First, there’s a lack of sufficient new construction to meet growing demand. A 2020 Citywide Housing Market Study highlighted that Topeka needs approximately 720 new homes annually to accommodate both homeownership and rental needs, yet construction has not kept pace. Nationally and locally, the housing market has been strained by years of underbuilding following the 2008 recession, and Topeka is no exception. While demand has surged—driven by low interest rates in recent years and an influx of buyers seeking affordability—supply has lagged, with homes selling quickly (often within 7-20 days) and inventory dropping to critically low levels, like the 115 homes for sale reported in 2023 compared to a historical norm of much higher numbers.
Second, a shortage of skilled labor in the construction industry exacerbates the problem. The Topeka Area Building Association has noted a deficit of local builders, with many tied up in custom projects rather than speculative builds that could increase inventory. This labor scarcity, combined with rising material costs (e.g., lumber prices spiked due to supply chain issues and tariffs), makes it less profitable for developers to build affordable homes, particularly in a market where new homes might cost $200,000 to construct but only appraise for $150,000 due to lower local wages and property values.
Third, demographic shifts and economic factors are driving demand beyond what the current housing stock can support. Topeka’s affordability—median home prices around $170,000-$198,500 in recent years, 45% below the national average—has attracted young families, professionals, and retirees, especially from pricier nearby markets like Kansas City or Lawrence. The city’s stable economy, bolstered by government, healthcare, and education sectors, supports this influx, but the existing housing stock, much of it built before 1970, is aging and often requires significant updates to meet modern standards or financing requirements. This limits viable options for buyers, particularly those needing traditional loans.
Fourth, the rental market faces its own crunch. Investors have snapped up single-family homes to convert into rentals, reducing inventory for first-time buyers (85% of whom lack down payment savings, per the 2020 study). Meanwhile, 47% of renters are cost-burdened, and the Topeka Housing Authority estimates a need for 4,000 additional units citywide, including rentals, yet vacancy rates remain high (10%) due to many of the 5,900 vacant homes being uninhabitable or not market-ready.
Finally, zoning and development challenges hinder progress. Rural Housing Incentive Districts (RHIDs), introduced in 2023, aim to incentivize construction by locking in property tax increments for developers, but profitability remains a hurdle in a market with lower returns compared to urban centers. Proposals like prison labor for housing construction (2025 legislation) or zoning reforms (e.g., shifting to form-based codes) reflect creative attempts to address the shortage, but these are still in early stages and face logistical or ethical hurdles.
In short, Topeka’s housing shortage stems from insufficient construction, labor and cost barriers, rising demand fueled by affordability and migration, an aging and shrinking available housing stock, and slow-to-adapt development policies. These factors create a tight market where demand consistently outstrips supply.
