Tucked away in the center of the American heartland and often overshadowed by larger neighbors, Topeka, KS, is quietly gathering momentum as a rare affordability haven, keeping the dream of homeownership alive.
As the state capital and Kansas‘ fifth-largest city, Topeka is home to roughly 125,000 inhabitants. Despite its modest size, Topeka—dubbed the “Golden City” for its sunlit rolling hills—punches well above its weight as a regional employment powerhouse seasoned with plenty of Midwestern charm.
However, what makes Topeka a standout is its housing attainability. The latest Realtor.com® housing data analysis shows that the median listing price in the Topeka metro was $267,000 in May, sitting more than $160,000 below the national number.
This impressive affordability stems from a winning combination of low home prices, relatively high incomes, and a cost of living estimated to be approximately 15% below the national average.
Under these conditions, a local household earning a median income would spend just 25.3% of its earnings on housing, well below the traditional 30% affordability threshold. This high purchasing power places Topeka near the top of the most budget-friendly housing markets across the nation’s 300 largest metros.
Affordability math and Midwestern values
Maranda DeSanto had lived her entire life in Duluth, MN, until two years ago, when she and her husband packed up their family of five and traveled 650 miles south to start a new life in Topeka.
Speaking to Realtor.com, DeSanto explains that she was recruited through Choose Topeka, a relocation incentive and talent attraction program operated by the GO Topeka economic development organization—one of dozens of similar initiatives run by municipalities, counties, and states aiming to lure out-of-state professionals and remote workers with cash grants and mortgage assistance.
As part of the placement, DeSanto, an association management veteran, was hired as CEO of the Kansas Association of Realtors. She was also awarded a $15,000 relocation grant to settle in Topeka—an investment she believes has already paid off for the community.
“We bought a house the first year we were here, our kids are in school, I’m buying products, I’m paying property taxes,” says DeSanto, detailing the positive economic impact she says transplants like her are making on the city.
Although an attractive executive job opportunity initially piqued DeSanto’s interest, she admits she had plenty of professional options nationwide. While a competitive salary and Topeka’s pocketbook-friendly cost of living made the math add up, it was the region’s Midwestern values that ultimately sealed the deal for her.
“I like nice people,” says DeSanto, a born and bred Minnesotan. “I would not be here if I thought there were a bunch of jerks that lived here, because I wouldn’t do well.”
DeSanto’s household now includes her husband and three daughters, three dogs, two goats, and 20-plus chickens. She notes that Topeka strikes a perfect balance, offering big-city amenities worthy of a state capital, including cultural events, such as plays and concerts, without sacrificing its small-town feel.
And for those craving world-renowned barbecue and professional sports, Kansas City is just an hour’s drive away.
Homeownership launchpad for Gen Z
Passionate about building long-term wealth through real estate, DeSanto purchased her first home at age 20. She suggests that markets like Topeka offer Gen Z a rare opportunity to become property owners and begin accumulating equity.
“I look at some of these young kids who are paying thousands of dollars to rent somewhere, and I can’t imagine starting over and being 20 and going, ‘Yeah, I’m going to spend $2,000, $3,000-plus on rent so I can live here,'” she says.
In a place like Topeka, DeSanto says that a young professional or a remote worker dreaming of homeownership can conceivably secure a big-city salary while enjoying a small-city cost of living.
Prospective buyers across the U.S. have taken notice. Cross-market demand data from Realtor.com shows that local listings are drawing views from neighboring Kansas City, as well as from Chicago, Minneapolis, Denver, and Los Angeles, highlighting the humble Midwestern market’s broad appeal.
Looking at the median prices in some of these larger markets, it’s easy to see why: A typical home in L.A. in May came with a $1.1 million price tag, more than four times that of one in Topeka.
Market with low supply, high demand
The Topeka housing market’s story is emblematic of the Midwest as a whole: a region defined by affordable home prices but one heavily constrained by systemic underbuilding.
According to Realtor.com senior economist Joel Berner, there were roughly 35% fewer listings in Topeka last month compared to May 2019 levels, reflecting the Midwest’s ongoing struggle with post-pandemic inventory recovery.
Perhaps unsurprisingly, Topeka has been steadily climbing in the ranks of the Realtor.com Hottest Markets list, clinching the 43rd spot in May thanks to its robust demand and limited supply of for-sale homes.
“This is just a classic, low-cost Midwestern metro with the added benefit of being the state capital and subsequently having robust local employment,” says Berner.
In fact, the state government is the metro’s single largest employer, with nearly 10,000 workers on the payroll.
Topeka is also a major healthcare hub, anchored by the University of Kansas Health Systems St. Francis Campus and Stormont Vail Health. Cementing its status as a diverse job center, Topeka hosts major corporate headquarters and manufacturing operations for top brands such as Goodyear Tire, Mars Wrigley, and Frito-Lay.
“Prices have stayed low in Kansas due to average new construction, and this, combined with relatively high earnings, makes the state attractive to budget-minded buyers,” says Berner.
Among those looking to make a move, homebuyers interested in brand-new builds are in luck: The Topeka metro boasts a significantly lower new-construction price premium compared to Kansas as a whole.
