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Eastern 49-63: Soaring Home Values Reshape Kansas City Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
The Eastern 49-63 neighborhood in Kansas City, Missouri, has undergone significant changes in homeownership rates and property values over the past decade. This area has transitioned from a balanced mix of owners and renters to a predominantly renter-occupied community, alongside substantial increases in average home prices.
The ownership percentage in Eastern 49-63 has shown a general downward trend, declining from 52% in 2013 to 36% in 2022. This shift coincides with a remarkable increase in average home prices, rising from $38,143 in 2013 to $183,459 in 2022, representing a 381% increase over nine years. The inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for many residents.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were consistently low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 50%. However, as interest rates began to rise from 2017 (1.00%) to 2019 (2.16%), homeownership rates declined more sharply, dropping to 33% by 2019. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership rates decreased, the percentage of renters in Eastern 49-63 increased from 48% in 2013 to 64% in 2022. Interestingly, average rent prices have not shown a consistent upward trend during this period. Average rent peaked at $1,042 in 2017 before declining to $921 in 2022, a 11.6% decrease. This trend, coupled with the increasing renter population, suggests a complex rental market possibly influenced by factors such as increased rental supply or economic pressures on the local population.
In 2023, the average home price in Eastern 49-63 slightly decreased to $181,409, marking the first decline in over a decade. However, 2024 saw a rebound with average home prices reaching $191,077. These figures coincide with high federal interest rates of 5.02% in 2023 and 5.33% in 2024, which are significantly higher than the rates seen in the previous decade.
Looking ahead, predictive models suggest that average home prices in Eastern 49-63 may continue to rise, albeit at a slower pace than the rapid growth seen in the early 2020s. Over the next five years, average home prices could potentially reach the $220,000 to $240,000 range. Average rent prices, which have been more volatile, are predicted to stabilize and potentially increase moderately, possibly reaching $1,000 to $1,100 per month by 2029.
In summary, Eastern 49-63 has transformed from a balanced owner-renter community to one dominated by renters, with significantly higher property values. The interplay between federal interest rates, homeownership rates, and property values has been evident, with rising home prices and interest rates coinciding with declining homeownership. Despite the shift towards renting, average rent prices have shown unexpected stability, creating a unique dynamic in this evolving Kansas City neighborhood.
