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Fairmount, Independence, MO: Rising Home Values Amidst Stable Ownership in a Resilient Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Fairmount, a neighborhood in Independence, Missouri, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The ownership percentage in Fairmount has shown moderate variability, ranging from 61% to 69% between 2013 and 2022. Average home prices have demonstrated a strong upward trend, particularly in recent years. Average rent prices have also increased, albeit with some fluctuations.
Analyzing the relationship between homeownership rates and average home prices reveals interesting patterns. In 2013, when the ownership rate was 64%, the average home price was $26,809. As home prices began to rise, there was an initial increase in homeownership, reaching 68% in 2015 with an average home price of $36,105. However, as prices continued to climb, homeownership rates became more volatile. By 2022, despite a significant increase in average home prices to $102,971, the ownership rate stood at 67%, showing resilience in the face of rising costs.
Federal interest rates have played a role in shaping homeownership trends in Fairmount. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. This coincided with a period of relatively stable and high homeownership rates in the neighborhood, ranging from 64% to 68%. As interest rates began to rise more notably from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed more fluctuation but remained relatively strong, suggesting other factors were also influencing the market.
Renter percentages and average rent prices in Fairmount have shown an inverse relationship to homeownership trends. In 2013, with 36% of residents renting, the average rent was $785. As the renter population decreased to 31% in 2018, average rent surprisingly dropped to $664, possibly due to decreased demand. However, by 2022, despite the renter percentage decreasing to 33%, average rent had increased significantly to $1,047, indicating a tightening rental market despite fewer renters.
Looking at the most recent data, average home prices in Fairmount continued their upward trajectory, reaching $116,833 in 2023 and $123,651 in 2024. This represents a substantial increase from previous years, demonstrating the neighborhood's growing attractiveness and value. Notably, federal interest rates have also risen sharply, hitting 5.02% in 2023 and 5.33% in 2024, which could impact future homebuying activity.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Fairmount will continue to rise, potentially reaching around $150,000 by 2029. This projection is based on the steady upward trend observed over the past decade. Average rent prices are also expected to increase, potentially surpassing $1,200 per month within the next five years, driven by overall market appreciation and potential shifts in housing demand.
In summary, Fairmount has demonstrated a resilient housing market with increasing property values and a relatively stable homeownership rate despite rising costs. The neighborhood has weathered changes in interest rates and economic conditions, maintaining a balance between owner-occupied and rental properties. The continued rise in both home prices and rents suggests ongoing demand for housing in this area, pointing to Fairmount's enduring appeal as a residential neighborhood in Independence, Missouri.
