How to buy a home in Missouri

Missouri is known for its friendly communities, beautiful seasons, and a mix of bustling cities and laid-back small towns. With more affordable homes and a lower cost of living, Missouri has plenty of options for home buyers who want a little more space and easy access to jobs and amenities.

Whether you’re moving from one city to another or relocating from across the country, buying a home in Missouri comes with its own set of considerations. Here’s what to know so you can feel confident, informed, and ready for each step of the process.

A quick glance at Missouri’s housing market

Buying a house in Missouri is typically more affordable than the national average, which is $439,869, though price varies depending on the city. Here’s an overview of the Missouri housing market, as of October 2025.

Missouri real estate market trends

Before you start house hunting, it’s a good idea to understand Missouri's housing market and how home prices can vary throughout the state.

Home prices

The median home sale price in Missouri is 35% lower than the national median, per Redfin’s October housing market data. Missouri’s home prices have increased slightly, up 5.9% since last year, though it can change depending on the area.

For example, Kansas City has higher home prices compared to nearby suburbs like Independence and Lee’s Summit. You can use the Rocket Mortgage home affordability calculator to estimate how much you can afford in different areas.

Housing demand vs. inventory

Missouri’s unemployment rate is 4.1% as of August 2025, slightly below the national average.

Some of the major industries in Missouri include agriculture, steel, and automotive. The state’s Midwestern charm, green spaces, and big cities add to the appeal for home buyers.

Inventory and home values have increased in the last year, so there are plenty of homes for sale throughout the state. With a variety of options, it’s important to work with an experienced agent who can help you navigate the local market.

Home buying seasons

Home sales in Missouri pick up during the spring and summer months, with more available listings and buyers. Buying a home in the early fall to winter months could leave you with lower prices and less competition. However, depending on the local market, there could be fewer homes for sale during the off-season. Keep in mind that the best time for you to buy a house depends on your personal goals.

Top places to buy a home in Missouri

Here are six popular places to check out if you’re wondering where you should live in Missouri.

Kansas City

Kansas City is Missouri’s largest metropolitan area, set along the western edge of the state bordering Kansas. This city has a growing job market, a bustling downtown with historic museums, iconic professional sports teams, and a celebrated barbecue tradition. Kansas City’s music culture, spacious parks, and friendly community appeal to homebuyers looking to settle down in a bigger city.

• Population: 508,100*
• Median household income: $69,958*
• Median home sale price: $290,000

*United States Census Bureau

St. Louis

St. Louis is home to iconic landmarks like the Gateway Arch and Forest Park, attracting tourists and home buyers alike. Living in St. Louis offers residents a wide-ranging job market, respected universities, and a lively entertainment scene. The city’s historic neighborhoods, expansive green spaces, and affordable housing contribute to its increasing appeal for Missouri home buyers.

• Population: 301,500*
• Median household income: $53,374*
• Median home sale price: $237,750

*United States Census Bureau

Springfield

Springfield’s location in the heart of the Ozarks has made the city a vibrant business, cultural, and outdoor recreation hub. Living in Springfield offers residents access to scenic trails, local universities, and year-round community festivals and events.

• Population: 169,100*
• Median household income: $54,414*
• Median home sale price: $224,900

*United States Census Bureau

Columbia

Columbia is located about halfway between Kansas City and St. Louis. It’s well known as the home of the University of Missouri. This lively college town is a great option for those working in education, healthcare, or research sectors. While certain neighborhoods near campus can be pricier, you can find more affordable communities nearby, such as Boonville and Fulton.

• Population: 126,200*
• Median household income: $80,543*
• Median home sale price: $310,000

*United States Census Bureau

Independence

Independence is one of Kansas City’s eastern suburbs, near towns like Blue Springs, Lee’s Summit, and Raytown. The area is surrounded by parks, trails, and lakes, making it popular for outdoor recreation like fishing and hiking. Independence is close to downtown Kansas City, so it is a great choice for commuters or home buyers relocating for work.

• Population: 123,000
• Median household income: $58,535
• Median home sale price: $220,000

*United States Census Bureau

Lee’s Summit

Lee’s Summit is another popular Kansas City suburb, located southeast of downtown. You’ll find great regional parks and wildlife areas in Lee’s Summit, which appeals to home buyers who want a laid-back lifestyle while remaining close to Kansas City.

• Population: 101,100*
• Median household income: $102,857*
• Median home sale price: $425,000

*United States Census Bureau

Steps for buying a house in Missouri

If you’ve decided to buy a house in Missouri, we’ll guide you through each step of the process below.

1. Prepare your finances

The first step when buying a house is to prepare your finances, check your credit score, and set your budget. You want to know that you have enough funds to cover a down payment and closing costs.

• Determine your budget by using a mortgage calculator to see how much you can afford in different cities.
• Check your credit score
• Learn your debt-to-income ratio
• Save for a down payment
• Plan for closing costs

2. Explore mortgage options

There are various home loans available if you’re buying a home in Missouri.

• Conforming conventional loans. These loans are offered by private lenders, who typically require a minimum 3% down payment. If your down payment is lower than 20%, you’ll have to pay private mortgage insurance (PMI).
• Jumbo loans. These conventional loans exceed conforming loan limits. They typically require a higher down payment, credit score, and additional cash reserves.
• FHA loans. This is a government-backed loan through the Federal Housing Administration and offers lower down payments depending on your credit score.
• VA loans. Backed by the Department of Veterans Affairs, these loans are for qualifying service members and surviving spouses and require no down payment.
• USDA loans. Backed by the U.S. Department of Agriculture, these loans are for home buyers in qualifying rural areas, with no down payment requirement. The USDA releases an updated map each year showing which areas are eligible.

Missouri also offers first-time home buyer loans and down payment assistance programs through the Missouri Housing Development Commission. If you qualify for one of these programs, it could reduce your down payment amount or closing costs, making it easier to buy your first home. Keep in mind that not all lenders accept all programs.

3. Get preapproved

A mortgage preapproval helps determine how much you can borrow for a home. Getting a preapproval at the beginning of your home search can help you stand out in a competitive market.

Lenders look at your credit score, income, and assets to determine what loans you could qualify for, possible interest rates in Missouri, and overall loan terms. The process typically takes only a few days.

4. Find a reputable Missouri real estate agent

A knowledgeable local agent is invaluable in Missouri, and there are plenty of ways to find a real estate agent, such as on Redfin.com. Be sure to look for a buyer’s agent to represent you. In Missouri, dual agency is allowed if both parties have written consent. Dual agency allows one agent to represent both buyers and sellers in the transaction. Be sure to ask your agent before signing a buyer's agent agreement.

5. Start shopping for homes in Missouri

Once you’ve narrowed down your search to an area that fits you and your family’s needs, it’s time to begin looking at homes for sale.

You and your real estate agent should work together to find listings on the MLS and sites like Redfin, and attend open houses.

Ask questions like:

• How far is the commute?
• What school district is the neighborhood located in?
• Are there parks, shopping centers, and restaurants nearby?
• Is there public transportation nearby or major roads and highways?
• Does the neighborhood have HOA fees? If so, what is the cost?
• What are property taxes like in the city?

6. Make an offer and negotiate

Your real estate agent will guide you through making an offer on a house in Missouri. You’ll need to decide how much to offer, what contingencies to include, and the earnest money deposit amount. Earnest money shows you’re serious about buying the home. It’s usually 1% – 3% of the home price that’s applied to your down payment later.

Your offer might be accepted or rejected, or you might need to negotiate. Keep in mind that you don’t have to negotiate the home’s purchase price; you can negotiate seller concessions, contingencies, or change the closing date.

7. Proceed to close on your Missouri home

Once your offer is accepted, you’ll:

• Submit your earnest money deposit
• Apply for your mortgage
• Schedule your home inspection and appraisal
• Review your Closing Disclosure
• Prepare for closing day

In Missouri, closing costs often range from 3% – 6% of the purchase price. Closing costs typically include escrow fees, home insurance, possible property taxes, home inspection fees, and loan origination fees.

FAQ about home buying in Missouri

Now that you know how to buy a house in Missouri, here are some of the top frequently asked questions about the process.

Can I buy a house in Missouri if I have bad credit?

Yes. An FHA loan may be an option if your credit needs improvement. Just keep in mind that lower credit scores could potentially lead to higher interest rates, a higher down payment, and fewer loan options.

Is buying a home in Missouri a good investment?

Missouri’s affordable home prices, blend of big cities and small towns, and available inventory could make it a good investment for you. You’ll also want to consider insurance costs and the potential for flooding or hurricanes.

How much are property taxes in Missouri?

On average, the effective property tax rate in Missouri is 0.88%; however, local rates can vary by city and county.

Are there any specific factors that could affect the home buying process in Missouri?

Some areas in Missouri are high-risk flood zones, so your lender could require you to carry flood insurance.

How long does it take to buy a house in Missouri?

After your offer is accepted, it typically takes about 30 to 60 days to close on a home. Other factors, like home inspection issues and loan approval, can impact this timeline.

The bottom line: The Show-Me State has a home for you

Missouri has more affordable homes compared to the national average, Midwestern charm, and access to the Ozarks. While home prices have been increasing, the majority of the state remains affordable. Working with a qualified Missouri real estate agent can help you through the nuances of buying a home and finding the right area to live.

If you’re ready to buy a home in The Show-Me State, start the mortgage approval process with Rocket Mortgage^® for a personalized plan that fits your financial goals.

Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.

Rocket Mortgage is not acting on behalf of FHA or HUD.

The 3% down payment option is only available on certain conventional loan products and is not available in all states. Additional terms and conditions may apply.

This article is for informational purposes only and is not intended to provide financial, investment, or tax advice. You should consult a qualified financial or tax professional before making decisions regarding your retirement funds or mortgage.