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Average Home Values and Ownership in Zip Code 66207: A Decade of Change in Overland Park, Kansas
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
Zip code 66207, located in Overland Park, Kansas, has experienced significant changes in its real estate landscape over the past decade. This area has seen a gradual shift in homeownership rates, coupled with substantial increases in average home prices and average rent prices, reflecting broader economic trends and local market dynamics.
The ownership percentage in zip code 66207 has shown a slight downward trend over the years. In 2013, the homeownership rate stood at 82%, but by 2022, it had decreased to 76%. This 6% decline in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $237,461, which rose dramatically to $426,299 by 2022, representing an increase of nearly 80% over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of relatively stable homeownership rates around 80-82%. However, as interest rates began to rise from 2017 onwards, reaching 1.83% in 2018 and 2.16% in 2019, homeownership rates showed a slight decline, dropping to 77% by 2018. This trend aligns with the general understanding that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter percentage in zip code 66207 has correspondingly increased from 18% in 2013 to 24% in 2022. This rise in renters has been accompanied by fluctuations in average rent prices. In 2013, the average rent was $1,410, which increased to $1,626 by 2018, representing a 15% increase. However, average rent prices then showed some volatility, reaching $1,525 in 2022. The population growth from 13,064 in 2013 to 15,537 in 2022 may have contributed to the overall upward pressure on rent prices, despite some year-to-year fluctuations.
In 2023 and 2024, the real estate market in zip code 66207 continued to evolve. The average home price reached $454,406 in 2023 and further increased to $470,243 in 2024, marking a 10.3% rise from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, predictive models suggest that the upward trend in average home prices is likely to continue, albeit at a potentially slower pace due to higher interest rates. Over the next five years, average home prices in zip code 66207 could potentially reach or exceed $550,000. Average rent prices are also expected to increase, potentially surpassing $1,800 per month within the same timeframe, driven by population growth and the overall increase in property values.
In summary, zip code 66207 has experienced a gradual shift towards more renters, with homeownership rates decreasing from 82% to 76% between 2013 and 2022. This change has occurred alongside a significant 80% increase in average home prices and fluctuating but generally increasing average rent prices. The recent sharp rise in interest rates, coupled with continued increases in home prices, suggests that the real estate market in this area is likely to remain dynamic, with potential challenges for prospective homebuyers and opportunities for the rental market.
