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Bonne Hills: Rising Home Values and Ownership Rates Amid Market Fluctuations
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Bonne Hills, a neighborhood in Kansas City, Missouri, has experienced significant fluctuations in its housing market over the past decade. This area has seen a gradual shift in homeownership rates, coupled with notable changes in average home prices and average rent prices.
The ownership percentage in Bonne Hills has shown a general decline from 2013 to 2017, followed by a recovery trend. In 2013, the homeownership rate stood at 61%, but it decreased to 45% by 2017. However, the trend reversed, and by 2022, the ownership rate had climbed back to 57%. This fluctuation coincides with changes in average home prices. In 2013, the average home price was $78,751, which steadily increased to $213,015 by 2022, representing a substantial 170% increase over this period.
The relationship between federal interest rates and homeownership rates in Bonne Hills shows some correlation. As interest rates remained low from 2013 to 2016 (ranging from 0.11% to 0.40%), homeownership rates declined. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates also started to recover. This trend suggests that other local factors may have had a stronger influence on homeownership decisions in this neighborhood than national interest rates alone.
Renter percentages in Bonne Hills have generally mirrored the inverse of homeownership rates. The proportion of renters increased from 39% in 2013 to a peak of 55% in 2017, before declining to 43% in 2022. Average rent prices have shown a steady upward trend, rising from $1,085 in 2013 to $1,249 in 2022, an increase of about 15%. It's worth noting that despite fluctuations in the renter population, rent prices continued to rise, suggesting a strong demand for rental properties in the area.
In 2023 and 2024, the housing market in Bonne Hills continued its upward trajectory. The average home price reached $222,955 in 2023 and further increased to $234,781 in 2024, representing a 4.7% and 5.3% year-over-year growth, respectively. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially indicating strong local market factors driving home prices in the area.
Looking ahead, predictive models suggest that the upward trend in both average home prices and average rent prices is likely to continue over the next five years. Based on historical data and current market conditions, average home prices in Bonne Hills could potentially reach around $280,000 by 2029. Similarly, average rent prices may increase to approximately $1,450 per month over the same period, assuming current economic conditions and local market trends persist.
In summary, Bonne Hills has demonstrated resilience in its housing market, with a recovery in homeownership rates and consistent growth in average home prices despite fluctuations in federal interest rates. The rental market has also shown strength, with steadily increasing average rent prices. The recent surge in home prices, even in the face of rising interest rates, suggests a robust local housing market that may continue to see appreciation in both home values and rental rates in the coming years.
