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Brown Estates: Soaring Home Values and Shifting Ownership in Kansas City
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
Brown Estates, a neighborhood in Kansas City, Missouri, has experienced significant changes in its housing market dynamics. The area has seen fluctuating homeownership rates over the years, with a general trend towards increased renting. Average home prices have shown substantial growth, particularly in recent years, while average rent prices have remained relatively stable with only slight variations.
The relationship between homeownership rates and average home prices in Brown Estates reveals notable trends. In 2013, the neighborhood had a high homeownership rate of 86%, coinciding with an average home price of $30,688. As home prices began to rise, there was a gradual decrease in homeownership. By 2019, the homeownership rate had fallen to 67%, while the average home price had increased to $78,173. This trend suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a role in homeownership trends in Brown Estates. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), homeownership rates remained relatively high, above 73%. However, as interest rates began to rise from 2017 onwards, reaching 2.16% in 2019, homeownership rates declined to 67%. This aligns with the general trend that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in Brown Estates has shown an upward trend over time. In 2013, only 14% of residents were renters, but this percentage increased to 33% by 2019. Interestingly, average rent prices have remained relatively stable during this period, with only minor fluctuations. The average rent was $844 in 2013 and $833 in 2019, despite the significant increase in the renter population. This stability in rent prices, combined with rising home prices, may have contributed to the shift towards renting in the neighborhood.
In 2023, the average home price in Brown Estates reached $131,623, representing a substantial increase from previous years. The federal interest rate for 2023 was 5.02%, which is significantly higher than the rates observed in the early 2010s. Moving into 2024, the average home price has further increased to $138,826, while the federal interest rate has risen slightly to 5.33%. These higher interest rates could potentially impact homeownership rates in the coming years.
Looking ahead, based on the historical data and current trends, we can project potential scenarios for the next five years. If the current trajectory continues, average home prices in Brown Estates could potentially reach around $180,000 to $200,000 by 2029. Rent prices, which have been more stable, might see a moderate increase to approximately $900-$950 per month. However, these projections are subject to various economic factors and local market conditions.
In summary, Brown Estates has experienced a shift towards increased renting, likely influenced by rising home prices and fluctuating interest rates. The neighborhood has seen substantial growth in average home values, particularly in recent years, while rent prices have remained relatively stable. These trends suggest a changing dynamic in the housing market of Brown Estates, with potential implications for future homeownership rates and housing affordability in the area.
