Hi everyone! Michael Gortenburg here.
If you’ve spent any time in real estate as an investor, a homeowner, or even just someone keeping an eye on the market, you’ve probably heard the old saying: “Location, location, location.” It’s a classic for a reason. But in today’s fast-changing real estate landscape, location matters more than ever and not just in the way you might think.
Let’s talk about why picking the right location can make or break your real estate investment.
The Growth Factor: Follow the Development
One of the biggest indicators of a prime real estate location is development. Cities and neighborhoods that are experiencing new infrastructure, commercial growth, and job creation tend to see rising property values.
For example, in Kansas City, areas like the Crossroads District and West Bottoms have transformed from overlooked industrial spaces into highly sought-after residential and commercial hubs. Investors who spotted the potential early saw incredible appreciation.
If you’re considering an investment, pay attention to where new businesses, schools, and transportation projects are being developed. They often signal long-term growth.
The Remote Work Shift: Location Isn’t Just About Downtown Anymore
Not too long ago, proximity to downtown business districts was a top priority for many homebuyers and renters. Now, with remote and hybrid work becoming the norm, more people are looking for space, affordability, and lifestyle perks over being near an office.
That’s why suburban areas like Lee’s Summit and Olathe have become increasingly attractive in the Kansas City metro. They offer more square footage, good schools, and a lower cost of living—all while still providing reasonable access to the city.
For investors, this means that the suburbs and secondary markets are becoming just as competitive as urban cores.
Amenities and Walkability Are Driving Demand
People today want convenience. Whether it’s being able to walk to a coffee shop, access green spaces, or have restaurants and entertainment nearby, neighborhoods that offer walkability and lifestyle perks tend to see higher demand.
Take Brookside and Waldo, for example—both areas in KC that continue to attract buyers and renters because they offer a strong sense of community, access to local shops, and great walkability. These are the kinds of neighborhoods where people want to stay long-term.
As an investor, looking beyond just property prices and focusing on what makes a neighborhood livable can lead to stronger returns.
The Short-Term Rental Boom: Tourist-Friendly Areas Are Goldmines
If you’re investing in short-term rentals (Airbnb, Vrbo, etc.), location is everything. Properties in areas with tourism, major events, or business travel are seeing high demand.
In Kansas City, spots near the Power & Light District, the Plaza, and the stadiums are perfect for short-term rentals because they attract visitors year-round. Whether it’s Chiefs and Royals fans, concert-goers, or business travelers, these areas consistently bring in renters looking for a great location.
Climate and Natural Disaster Risks Are Changing the Game
One thing that investors can’t ignore anymore? The impact of climate and weather risks on real estate.
Flood zones, wildfire-prone areas, and regions with rising insurance costs are making some locations riskier investments. Understanding a property’s climate resilience, insurance requirements, and long-term viability is becoming just as important as price and amenities.
For example, in the Midwest, properties with solid drainage systems, updated roofing, and good insulation are gaining more appeal because they can handle extreme weather shifts better than older, less-prepared homes.
The Bottom Line: Do Your Homework
Real estate investing has always been about timing and strategy, but in today’s market, location plays an even bigger role in determining long-term success. It’s not just about where the best deal is—it’s about where people want to live, where businesses are thriving, and where communities are growing.
So, whether you’re looking at residential, commercial, or short-term rental properties, take the time to study because at the end of the day, a smart investment isn’t just about buying property, it’s about buying in the right place.
What are your thoughts on location and real estate investing? Drop a comment below or connect with me on social media. I’d love to hear your perspective!
Check out my blog about the five reasons why you should invest in real estate!
Michael Gortenburg, Founding Principal of Eighteen Capital Group (18CG) in Kansas City, Missouri.
Michael Gortenburg 