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Average Home Values and Ownership in Zip Code 66215: A Decade of Change in Lenexa, 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 66215, located in Lenexa, Kansas, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen a gradual transition from a predominantly owner-occupied community to one with an increasing renter population, while average home prices and average rents have shown significant growth.
The homeownership rate in zip code 66215 has experienced a slight decline from 62% in 2013 to 60% in 2022. During this same period, average home prices have shown a substantial increase. In 2013, the average home price was $183,457, and by 2022, it had risen to $336,289, representing an impressive 83% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a role in shaping homeownership trends in the area. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.4%), homeownership rates remained stable at 62%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined slightly to 60%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in zip code 66215 has increased from 37% in 2013 to 40% in 2022. Concurrently, average rent prices have shown a significant upward trend. In 2013, the average rent was $1,143, and by 2022, it had increased to $1,512, representing a 32% rise over nine years. The growing renter population, coupled with rising rent prices, suggests a strong demand for rental properties in the area. This trend may be influenced by factors such as job market changes, demographic shifts, or the aforementioned challenges in homeownership affordability.
In 2023 and 2024, the housing market in zip code 66215 continued to evolve. The average home price reached $356,469 in 2023 and further increased to $367,866 in 2024, indicating a continued upward trajectory in property values. Notably, federal interest rates also saw a significant rise, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact homebuying decisions and potentially influence future homeownership rates in the area.
Looking ahead, based on the observed trends and current market conditions, we can project continued growth in both average home prices and average rent prices for zip code 66215 over the next five years. Average home prices are expected to maintain their upward trajectory, potentially reaching around $425,000 by 2029. Similarly, average rent prices are likely to continue rising, possibly surpassing $1,800 per month within the same timeframe. However, the rate of increase may moderate compared to the rapid growth seen in recent years, especially if interest rates remain elevated.
In summary, zip code 66215 has experienced a gradual shift towards a higher proportion of renters, accompanied by substantial increases in both average home prices and average rent prices. The interplay between federal interest rates, homeownership rates, and housing costs has shaped the local real estate landscape. As the area continues to evolve, it will be crucial for residents and policymakers to monitor these trends and their impact on housing affordability and community dynamics.
