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Average Home Values and Ownership in Zip Code 66223: 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 66223, located in Overland Park, Kansas, a vibrant suburb of Kansas City known for its excellent schools and high quality of life, has experienced significant changes in homeownership rates and housing prices over the past decade. These changes reflect broader economic trends and local market dynamics.
In 2013, the homeownership rate in zip code 66223 stood at 65%, with an average home price of $255,606. Over the next decade, there was a gradual shift towards renting, with the homeownership rate declining to 57% by 2022. This change coincided with a substantial increase in average home prices, which reached $434,248 in 2022, representing a 70% increase from 2013. The trend suggests that rising home prices may have made homeownership less accessible for some residents, contributing to the increase in renting.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 66223. From 2013 to 2016, interest rates remained consistently low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable, ranging from 61% to 65%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more rapidly, dropping from 59% in 2017 to 57% in 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging home purchases.
The renter population in zip code 66223 has grown significantly, with the percentage of renters increasing from 30% in 2013 to 43% in 2022. This shift has been accompanied by a steady rise in average rent prices, which increased from $1,366 in 2013 to $1,828 in 2022, a 33.8% increase. The growing renter population, coupled with the area's overall population growth from 21,406 in 2013 to 25,144 in 2022, has likely contributed to the upward pressure on rent prices.
In 2023 and 2024, the housing market in zip code 66223 continued to show strong growth. The average home price reached $459,718 in 2023 and further increased to $472,658 in 2024, representing a 5.9% and 2.8% year-over-year increase, respectively. This growth occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024, potentially indicating strong underlying demand in the local housing market.
Looking ahead, predictive models suggest that average home prices in zip code 66223 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could potentially reach around $525,000 by 2029. Average rent prices are also expected to increase, potentially reaching approximately $2,100 per month by 2029, driven by continued population growth and the trend towards renting.
In summary, zip code 66223 has experienced a notable shift from homeownership to renting over the past decade, influenced by rising home prices and fluctuating interest rates. The area has seen substantial appreciation in both home values and rent prices, reflecting its desirability and strong local economy. These trends are likely to continue in the coming years, with both home prices and rents projected to rise, albeit potentially at a more moderate pace due to higher interest rates and market saturation.
