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Citadel's Rising Home Values and Ownership Amid Fluctuating Interest Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Citadel, a neighborhood in Kansas City, Missouri, has experienced significant changes in homeownership rates and property values over the past decade. From 2013 to 2022, the area saw a substantial increase in homeownership, rising from 38% to 54%. This shift coincided with a remarkable 233% increase in average home prices, from $62,027 in 2013 to $207,014 in 2022. These trends occurred against a backdrop of generally low federal interest rates, which ranged from 0.08% to 1.83% between 2013 and 2021.
The relationship between interest rates and homeownership in Citadel is noteworthy. The low interest rate environment generally encouraged homeownership due to more affordable financing options. However, it's interesting to note that even as interest rates began to rise in 2022 (1.68%), homeownership in Citadel continued to increase, suggesting other factors may also be influencing this trend.
As homeownership increased, the percentage of renters in Citadel decreased from 62% in 2013 to 46% in 2022. The rental market during this period showed considerable volatility. Average rent prices fluctuated significantly, starting at $528 in 2013, peaking at $751 in both 2015 and 2021, before dropping to $586 in 2022. This fluctuation, combined with a growing population (from 1,234 in 2013 to 2,101 in 2022), indicates a complex rental market influenced by various factors including housing supply, demand, and overall neighborhood development.
The most recent data shows continued growth in Citadel's housing market. In 2023, the average home price reached $210,589 and further increased to $218,804 in 2024. This appreciation occurred despite significant increases in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. The persistent growth in home values suggests strong demand for housing in the neighborhood, potentially driven by its growing popularity or improvements in local amenities and infrastructure.
Looking ahead, predictive models forecast continued growth in Citadel's housing market over the next five years. Average home prices are projected to potentially reach between $250,000 and $280,000 by 2029. The rental market is expected to see more moderate growth, with average rent prices potentially reaching $650 to $700 per month in the same timeframe, assuming the current balance between supply and demand remains relatively stable.
In conclusion, Citadel has demonstrated a strong trend towards increased homeownership and rapidly appreciating home values over the past decade. Despite fluctuations in the rental market and rising interest rates, the neighborhood continues to see growth in both population and property values. These trends suggest Citadel is becoming an increasingly desirable area for homeowners, with potential for continued appreciation in the coming years.
