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Fairwood and Robandee: A Decade of Fluctuating Home Values and Ownership Rates
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
Fairwood and Robandee, a neighborhood in Kansas City, Missouri, has experienced significant changes in its housing market over the past decade. This analysis examines the fluctuations in homeownership rates and housing prices from 2013 to 2024, reflecting broader economic trends and local market dynamics. The homeownership rate in Fairwood and Robandee has shown a general decline from 2013 to 2022, with some fluctuations. In 2013, 68% of residents owned their homes, but by 2022, this figure had decreased to 60%. During this same period, average home prices in the neighborhood demonstrated a strong upward trend. In 2013, the average home price was $41,934, and by 2022, it had risen dramatically to $149,263, representing a 256% increase over nine years.
The relationship between federal interest rates and homeownership rates in Fairwood and Robandee shows some correlation. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, hovering around 62-68%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a general decline, dropping to 60% by 2022.
Renter percentages in the neighborhood have generally increased as homeownership rates declined. In 2013, 32% of residents were renters, and by 2022, this figure had grown to 40%. Average rent prices also showed an upward trend during this period, albeit with some fluctuations. In 2013, the average rent was $972, and by 2022, it had increased to $1,054, representing an 8.4% rise. It's worth noting that the population of Fairwood and Robandee decreased from 3,790 in 2013 to 3,421 in 2022, which may have influenced the rental market dynamics.
Looking at the most recent data, average home prices in Fairwood and Robandee continued to rise in 2023 and 2024, reaching $157,905 and $166,246 respectively. This represents a 5.8% increase from 2022 to 2023 and a further 5.3% increase from 2023 to 2024. Concurrently, federal interest rates have also increased significantly, rising to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing market trends in the neighborhood.
Based on the historical data and current trends, we can project potential 5-year trends for average home and rent prices in Fairwood and Robandee. Assuming the current growth rate continues, average home prices could potentially reach around $200,000 by 2029. For rent prices, if the average annual growth rate of approximately 1.9% (based on the change from 2013 to 2022) persists, average rent could potentially increase to about $1,160 by 2029.
In summary, Fairwood and Robandee has experienced a decline in homeownership rates despite rising home values, possibly influenced by increasing interest rates. The rental market has grown, with both the percentage of renters and average rent prices showing upward trends. The neighborhood's decreasing population adds an interesting dynamic to these housing market trends, potentially influencing supply and demand factors in both the ownership and rental markets.
