choose to use the sale proceeds to purchase a condo or townhome outright, eliminating monthly mortgage payments. This approach leaves only the HOA fees as a fixed cost, making it easier to plan for living expenses in retirement. However, it's important to consider that assets are tied up in a single real estate investment. Many families opt for a compromise, keeping some of the sale profits in cash while using the rest to buy a condo or townhome, so weighing the ratios according to retirement funding plans is advisable.

Kansas City is unique in that it spans both Missouri and Kansas. The Missouri side, south of the river, generally has lower property taxes, while Johnson County in Kansas has higher home prices and taxes but is known for its strong school districts. For families considering downsizing, the tax structure can vary significantly depending on which state they choose to settle in, so it's recommended to compare across state lines.

Families with school-age children may also want to compare the single-family home market in nearby areas like Overland Park or Leawood. These areas have many highly rated schools according to GreatSchools, leading to steady demand for single-family homes. School district boundaries change frequently, so it's wise to verify the assigned school for a specific address before purchasing.

Families moving from out of state to Missouri should also check how property tax and insurance structures may differ from their previous residence. Especially if the tornado risk rating differs from their prior location, homeowners insurance premiums may be higher than expected, so obtaining quotes from several insurers before signing a contract can be helpful. Tax and mortgage conditions can vary by county, so it's best to consult with professionals for specific details. This article is not investment or legal advice, and consulting with experts before making any contracts is recommended.