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Ashland Ridge: Rising Home Values and Shifting Ownership in a Dynamic Kansas City Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Ashland Ridge, a neighborhood in Kansas City, Missouri, has experienced significant changes in its housing market over the past decade. This area has witnessed notable fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in Ashland Ridge has shown a general decline from 2013 to 2022. In 2013, 38% of residents owned their homes, but by 2022, this figure had decreased to 24%. This downward trend in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price in the neighborhood was $45,208. By 2022, it had risen dramatically to $150,534, representing a 233% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for many residents.
Federal interest rates have played a significant role in shaping homeownership trends in Ashland Ridge. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates in the neighborhood decreased from 38% to 22%, possibly due to other economic factors outweighing the benefits of low interest rates. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates showed slight fluctuations but remained relatively low, between 20% and 26%.
The rental market in Ashland Ridge has experienced its own set of trends. As homeownership rates declined, the percentage of renters increased from 62% in 2013 to 76% in 2022. Average rent prices have shown some volatility but with an overall upward trend. In 2013, the average rent was $785, which increased to $915 by 2021, representing a 16.6% increase. However, there was a slight decrease to $777 in 2022. The population of Ashland Ridge has fluctuated over the years, reaching a peak of 1,681 residents in 2018 before declining to 1,272 in 2022. These population changes may have influenced rental demand and pricing dynamics in the neighborhood.
Looking at the most recent data, the average home price in Ashland Ridge saw a slight decrease from $150,534 in 2022 to $147,840 in 2023, followed by a marginal increase to $148,549 in 2024. This recent stabilization in home prices occurs alongside a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to a cooling effect on home price growth in the neighborhood.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Ashland Ridge may continue to experience moderate growth, albeit at a slower pace than observed in the previous decade. This projection is based on the recent stabilization of prices and the current high interest rate environment. Average rent prices are expected to maintain an upward trajectory, driven by the high proportion of renters in the neighborhood and the ongoing demand for rental properties.
In summary, Ashland Ridge has undergone significant changes in its housing market dynamics. The most important discoveries include the substantial decrease in homeownership rates coinciding with a dramatic increase in average home prices, the overall upward trend in rental rates despite some fluctuations, and the recent stabilization of home prices in a high interest rate environment. These trends reflect the complex interplay of economic factors, population changes, and housing market conditions that have shaped this Kansas City neighborhood over the past decade.
