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Crown Center's Home Values Soar Amid Shifting Ownership Landscape
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Crown Center, a dynamic neighborhood in Kansas City, Missouri, has undergone significant changes in its housing market and demographic composition over the past decade. The area, known for its blend of residential and commercial spaces, has experienced a notable trend of decreasing homeownership rates coupled with rising average home prices. From 2013 to 2022, Crown Center saw its homeownership rate decline from 40% to 31%, while average home prices surged from $170,082 to $259,988, marking a substantial 52.9% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that the rising property values may have made homeownership less attainable for some residents.
The fluctuations in federal interest rates appear to have played a role in shaping Crown Center's homeownership landscape. During periods of historically low interest rates between 2013 and 2016, ranging from 0.11% to 0.4%, the homeownership rate remained relatively stable around 39%. However, as interest rates began to climb more significantly from 2017 onwards, reaching 1.68% by 2022, the homeownership rate declined to 31%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially deterring homeownership.
The renter population in Crown Center has grown considerably, with the percentage of renters increasing from 60% in 2013 to 69% in 2022. This shift corresponds with the decline in homeownership rates. Interestingly, despite the significant rise in the renter population from 1,500 in 2013 to 2,343 in 2022, average rent prices have shown only modest growth. In 2013, the average rent was $1,491, which peaked at $1,938 in 2019 before settling at $1,553 in 2022. This represents a mere 4.2% increase in average rent over nine years, despite the substantial increase in demand. The relatively stable rent prices in the face of growing demand could be attributed to factors such as new rental developments or other market forces moderating price increases.
The upward trajectory of home prices in Crown Center continued into 2023 and 2024, with average home prices reaching $268,600 and $272,130, respectively. These figures represent year-over-year increases of 3.3% and 1.3%. Concurrently, federal interest rates saw significant hikes, rising to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying affordability in the neighborhood.
Looking ahead, based on historical trends and current market conditions, projections suggest that average home prices in Crown Center may continue to appreciate, albeit at a more moderate pace. A five-year forecast indicates that average home prices could reach approximately $300,000 by 2029, assuming a conservative annual growth rate of 2-3%. Average rent prices, which have exhibited more volatility, may stabilize or experience modest increases, potentially reaching around $1,700-$1,800 per month by 2029, taking into account historical fluctuations and potential market responses to housing demand.
In conclusion, Crown Center has undergone a transformation towards a renter-majority population, with homeownership rates declining as average home prices have risen substantially. The interplay between federal interest rates, housing affordability, and demographic shifts has shaped the neighborhood's housing market dynamics. While average rent prices have remained relatively stable despite increased demand, the continued rise in home values suggests a potentially challenging environment for aspiring homeowners in the coming years.
