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Average Home Values Soar in Legacy East, Kansas City: A Decade of Change
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
Legacy East, a neighborhood in Kansas City, Missouri, has experienced significant changes in its housing market over the past decade. This area has seen notable shifts in homeownership rates and fluctuations in average home and rent prices. The general trend shows declining homeownership coupled with rising average home prices and relatively stable average rent prices. The homeownership rate in Legacy East has shown a notable decline over the years. In 2013, 29% of residents were homeowners, but this figure dropped to just 13% by 2018. However, there has been a recent uptick, with homeownership reaching 25% in 2022. This trend inversely correlates with average home prices, which have seen a substantial increase. In 2010, the average home price was $24,136, rising dramatically to $111,782 by 2022, representing a 363% increase over 12 years.
The relationship between federal interest rates and homeownership rates in Legacy East shows some correlation. For instance, the period of low interest rates from 2013 to 2016 (ranging from 0.11% to 0.40%) coincided with a decline in homeownership from 29% to 21%. This unexpected trend might be attributed to other local factors outweighing the potential benefits of low interest rates. However, the recent uptick in homeownership to 25% in 2021 and 2022 occurred despite rising interest rates (0.08% in 2021 to 1.68% in 2022), suggesting a complex interplay of factors influencing homeownership in the neighborhood.
Renter percentages in Legacy East have generally increased over time, rising from 71% in 2013 to a peak of 87% in 2018, before settling at 75% in 2022. Average rent prices have remained relatively stable, with some fluctuations. In 2013, the average rent was $891, dipping slightly to $869 in 2014, then rising to $932 in 2021, before decreasing to $882 in 2022. The stability in rent prices, despite the increasing renter population, suggests a balanced rental market in the neighborhood.
Looking at the most recent data, the average home price in Legacy East continued its upward trajectory, reaching $119,427 in 2023 and further climbing to $135,601 in 2024. This represents a 21.3% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Legacy East will continue to rise, potentially reaching around $180,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. Average rent prices are expected to show moderate growth, potentially reaching approximately $950-$1,000 per month by 2029, assuming the stability in rent prices continues with a slight upward adjustment for inflation and market demand.
In summary, Legacy East has experienced a significant increase in average home prices, a recent rebound in homeownership rates, and relatively stable average rent prices. The neighborhood's housing market has shown resilience and growth, with a strong trend towards higher property values. The recent uptick in homeownership, despite rising interest rates, suggests a potential shift in the neighborhood's housing dynamics that will be interesting to monitor in the coming years.
