Kansas housing market shifts as RHID laws expand to urban areas

The Leavenworth County Board of County Commissioners (BOCC) meeting on April 23, 2025, spotlighted the evolving landscape of housing development in Kansas, particularly through the lens of Residential Housing Improvement Districts (RHIDs). A key discussion revolved around the expansion of RHIDs, which were initially limited to smaller communities in Western Kansas but have now opened up to larger cities like Topeka, Lenexa, and Overland Park.

A representative noted that while the statute governing RHIDs has not significantly changed since its inception in 1998, market forces have driven a surge in housing demand across the state. The representative highlighted that the cost of developing subdivision lots has doubled since the onset of the COVID-19 pandemic, impacting housing affordability. A $300,000 home, once considered a benchmark for affordability, is now viewed as "attainable" but not truly affordable, reflecting the shifting economic realities.

The discussion also touched on the aggressive measures taken by the state legislature to address housing shortages, including direct grants and housing investor tax credits aimed at stimulating development. The representative emphasized that these incentives are crucial, as without them, the starting price for homes could be as high as $350,000, making it increasingly difficult for young families and essential workers to find suitable housing.

In response to concerns about the limited housing options in Lansing, where only seven homes were reported on the market, the representative acknowledged the challenges but reiterated the importance of incentives to encourage new developments. The meeting underscored the urgent need for innovative solutions to tackle the housing crisis in Kansas, as communities grapple with rising costs and limited availability.