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Fairland Heights: Soaring Home Values Amidst Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Fairland Heights, an Independence, Missouri neighborhood, has experienced significant changes in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, providing insights into the evolving landscape of this community.
From 2013 to 2022, Fairland Heights saw a notable shift in its homeownership dynamics. The neighborhood's homeownership rate decreased from 52% in 2013 to 43% in 2022. This trend coincided with a substantial increase in average home prices, which rose from $36,067 in 2013 to $126,555 in 2022, representing a 251% increase over nine years.
The relationship between federal interest rates and homeownership rates in Fairland Heights follows a generally inverse pattern. In 2013, when interest rates were at a low 0.11%, the homeownership rate was 52%. As interest rates rose to 1.83% in 2018, the homeownership rate declined to 49%. This trend continued into 2022, with interest rates at 1.68% and homeownership falling to 43%, demonstrating how lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in Fairland Heights increased from 47% in 2013 to 57% in 2022. This shift corresponded with a rise in average rent prices, which grew from $787 in 2013 to $1,096 in 2022, a 39% increase. The population of Fairland Heights also grew during this period, from 1,153 in 2013 to 1,774 in 2022, potentially contributing to increased demand for rental properties and subsequently higher rent prices.
As of 2024, the average home price in Fairland Heights has reached $138,926, continuing the upward trend observed in previous years. This increase occurs alongside a federal interest rate of 5.33% in 2024, which is significantly higher than the rates seen in the early 2010s. Despite this higher interest rate, home prices have continued to appreciate, suggesting strong demand in the local real estate market.
Predictive models suggest that both average home prices and rent prices in Fairland Heights are likely to continue their upward trajectory over the next five years. Based on historical trends and current market conditions, average home prices could potentially reach the $160,000 to $180,000 range by 2029. Similarly, average rent prices may increase to between $1,300 and $1,500 per month during the same period.
In summary, Fairland Heights has experienced a significant shift from homeownership to renting over the past decade, accompanied by substantial increases in both average home prices and rent prices. The neighborhood's growing population and changing demographics have likely contributed to these trends. As interest rates have risen in recent years, the impact on home prices has been less pronounced than might be expected, indicating strong underlying demand in the local real estate market. These trends suggest that Fairland Heights is likely to remain a dynamic and evolving neighborhood in the coming years, with continued growth in property values and rental rates.
