Loading Content...
Benton Neighborhood: Rising Home Values and Shifting Ownership Patterns in Independence, Missouri
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Benton, a neighborhood in Independence, Missouri, has experienced significant changes in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home prices, and rental costs from 2013 to 2024, with projections for the future. Homeownership in Benton has seen a substantial decline, dropping from 51% in 2013 to 27% in 2022. This decrease coincided with a dramatic rise in average home prices, which increased from $34,503 in 2013 to $126,652 in 2022, representing a 267% increase over nine years. The inverse relationship between homeownership rates and home prices suggests that as properties became more expensive, fewer residents could afford to purchase homes, leading to a shift towards renting.
Federal interest rates have played a role in shaping these trends. From 2013 to 2016, interest rates remained low, between 0.1% and 0.4%. Despite these favorable rates, homeownership declined from 51% to 36%, likely due to rapidly increasing home prices outpacing the benefits of low interest rates. As interest rates rose more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates continued to fall, reaching 32% in 2019. A brief dip in interest rates in 2020 and 2021 did not reverse this trend, with homeownership reaching its lowest point of 27% in 2022.
As homeownership declined, the percentage of renters in Benton increased from 49% in 2013 to 73% in 2022. This shift corresponded with a general upward trend in average rent prices, which rose from $816 in 2013 to $906 in 2022, an 11% increase. However, rent prices did not follow a linear path, peaking at $1,105 in 2019 before moderating. The increase in the renter population, from 3,818 in 2013 to 4,039 in 2022, likely contributed to the overall upward pressure on rent prices despite some fluctuations.
In 2023 and 2024, Benton's housing market continued to evolve. The average home price reached $138,817 in 2023 and further increased to $146,615 in 2024, showing a continued upward trajectory. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homeownership affordability and mortgage accessibility.
Looking ahead, predictive models suggest that average home prices in Benton may continue to rise over the next five years, potentially reaching around $180,000 by 2029 if current trends persist. Average rent prices are also expected to increase, possibly surpassing $1,100 per month within the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, Benton has experienced a significant shift from homeownership to renting over the past decade, driven by substantial increases in average home prices. Despite fluctuations, rent prices have also trended upward, reflecting the increased demand for rental properties. The interplay between federal interest rates, housing prices, and demographic shifts has reshaped the neighborhood's housing landscape, with recent data indicating a continuation of these trends into the near future.
