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Beacon Hills: Soaring Home Values and Shifting Ownership in a Growing Kansas City Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Beacon Hills, a vibrant neighborhood in Kansas City, Missouri, has experienced significant changes in its real estate market and demographic composition over the past decade. This area has seen notable fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market forces.
The relationship between homeownership rates and average home prices in Beacon Hills has shown a remarkable inverse correlation. In 2013, when the homeownership rate was 39%, the average home price stood at $54,162. As homeownership increased to 51% by 2017, average home prices rose dramatically to $119,322. However, this trend reversed in subsequent years. By 2022, despite a decrease in homeownership to 38%, average home prices had skyrocketed to $289,892, representing a substantial 435% increase from 2013 levels.
Federal interest rates have played a crucial role in shaping homeownership trends in Beacon Hills. The period of historically low interest rates from 2013 to 2016, ranging from 0.11% to 0.4%, coincided with a steady increase in homeownership from 39% to 48%. As interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, homeownership rates became more volatile, ultimately declining to 38% in 2022.
Renter percentages and average rent prices in Beacon Hills have shown a complex relationship influenced by various factors, including population growth. In 2013, with 61% of residents renting, the average rent was $607. As the renter percentage decreased to 49% in 2017, average rent increased to $754. However, by 2022, despite a rebound in the renter percentage to 62%, average rent had surged to $1,093. This substantial 80% increase in average rent from 2013 to 2022 occurred alongside a significant population growth from 774 to 1,378 residents, suggesting strong demand for rental properties in the area.
The real estate market in Beacon Hills has continued its upward trajectory into 2023 and 2024. Average home prices reached $292,371 in 2023 and further increased to $302,411 in 2024, representing a 3.4% year-over-year growth. This price appreciation has occurred despite a sharp rise in federal interest rates, which climbed to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, predictive models suggest that Beacon Hills will likely experience continued growth in both average home prices and average rent prices over the next five years. Based on historical trends and current market conditions, average home prices are projected to increase by approximately 20-25% by 2029, potentially reaching around $370,000. Average rent prices are expected to follow a similar trajectory, with a projected increase of 15-20% over the same period, potentially approaching $1,300 per month.
In summary, Beacon Hills has undergone significant transformations in its housing market over the past decade. The neighborhood has seen substantial appreciation in both home values and rental prices, often moving independently of homeownership rates. The interplay between federal interest rates, population growth, and local market dynamics has created a complex and evolving real estate landscape. As Beacon Hills continues to attract new residents and investment, it is poised for further growth and development in the coming years.
