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Country Valley - Hawthorn Square: Rising Home Values and Shifting Ownership Patterns
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
Country Valley - Hawthorn Square, a neighborhood in Kansas City, Missouri, has experienced significant changes in its housing market and demographic composition over the past decade. This area has seen notable shifts in homeownership rates and property values, reflecting broader economic trends and local market conditions. Homeownership rates in the neighborhood have increased substantially, rising from 40% in 2016 to 61% in 2022. This increase coincided with a significant appreciation in average home prices, which grew from $141,548 in 2016 to $239,574 in 2022, representing a 69% increase over six years. The correlation between rising property values and increasing homeownership rates suggests that as homes became more valuable, more residents were motivated to invest in property ownership, possibly viewing real estate as a promising long-term investment.
The relationship between federal interest rates and homeownership rates in Country Valley - Hawthorn Square presents an intriguing pattern. Despite historically low interest rates between 2010 and 2021 (ranging from 0.08% to 0.4%), homeownership rates initially remained relatively stable, hovering around 40-50%. However, a significant jump in homeownership occurred between 2019 and 2022, rising from 50% to 61%, even as interest rates began to climb. This trend suggests that factors other than interest rates, such as local economic conditions or housing market dynamics, may have played a more influential role in homeownership decisions.
Renter percentages in the neighborhood have inversely mirrored the homeownership trend, decreasing from 60% in 2016 to 39% in 2022. Interestingly, average rent prices have shown a dramatic increase, particularly in recent years. From 2016 to 2019, average rent prices remained relatively stable, ranging from $496 to $566. However, there was a sharp uptick starting in 2020, with average rent reaching $1,434 in 2022, a 189% increase from 2019. This surge in rent prices, coupled with the decrease in renter percentages, suggests a potential shift in the rental market, possibly driven by a combination of factors including increased demand for higher-quality rental properties and overall market appreciation.
Average home prices in Country Valley - Hawthorn Square continued to rise in recent years, reaching $242,914 in 2023 and $245,902 in 2024. This represents a modest but steady increase of 1.4% and 1.2% year-over-year, respectively. Concurrently, federal interest rates have climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homebuying trends in the neighborhood.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Country Valley - Hawthorn Square will continue to appreciate, albeit at a more moderate pace. Projections suggest home values could reach approximately $270,000 to $280,000 by 2029, assuming a steady annual growth rate of 2-3%. Average rent prices are also expected to increase, potentially stabilizing around $1,600 to $1,700 per month, reflecting ongoing demand for rental properties in the area.
In summary, Country Valley - Hawthorn Square has experienced a significant shift towards homeownership, accompanied by substantial increases in both home values and rent prices. The neighborhood's resilience in maintaining an upward trajectory in homeownership rates, even in the face of rising interest rates, indicates a strong local housing market. As property values continue to appreciate, albeit at a slower pace, and rental prices stabilize at higher levels, the area is likely to remain an attractive location for both homeowners and investors in the coming years.
